Electric vehicle charging station business opportunities
Installing electric vehicle charging stations today isn’t just about preparing for the shift in transportation, it’s a clear way to attract more customers and generate more profits. Here are some examples of how adding public electric vehicle charging can make your existing business more profitable and become a revenue stream in its own right.
How to increase customer spending with electric vehicle charging
In today's competitive landscape, businesses must come up with creative ways to engage customers while increasing the value of each transaction. Transforming your location into an EV charging destination is one of the easiest ways to achieve this.
Increase the average duration of each customer interaction
Once EV drivers stop charging, there are clear cross-selling opportunities for additional products and services. Whether it’s a rideshare driver recharging during their lunch break or a minor league coach recharging while serving snacks to the team.
If you offer EV charging services, EV drivers will be more willing to visit your location and spend time there.
Depending on the type of charger you choose, charging time for an electric car can range from a few minutes to a few hours (depending on battery size). Ideal for shops, restaurants or petrol stations, the fast (DC) charging solution can charge even the largest EV batteries in under an hour.
However, since most electric vehicles arriving at your location don't want to charge from 0% to 100%, a standard Level 2 (AC) charging solution will also satisfy most drivers, allowing them to travel approximately 25 miles per hour. mile. In many cases, a mix of AC and DC charging stations is the best solution.
Either way, by providing your customers with a convenient charging experience, you also encourage them to spend time and money at your location while they wait.
How to attract customers with electric vehicle charging stations
Our research, conducted in partnership with Ipsos, found that EV drivers are more educated, wealthier and younger than the general population. Your EV-driving customers have more disposable income than gas-car drivers, so not only will they spend more time at your location, but they will purchase higher-end goods and services each time they visit. Additionally, once these drivers know that your business offers this valuable service, they are likely to become loyal, repeat customers.
According to the Ernst & Young Mobility Consumer Index, 52% of car buyers are considering an electric vehicle as their next purchase. So targeting your location as one of the locations that offer EV charging now can turn your business into a frequently visited EV charging destination.
How to improve the business reputation of electric vehicle charging stations
It’s no exaggeration to say that electric vehicle charging stations can also put your business on the map. Popular navigation websites like Google Maps or Waze, as well as dedicated charging apps like PlugShare, feature interactive maps that allow drivers to find nearby public charging stations. By setting up charging stations at your site, you can increase your brand awareness on these platforms and attract new customers.
Additionally, with custom charging stations displaying your brand colors or logo, you can significantly improve your corporate image by letting everyone who sees them know that your organization is openly committed to a more sustainable future.
Generate EV charging station revenue
Attracting new customers, earning brand loyalty, and increasing time (and money) spent at your location are all great examples of how EV charging can improve profitability. But the most obvious way EV charging can increase profits is through the revenue earned from the charging stations themselves. Depending on the business model you choose, you can generate additional revenue by setting fees that your customers will be more than happy to pay.
Electric cars are charged based on energy consumption
A common approach is to simply charge the cost of the energy used (i.e. $0.15/kWh). You are also free to define your own markup (i.e. $0.35/kWh). So, if a car needs 25 kWh of charging when stopped, that's:
25 kWh x $0.50/kWh = $12.50.
Electric vehicles charge by time
If you want to set your fees based on time, you can implement a flat hourly rate (i.e. $2.75/hour). So if the charging station has a charging power of 7.4 kW and the car requires 25 kWh to charge:
25 kWh / 7.4 kW = ~3.5 hours.
From there, simply multiply the inserted time by your hourly rate to get an estimated earnings:
~3.5 hours x $2.75/hour = ~$9.63 total.
Comprehensive Electric Vehicle Charging Fees
Some sites combine both forms of charging. For example $0.45/kWh + $0.30/hour. This helps keep their hourly rates down while still ensuring guests aren't "camping" somewhere once their car is fully charged.
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