Electric vehicles (EVs) are becoming more common, and sales are continuing to increase as gas-powered vehicles are slowly being phased out. Business and property owners are finding value in installing EV chargers, but you also want to remember you have options when you are structuring your models for profit and sustainability.
There are advantages to installing EV chargers and if you are asking how to monetize your EV charging stations, there are three ways to look at it.
3 EV Charging Business Models
1. Attract Tenants by Installing EV Chargers
Installing EV chargers can attract tenants to your property. In 2019, 2.1 million electric cars were sold worldwide. It’s a 40% year-over-year increase, and the EV market is expected to accelerate to $2.3 trillion by 2041. Investing in EV chargers is a way to attract electric vehicle owners to your complex or business.
This type of EV charging business model is best suited for,
- Commercial businesses that include office space and retail stores
- Owners and managers of multi-dwelling complexes
- Retail space owners
- Hospitality and hotel property owners
A benefit of this business model is its flexibility. You have the option of providing free EV charging for tenants and visitors. It’s an effective way to attract tenants and consumers to your business. You also have the option of charging a fee. The fee can only apply to visitors, or you can charge everyone for the amenity.
We have a blog, EV Charging Memberships for Mixed-Use Buildings, that we think would be a good place to start reading about the benefits of EV chargers when trying to attract high valued tenants.
2. Offer Free EV Charging to Highlight Your Commitment to the Environment
This EV charging business model highlights your commitment to sustainability and the environment. Offering free EV charging can boost brand recognition and your company’s reputation with consumers.
By offering free EV charging to tenants, guests, and customers, you can attract electric vehicle owners to your property. It’s also an effective way to attract new tenants and consumers to your business.
The simplicity of the program is an advantage. You do not have to worry about billing customers for their charging times. The charging and maintenance costs for the stations are often considered business expenses. You can deduct the costs from your annual taxes. Your revenue from the EV chargers will come from the increased business in your retail space. Multi-family complexes may also be able to charge higher rent when the EV station use is free.
Promoting your EV chargers can generate positive brand recognition and be used as an effective marketing tool.
A few reasons why you may want to consider offering free EV charging include,
- 87% say a commitment to social or environmental issues gives a company a positive image
- 88% show increased loyalty to a company that cares about environmental and social issues
- 92% of millennial consumers say they’re more likely to trust a company that supports social or environmental issues
3. Recoup Energy Costs by Installing EV Chargers
You can take advantage of state and federal incentive programs. These programs can help offset the costs associated with purchasing and installing EV chargers. Some incentive programs cover all of the costs, meaning you pay nothing out of pocket. An example is the 2020 30C tax credit. It gives business owners up to $30,000 for the installation of EV chargers.
Contact Apogee Charging Solutions to Learn More
Whether you are looking for information about installing EV chargers or need help creating an effective EV charging business model, we can help. Contact us today to learn more about monetizing your EV charging stations.