According to recent statistics, the United States is on the verge of an electric vehicle (EV) boom. As of March 2020, the country had over 25,000 charging stations and up to 78,500 charging outlets nationwide. In addition, companies such as GM, Tesla, Nissan, and Toyota continue to ramp up their efforts to build an electric car empire within the next five years. But the profit potential isn’t limited to automotive manufacturers. Electric car-charging stations are becoming an option for entrepreneurs. If you’ve thought about starting your own venture, car-charging stations may be a viable business.
Why You Should Start an EV Charging Station Business
The growth of the electric vehicle market is a huge reason to start an EV charging station business. Based on statistics from the Edison Electric Institute, the number of EV cars hit over 1 million in 2018 with projections of the market hitting 3 million by 2021. In addition, the same study shows that over 18 million EVs will hit U.S. roads by 2030. With such an uptick in the number of EVs, starting an EV charging station business seems like a no-brainer.
Adding to the allure of starting such a company is that many small, medium, and large businesses have begun to add EV charging stations at their offices. Both employees and customers are typically allowed to use the stations. As a result, the installation of such charging stations can boost employee morale, customer perception, and company reputation.
But Are EV Charging Stations Profitable?
Charging stations certainly have perceived profitability. Yet hurdles still exist. One of the greatest obstacles is dealing with demand charges. Demand charges are a momentary rise in the cost of electricity during peak hours levied by energy companies. As a result, the rise in cost during peak hours must be offset by the price, much like the ways that Uber and Lyft have surge pricing.
The current problem is that there aren’t enough EVs currently to make most EV charging stations profitable during peak hours. However, the rise in EV usage and the current projections mean that the innovators and early adopters could reap monetary benefits within a few years.
How to Start an EV Charging Station Business
Many clean energy companies can facilitate and streamline the process of your EV charging station business. Not only can they help you sort out a great location, but they can also install the charging station and provide routine or emergency maintenance. Furthermore, these companies make certain that you receive any tax credits in your state or municipality. As a result, you can minimize your costs while also receiving tax breaks.
Commercial vs. Private EV Charging Stations
Commercial-grade EV charging stations are available to businesses and consumers alike. However, many private EV owners opt to charge their vehicles by using their home outlets or a home-friendly fast-charger.
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For those who want to start an EV charging station business, commercial-grade systems are more expensive but far more lucrative. Instead of taking 10 or more hours to charge the vehicle, most systems can charge a battery by up to 80% in just 1 to 4 hours. Therefore, these options are far more viable to build a business.
As the EV boom continues, the feasibility and profitability of an EV charging station is evident. With a bit of help from a reliable, reputable clean energy company and a touch of entrepreneurship, individuals can turn a business dream into a lucrative reality.
Want to discuss clean energy? Give our team a call, we are the clean energy company of choice for many businesses nationwide. We will be glad to assist you with all your questions and help you as you plan to move forward.