How much can you make with an EV charging station?

Is it too good to be true? Let's discuss!

Have you noticed a lot more electric cars on the road these days? Your eyes don't deceive you! In New York and on Long Island, EVs are rapidly gaining popularity, contributing to a wild 70% rise in nationwide EV sales in the last year! All these new electric cars are bringing a new opportunity for property owners and managers looking to attract new customers or even bring on a new passive income source. By installing an EV charger on your property, you might be able to earn thousands of dollars a month in charging revenue, not to mention many thousands more in customers to your businesses, all while getting tax breaks on the new installation!

How can a commercial EV charger generate income?

First of all, what is an EV charger, and why should I consider putting one on my property or retail location? Here's a quick summary:

• Electric cars run on batteries which need to be regularly recharged. These batteries are huge (enough to power your whole home!)

• These huge batteries need special chargers, otherwise it would take days to charge your car from a typical outlet!

• You can install either AC chargers or DC chargers on your property. AC chargers provide 6-15 kWh of power, and DC chargers provide up to 300(!) kWh of power!

• AC chargers can often use your existing commercial power, while DC chargers typically need additional electrical service. This depends on your property type and current PSEG service.

• You can easily augment existing parking spaces to fit a new AC or DC charger.

• Commercial EV chargers can be pre-designed to support credit card payments with rates you set yourself!

Once you install an EV charger, there are three main ways it can earn income for your business.

Charging Income

Of course, EV chargers can be a new passive revenue source for your business. Once installed, they require practically no maintenance as long as they are occasionally cleaned and inspected like any other electrical equipment. Most EV chargers charge per kilowatt-hour (kWh).  Here's an example of potential income you can earn:

• Let's say you decide to install 4 AC charging stations which can produce 8 kWH of power each

• Let's assume you charge a $0.20 per kWh profit margin (i.e. above your cost of electricity) to charge at your station.

• Let's assume you have 42% average occupancy per month (i.e. 10 hours per day, on average, per charger, of paid charging time)

If you crunch those numbers, you'll see that you can earn up to $1,920 a month in additional income! This can vary greatly depending on the rates you set, number of chargers you install, and electricity prices for your property. Long Island has quite high residential energy prices, so you may be able to take advantage of your commercial rates to provide a competitive charging rate.

If you decide to install a DC charger, then you can start to make some serious money! While an AC charger can provide about 6-12 kWh of power, DC chargers can provide 50 to 150 kWh of power and are more attractive to people looking for a quick charge at a premium rate (usually around a $0.25 to $0.35 premium above typical base rates). This means you can earn as much as $800 per day for a popular DC charging station, assuming 20-30 cars per day.

Tax Incentives

State and Federal governments are working hard to promote EV adoption to help us all go green, and this is another way you can earn some money with your EV charger. Your charger won't complete pay for itself, but there are incentives from New York State and Federal Corporate Tax Deductions, including up to 50% of the total cost. Please consult with your tax professional to learn more about all the benefits and how much you can ultimately save.

Customer Acquisition

Any serious business knows how important it is to maintain a low cost per acquisition, the money you spend to bring new customers to your business. Advertising can sink thousands of dollars a year to acquire new customers, so why not diversify with an EV charger and potentially earn thousands in free advertising!

Here's why EV chargers bring in free advertising: Most EV owners will use websites like Plugshare to decide where to stop for groceries, a meal, or just a place to stretch their legs on a road trip. When you install an EV charger, you can list your business for free and potentially attract these drivers to visit. A restaurant or retailer can easily earn back the cost of an EV charger by bringing just one incremental new customer per week with an EV charger. Most auto manufacturers will also add your location to the car's infotainment system too as a charging location, meaning more attention for your business at no additional cost. Depending on how much you earn per incremental customer, it may even be better to provide free EV charging instead, as a 30 minute visit may only earn you $5 in incremental charging revenue, but could earn you $10-$20 or more in incremental revenue if that customer visits your store.

What other properties can benefit from EV charging?

The great thing about an EV charger is that almost any kind of commercial property or site can benefit from it, depending on your goals. Even if you're not trying to generate income directly with an EV charger, it will almost certainly indirectly benefit your business:

• Retail shops and malls:

  Earn passive income and build customer loyalty through routine charging visits.

• Office buildings and warehouses:

  Increase employee satisfaction at a small incremental cost with free charging.

• Hotels and BnBs:

  Add new amenities for overnight visits at a small incremental cost.

• Dealerships and service centers:

  Differentiate your service experience by providing free charging during tire and vehicle servicing.

• Restaurants and rest stops:

  Earn incremental customer visits as they stop to charge, use your restrooms, and get a quick bite to eat!

If you're curious about how to get started, let us help! Call Me Electric has installed hundreds of EV chargers for residential and commercial customers all over Long Island, including both AC and DC systems. Give us a call at 631-557-2622 and learn more about how we can make things brighter for you!