From the Tesla to the Rivian and everything in between, it’s no secret that Coloradans love their electric vehicles (EVs). But with so many EVs on the road, many commercial business owners are pondering the question, “Is it profitable to put in an EV charging station?” Like in any business venture, you need to weigh the pros and cons of whether or not your business plan and location where you’d like to put an EV charging station would be well received, but the short answer to this question is yes. At King Electric LLC, we help install both commercial and residential EV charging stations. Let’s dive into some of the ways that Colorado business owners can turn a profit with EV charging stations.
Is it profitable to put in an EV charging station? Three ways local business owners can make a profit with EV charging stations
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Charging customers based on energy consumption
When considering the question, “Is it profitable to put in an EV charging station?” it’s important to consider the business model you want to use once you purchase your EV charging station. One of the ways that you can start making money after the initial investment in your EV charging station is by charging based on the amount of energy that is being consumed. For instance, you could decide to charge $0.50 per kilowatt consumed. If a car needed 25 kilowatts during the charge, you’d make $12.50 during that session.
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Charging customers based on time spent at the EV charger
Another thing that you can consider when thinking about the question, “Is it profitable to put in an EV charging station?” is whether to charge customers based on time spent at the charger. For example, you may decide to charge customers a flat rate of $2.75 per hour to charge the vehicle. If it takes a customer 3.5 hours to charge, then you’ve made a profit of $9.63 for that customer. To be profitable, it’s a good idea to compare other local business owner’s pricing to be competitive and get an idea of how much you want to charge.
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Charging customers a combo of time and energy consumption
The last thing you should consider when pondering the question, “Is it profitable to put in an EV charging station?” is charging customers based on both time and energy consumption. This can be a great way to reduce the hourly charge rate while keeping customers from hanging out too long in a spot after their vehicle is already recharged.
While ultimately you need to determine the answer to the question, “Is it profitable to put in an EV charging station?” based on the location, traffic, and other factors, it’s worth creating a business plan to find out. We hope that you’ll consider working with King Electric, LLC, if you decide to jump into the world of running an EV charging station business! Still looking for more reasons why you should start an EV charging business? Check out these 12 additional reasons below.
- Attract Eco-Conscious Customers:
Installing an EV charging station demonstrates your commitment to sustainability. With an increasing number of environmentally conscious consumers, offering electric vehicle charging can attract a new demographic of customers who prioritize businesses with green initiatives.
- Enhance Customer Experience:
Providing EV charging stations offers convenience to your customers. They can charge their electric vehicles while shopping or dining, creating a positive and convenient experience that sets your business apart from competitors.
- Tap into the Growing EV Market:
The electric vehicle market is rapidly expanding. By investing in charging infrastructure, you position your business at the forefront of this trend, attracting tech-savvy and forward-thinking customers who have embraced electric mobility.
- Increase Dwell Time:
EV charging stations encourage customers to spend more time at your business while their vehicles charge. This extended dwell time presents additional opportunities for sales, whether it’s additional purchases, services, or simply more time spent engaging with your brand.
- Government Incentives:
Many governments offer incentives for businesses to install EV charging stations, ranging from tax credits to grants. Taking advantage of these incentives not only helps offset installation costs but also showcases your commitment to corporate responsibility.
- Corporate Image and PR Boost:
Operating an EV charging station aligns your business with the latest environmental initiatives. This positive image can lead to increased media coverage, social media attention, and word-of-mouth promotion, enhancing your overall brand reputation.
- Future-Proofing Your Business:
As the world transitions towards sustainable energy solutions, integrating EV charging into your business model ensures you remain relevant and prepared for future changes in consumer behavior and government regulations.
- Collaborate with Automakers:
Partnering with electric vehicle manufacturers can open up collaboration opportunities. They may promote your business to their customers or provide support for installing and promoting charging stations, creating a mutually beneficial relationship.
- Community Engagement:
Offering EV charging stations fosters community engagement. It shows that your business cares about local and global environmental issues, building a positive relationship with the community and attracting environmentally conscious customers.
- Monetize Charging Services:
You can generate revenue by charging a fee for using your EV charging stations. This additional income stream can contribute to the overall financial success of your business while offering a valuable service to electric vehicle owners.
- Competitive Advantage:
Being an early adopter of EV charging infrastructure in your industry or region can give you a competitive edge. It sets your business apart and positions you as an innovative leader in your sector.
- Employee Satisfaction:
If your business has a workforce, providing EV charging stations can enhance employee satisfaction. It demonstrates a commitment to sustainable practices and supports employees who drive electric vehicles, contributing to a positive workplace culture.
Want another reason why you should consider working with King Electric LLC for your EV charger installation? Check out this 5-star review from our recent customer, Craig Ehlke.
“Tony did a great job. He asked what I wanted done, he told me how he could do it, did the work, and explained everything I needed to know. He even mounted the EV charger to the wall and plugged it in. We tested that it would charge my car before he left. I am very pleased.”
King Electric, LLC is a Qmerit Certified Partner. Only select electrical service providers earn the exclusive Qmerit certification, a symbol of excellence in electrification. King Electric, LLC, is located in Fort Collins and serves Fort Collins, Greeley, Windsor, Loveland, Wellington, Johnstown, Milliken, Timnath, Severance, Longmont, Firestone, Boulder, and surrounding areas. Call 970-829-5464 or contact us for more information about our services or a free estimate.
