EV charging can be a lucrative investment for your business, and charging fees can bring in thousands in revenue per year, depending on your situation and type of business.
This article will break down different charging fee strategies, and includes a table of gross monthly revenue estimates based on a variety of situations and locations that include (and combine) AC and/or DC charging stations, by looking at multiple common EV charging behaviors.
Click here if you want to drop down the revenue estimate table immediately.
Beyond direct revenue, EV charging stations can also help attract new customers by putting your business on the map, increase the time they spend at your location, unlock cross-selling opportunities, and enhance your sustainability credentials.
Installing EV charging stations today is about more than just preparing your location for this shift in transportation—it’s also a clearcut path to attracting more customers and generating more profit. Below are a few examples of how adding public EV charging can make your existing business more profitable, as well as become a revenue stream all on its own.
In today’s competitive landscape, businesses must think of creative ways to attract customers while also boosting the value of each transaction. Transforming your location into an EV charging destination is one of the simplest ways to do just that.
Once EV drivers stop to charge, there is an obvious cross-selling opportunity for add-on products and services. Whether it’s a rideshare driver recharging during a lunch break or a little league coach topping off his battery while getting snacks for the team.
EV drivers will be more willing to visit and spend time at your location if you offer EV charging.
Depending on the type of charger you choose, EVs can take anywhere from a few minutes to a couple of hours to charge (depending on battery size). For shops, restaurants, or gas stations, a fast (DC) charging solution is an ideal choice, charging even the largest EV batteries in under an hour.
However, since most EVs coming to your location aren’t looking to charge from 0-100 percent, a standard Level 2 (AC) charging solution can also suit most driver needs, allowing them to add ~25 miles of range per hour. In many cases, a mix of AC and DC charging stations is the best solution.
Either way, by offering your customers a convenient charging experience, you also encourage them to spend time and money at your location while they wait.
Our research, in partnership with Ipsos, found that EV drivers are more educated, wealthier, and younger than the average population. With more disposable income than gas-car drivers, your EV-driving customers will not only spend more time at your location but also purchase higher-end goods and services every time they visit. Plus, these drivers are likely to turn into loyal, repeat customers once they know your business offers this valuable service.
According to the EY Mobility Consumer Index, 52 percent of car buyers are considering an EV for their next purchase. As a consequence, locking in your location now as one of the places that provide EV charging could turn your business into an often-frequented EV charging destination.
EV charging stations also put your business on the map—literally. Popular navigation sites like Google Maps or Waze, and dedicated charging apps such as PlugShare feature interactive maps that enable drivers to locate nearby public charging stations. By having charging stations at your site, you can boost your brand visibility on these platforms and attract new customers.
Plus, with customized charging stations that display your brand colors or logo, you can drastically improve your corporate image by letting everyone who sees them know that your organization is openly committed to a more sustainable future.
Environmental concerns are increasingly top-of-mind for your customers. By having charging stations on your property, you can establish your business as an eco-conscious organization—and even earn some prestigious sustainability certifications for your location (LEED, GBB, WELL).
Attracting new customers, earning brand loyalty, and increasing the time (and money) spent at your location are all excellent examples of how EV charging can drive profitability. But the most obvious way EV charging can boost profits is the revenue earned from the stations themselves. Depending on the business model you choose, you can generate additional income by setting charging fees, and your customers will be more than happy to pay them.
Yes, they can definitely be profitable. EV charging is a service drivers are willing to pay for, especially if it is fast charging. Of course, how profitable it is, depends on the specifics of your situation, location, and business.
There are a few primary ways you can structure pricing on your charging stations—it really depends on what you want to get out of your setup. You can also test out different strategies to find which works best for you. By having an overview of your stations’ pricing and energy usage via your charging management platform, making adjustments to your setup is as easy as updating a few settings.
Before you can start earning revenue from your charging stations, the first thing you need to figure out is how you want to bill for charging. As the charging station owner, you can set your own charging fees and adjust them at any time. This may include a fixed session start or connection fee and a variable rate for the energy used.
One common practice is to simply charge the cost of energy being used (i.e., $0.15/kWh). You also have the freedom to define your own markup (i.e., $0.35/kWh). So, if a car pulls up and needs to charge 25 kWh, that’d be:
25 kWh x $0.50/kWh = $12.50.
If you’d rather set a fee based on time, you can implement a flat hourly rate (i.e., $2.75/hour). So, if the station is charging at 7.4 kW, and the car needs 25 kWh to recharge:
25 kWh / 7.4 kW = ~3.5 hours.
From there, just multiply the time plugged in by your hourly rate to get the estimated revenue:
~3.5 hours x $2.75/hour = ~$9.63 total.
Some sites combine the two forms of charging. For example $0.45/kWh + $0.30/hour. This helps to reduce their hourly rate while still ensuring guests don’t “camp out” in a spot when their car is fully recharged.
Disclaimer: These prices may be higher due to the current energy crisis.
It’s important to note that consumers expect different energy prices depending on the type of charging your stations offer. Commercial AC charging tends to be cheaper and can take around four to six hours to fully charge a vehicle, depending on the model. DC charging prices are typically higher, as fast charging allows drivers to spend less time plugged in (usually between 15 minutes to an hour).
The amount of revenue you can earn also depends on your location type and how often your stations are utilized. At hotels, for example, guests typically park for eight to 12 hours overnight while they sleep. In this scenario, AC charging stations would be the ideal investment.
At rest stops or gas stations, on the other hand, customers usually park for 15-30 minutes while grabbing a snack or coffee. In this scenario, DC fast-charging stations would be more suited, with a quick enough turnaround time to allow all your customers to charge quickly and get back on the road.
To give you a ballpark idea of how much monthly revenue you can make from offering EV charging, here’s a breakdown of some common scenarios and the estimated revenue of different charging scenarios.
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How much revenue can you earn from EV charging per month?** |
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Your visitors are looking for charging |
During a coffee break |
On a short shopping visit |
While eating a meal |
During part-day parking |
During the day or overnight |
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Estimated parking/ |
15-30 mins |
0.5-2 hours |
0.5-2 hours |
4 hours |
8-12 hours |
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EV |
2 DC chargers |
2 DC chargers |
4 AC chargers |
20 AC chargers |
8 AC chargers |
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Estimated gross revenue from EV charging per month** |
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Standard location with lower utilization |
$2,640*** |
$3,000*** |
$1,680*** |
$6,300**** |
$4,200***** |
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Daily station usage |
DC: 4X |
DC: 1 |
DC: N/A |
DC: N/A |
DC: N/A |
|
Popular location with higher utilization |
$10,560*** |
$6,000*** |
$3,360*** |
$12,600**** |
N/A |
|
Daily station usage |
DC: 8X |
DC: 2X |
DC: N/A |
DC: N/A |
Due to longer charging times, stations are not used more than once per day |
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*Actual infrastructure varies depending on the site // ** Excluding any operator fees applicable. This table is only an example and may not reflect actual gross revenue earned at a specific location. // ***Calculations are based on the assumption that the DC kWh consumption will be 40 kWh with each charging session at a cost of $0.55 per kWh, AC 20kWh consumption with each charging session at a cost of $0.35 per kWh // ****Calculations are based on the assumption that the AC kWh consumption of 30 kWh per charging session at a cost of $0.35 per kWh // *****Calculations are based on the assumption that the AC kWh consumption of 50 kWh per charging session at a cost of $0.35/kWh. |
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You can also set different charging rates for various customer groups. For example, you could use a stratified approach where some guests pay less than others (i.e., discounted EV charging for rewards members).
From cross-selling opportunities to generating its own revenue, EV charging is a great way to bring in some new business—and it’s only going to get bigger.
If you’re considering installing EV chargers at your business, our latest commercial EV charging solutions offer easy ways to scale up monetization and allow you to stay in complete control with its connected and smart charging features.