Why EV Charging is a No-Brainer For Businesses
Once a relative luxury, EV charging stations are on pace to become a regular feature among everyday businesses and venues. President Biden’s vision alone seeks to increase the 48,000 current charging stations to 500,000 nationwide by 2030. And that’s not even accounting for compounded growth from the private sector.
What’s driving this electrification?
Federal support for electric vehicle infrastructure has steadily expanded over the past few years.
Since 2018, the U.S. Code 20C Alternative Fuel Infrastructure Tax Credit has enabled certain businesses to recover a third of installation costs for alternative fueling options, up to $30,000. While these benefits end on December 31st, 2021, the program represents increasing top-level government commitment to promoting EV charging opportunities.
More recently, a new infrastructure bill proposed to commit over $7.5B towards electric vehicle charging initiatives to accommodate the growing prevalence and needs of electric vehicles. The overall goal will be to make EV use “convenient enough for consumers to consider them.”
Drivers can even claim federal tax credit for the mere purchase of an EV vehicle, with amounts reaching up to $7500.
Perhaps even more compelling than federal incentives are local efforts to promote EV charging stations.
Cities and states across the nation now commonly set building and parking ordinances that require a minimum number of EV charging spaces. For instance, Orlando recently passed one such ordinance mandating that 10% of parking spaces at every commercial and industrial establishment and 20% of those at hotels and multi-residential lots provide EV charging services. States with cities matching these initiatives include Arizona, Washington, Georgia, Hawaii, Massachusetts, New York, Oregon, Florida, and Utah.
Among a myriad of reasons, there are a few exceptionally notable sparks behind EV market growth.
Electric vehicles have become more cost-competitive with greater investment in research and the refinement of manufacturing techniques. Battery costs, in particular, have begun to descend to earth, helping to lower overhead and consequently retail prices.
The aforementioned government programs to make EV travel more accessible and convenient have also supercharged the cost incentive of owning an electric vehicle.
Electric cars not only compete with gas-powered alternatives but even outperform them by certain metrics. Just consider the Tesla Model S, which boasts a 396mi range, a top speed of 200mph, and a state-of-the-art user interface.
Accordingly, dissatisfaction with driving experience formerly common to electric vehicles no longer acts as a barrier to purchase, or at least much less of one.
The original selling point for electric vehicles still holds true - they are better for the environment than traditional fossil fuel vehicles.
Beforehand, this value proposition attracted buyers with the luxury to spend more to reduce their environmental impact. However, decreasing costs allow demographics with lower budgets to afford these vehicles as well.
The Rise of Charging Stations
Federal funding, local legislation, and market trends all help to contextualize another intensifying development in the EV world: the race between EV charging station providers (also known as original equipment manufacturers, or OEMs) to install their units in new locations.
Strengthening governmental incentives and a growing EV market have boosted demand for EV charging stations, especially among commercial venues. Commercial venues now need these stations to satisfy the new EV ordinances, accommodate customers, tenants, and residents who drive electric, or both.
In response, EV charging station providers are competing with each other over commercial venues to use their particular units. The more units providers can implement, the more service fees they can collect from renters - all of which supercharges their profits.
In fact, so promising is the potential for profit that some charging station manufacturers offer installation of charging ports at no fee. The strategy of “no fee” is to gain a competitive edge in the marketplace, which will create enough revenue to more than cover any installation costs.
Expert Installation is a Must
Don’t make the mistake of hiring an in-experienced, un-qualified, or sometimes unlicensed service professional. If you’re looking to go electric, Charge Up USA is ready to help as a one-stop-shop turkey provider EV charging solutions. Charge Up USA streamlines the process of finding the best EV charging stations, and the best installation professionals, at the best price. No need to spend hours researching solutions, electrical contractors, and shopping for quotes, Charge Up USA will guide you through every aspect of the job from start to finish. Most importantly, there’s no cost to you for the service. Whether you’re ready to buy or just researching alternatives, Charge Up USA will ensure that you’re choosing the right EV charging solution to fit your needs. Not sure where to begin? Get your free EV Charging Buyers Guide and begin your journey to electrification.
About the Author
Robb Monkman is a mission-driven entrepreneur who is passionate about making the world a better place. Robb is the Managing Partner of Charge Up USA where he is making an impact by accelerating the transition to electric vehicles (EV) and other electric technologies. Robb is a serial entrepreneur with experience launching multiple hardware and software products at early-stage companies. Robb is an active angel investor and advisor helping companies that are making a positive impact in clean energy, electrification, and IoT.