The ultimate guide of Commercial EV Charging Station Cost

I. The Various Forms of Electric Vehicle Charging Stations 

Believe it or not, the production and use of EVs have left the realms of science fiction, as they have recently enjoyed significant adoption by the automotive world. However, there are indications that drivers and owners of EVs continue to struggle with locating reliable charging options as the acceptance for EVs continues to increase. 

However, with the diversity of EV charging stations in the market and different manufacturers claiming they’re better than their competitors, it can be pretty daunting to identify a suitable one. Thankfully, we have all you need to know where to choose the most suitable charger for your EV. 

Frankly, you only need to understand the three primary levels of EV chargers and worry less about EV charger manufacturers, as this is often less significant than the level of charging stations. For home charging, the level 1 charging station comes in handy. Level 2 is for home and commercial use, and level 3 is strictly for commercial purposes. Now let’s dive in deeper. 

For the level 1 charging station, you often get a plug-and-play set-up comprising a charging connector plugged into a 120V home power socket to charge your EV. This 120V guarantees its home-only use and, consequently, a slow charging rate that can take anywhere between 8 to 24 hours to charge most EV batteries. However, its main advantage is its economy since it is often used to charge EVs overnight during off-peak electricity usage, which incidentally cost less at this time of the day. 

Level 2 charging station is a versatile option for both commercial and home charging. Unlike level 1 chargers, this one uses a higher voltage of 240V, giving it a faster charging rate than the level 1 charger. It fully charges most batteries in 3 to 5 hours making it the darling of most EV owners. It also installs comfortably indoors or outdoors and can be mounted as a wall or pole unit. But sometimes, you need to supplement it with a portable electric car charger, especially if you’ll be driving long-distance in areas with very few charging stations. You don’t want to be hit with “charge anxiety.” 

The final EV charging station type is the level 3 type which often assures EV drivers of a swift charging experience, considering that it uses a 480V for charging. This capacity is higher than the two preceding chargers combined. Also, its power output ensures that EV owners can top-up their batteries from 0 to 80% capacity in less than one hour. Hence, its recommendation as a charging station of choice for commercial EV charging. 

II. Setting Up a Commercial EV Charging Station: Cost Implications

One can only imagine how daunting setting up a commercial electric vehicle (EV) charging station feels. Considering factors like cost, technicalities, and installation can be truly nerve-wracking. Nevertheless, considering the opportunities that accompany the massive appeal and transition by many vehicle owners, it starts to feel exciting if you think of it as an investment in the future. Plus, you’ll be making a significant contribution with a chance to partner with other sustainable transportation solution providers. 

But enough with this talk about its potential. What may bother most individuals is the cost to establish a commercial EV charging station. Giving EV owners and drivers what they want – a place to refuel their green rides on the go will require careful consideration. Also, you need to recognize that putting up a commercial charging station is not cheap.

The first and perhaps the most crucial consideration is the cost of charging equipment. This factor controls the most significant part of the cost. For instance, a simple level 1 charging station will be significantly less expensive than a level 3 fast charging station. Also, depending on what type of charging station you intend to install, you might be looking at parting with a few thousand dollars, or sometimes it can be tens of thousands of dollars. 

But you are just starting.

The installation cost is yet another critical consideration often dependent on specific parameters, including the sophistication of the charging equipment and installation difficulty. Additionally, necessary permits, licenses, and inspections will be part of this process. 

But that’s not all.

The overall cost will be significantly impacted by expenses like maintenance, utilities, and repair costs that are often not as much as other costs in the beginning. However, as time passes, they add up to a high cost, and it will be best to consider them in the overall cost from the get-go. 

So, what’s the bottom line? It may take between $10,000 to $50,000 and over if you consider the factors mentioned above in your estimation. Still, the growing requests and transition from fossil-fueled to electric vehicles make it a wise investment move that can continuously generate a stable income stream. It also contributes to a cleaner environment.

Governments are also trying to encourage investors in the commercial EV charging station sector by giving tax-free incentives and rebates that you can take advantage of to reduce the set-up cost. In the end, the cost of installing a commercial EV charging station is not enough reason to abandon the project, especially if you have a passion for joining Top EV charger companies in the industry. 

III. Influencing Factors Behind Installing an Electric Vehicle Charging Station 

While it is a fact that EV charging stations are going to be dominant in the future, the adoption of EVs continues to skyrocket. Still, you can’t help but wonder why installing one is so pricey. But you are not alone in this thought as individuals often like to know the factors contributing to this high pricing. Here are the major contributors to the cost of installing EV charging stations. 

1. A. Approval Fees – Approvals from regulatory and local authorities can include permits, inspections, certificates, and letters to proceed. These approvals are often the first steps in the installation process. Getting them will usually cost you a significant amount once you add them.
2. B. Soft Costs – While they are non-concrete costs, expenditures like legal fees, consultation charges, and planning costs can significantly contribute to the overall expenses. Also, after installation, there are others like advertising, branding, and marketing which can also be huge. 
3. C. Material Costs – This cost includes additional materials and accessories required before, during, and after the installation of the EV charging station. Electrical cords, cable trays, conduit materials, socket boxes, and screws are all part of material expenses. 
4. D. Cost of Infrastructure – Either you’re remodeling an existing structure to fit for purpose or purchasing a site for a proposed new structure, you’ll be committing a substantial amount for infrastructure. Concrete bases, pavements, and meter installations are all included in the infrastructure cost. 
5. E. Manpower Fees – The cost of employing certified and experienced EV charging equipment installers and other specialists, such as concrete contractors and electricians, comes under manpower fees. 
6. F. Technology Costs – These fees often depend on the sophistication level of the charging station you plan to install, and they can vary considerably. However, software plans, apps subscription, and SaaS company engagement often fall under this expenditure category. 
7. G. Power Management Costs – Measuring the quantity and quality of the power supply coming into the charging station requires special devices like meters and indicators. They also help monitor electricity usage and billing. 
8. H. Maintenance Fees – Maintaining a facility is the only way to ensure it continues to function optimally. The quality monitoring and periodic inspection of EV charging stations are often done by a paid professional to identify if any part needs replacement. 

Ultimately, you don’t want to miss out on any important consideration in ensuring that you accurately estimate the cost of installing your commercial EV charging station. Considering that it is a significant investment, proper planning will ensure that your investment continues to make a good profit. Just ensure you understand every factor contributing to the overall cost so you’ll be better informed if to go ahead with the investment. 

IV. Monetizing EV Charging Stations 

In reality, you should be aware of every available opportunity and method for making a profit as an investor in the EV charging sector. Hopefully, you don’t want your EV charging station project to be an exercise in futility. The following are some ways you should explore to turn your EV charging station into a money-making machine. 

The first is obvious. Charging EV owners and drivers that come in to charge their batteries is expected since you’re not a charity. It is the same model as a gas station, only this time, the cars are electric vehicles. Charging per range or per kWh are two ways to set up your billing system. 

A second income generation opportunity for your EV charging station is through marketing and advertising opportunities. Your EV charging station can become the advertising medium for businesses and brands looking to get more eyeballs on their adverts. Put a billboard or banner hanger out for rent within your charging facility. 

Thirdly, you can partner with EV manufacturers, or sponsorship deals and endorsements with automotive companies and car makers can often yield more profits. All you need is to ensure you provide quality, accessible, and convenient charging services to customers, and they’ll come looking for you. 

Conclusion  

In conclusion, even though it takes substantial money to set up a commercial EV charging station, it is still a sensible investment. Being in the early stages of EV adoption and the continuous increase in the transition to EVs invests a strategic one. Nonetheless, careful consideration of the major factors influencing the cost of establishing a charging station is of utmost importance. Naturally, billing EVs that come to charge will make you profits if you do your calculations correctly. Even so, you can find creative ways to make more money, including advertising opportunities and partnership and endorsement deals with EV manufacturers and car makers.