Introduction
With the world advancing, the trend of electric vehicles is gaining popularity. Electric cars are in great demand as they pose virtually no environmental hazards. The EV business accounts for around USD 500 billion in 2023. With an increase of 14% yearly, the expected amount is 700 billion in 2024 and will be 1800 billion in 2032. The EIA, or Energy Information Administration, gives this estimate. It provides numerical data on energy consumption. The use of fuel-driven vehicles has impacted the environment very badly. More people want electric cars. This has raised the need for EV charging stations and created new business chances. If you own eclectic vehicles, remember that electric cars have existed since 1912. This innovation has made the industry much better.
Gas stations are common in the market, but EV charging stations are becoming popular. The EV charging business is emerging very fast, and there is a need for home, commercial, and public charging stations. The number of charging stations is increasing daily, and there are almost 60k EV charging stations in the US now. Installing a charging station is very beneficial and profitable. The percentage of charging stations has increased by 70% over time.
This article explains the EV charging station market. It covers installing a charging station, choosing the right equipment, and managing permits and legal requirements. It will also help you identify business opportunities.
1. Understand the EV Charging Market
Exploring the market for any product or business means analyzing the cost and benefit of your investment, in the case of the EV charging station business.
- First, you need to know the cost of investing in the business.
- Consider whether you will buy an EV charging station or buy one.
These options are available for your business, as the vast market has 25 million EVs worldwide.
There are four categories in the business for EV charging station
- A charging network functions like a gas station. These charging stations have chargers and provide services to customers. The networks try to accommodate as many consumers as possible.
- Turnkey installers are an excellent option for EV charging stations. The business owner supplies the hardware, software, and installation and handles all necessary permits.
- Service providers are like installers. They also offer ongoing operations, financial advice, and maintenance after installation.
- Consultants in the EV charging business will help the owner choose the right equipment. They won’t own the chargers. However, they are in charge of the hardware and software for the charging station.
2. Ideal Location for EV Charging Station Installation
An EV charging spot at the business site will increase its value and demand. This installation will also increase client satisfaction and customer count. The question of the ideal location for an EV charging station installation is very common. Here is a list of places to install the system to get the most out of it.
Workplaces
Most US employees use EVs, and having a charging station at the workplace is beneficial for business purposes. Most employees are attracted to the job if the workplace has a charging spot on site. It has been observed that people stay at the job as they get the facility to charge their EVs at their workplace.
Malls and Service Buildings
People spend most of their time at shopping malls. Installing a commercial-level 2 station at a shopping mall will generate great revenue for your business.
Similarly, universities, hospitals, and public buildings are ideal locations for installing EV charging stations, which will attract electric vehicle owners to the site.
Multifamily Housing
Installing an EV charging station in a residential apartment building is smart. It can attract more buyers, boost demand, and raise property values. Such buildings usually have this EV charging station that will attract customers.
3. Choose the Right Equipment
The EV charging market is estimated to grow tenfold by 2030. Choosing the right equipment for your needs will help your business flourish overnight.
Software Installation
Picking the appropriate software for the EV charging station business is essential. A charging system management system is required before the EV charging system is installed for business. This software will help you manage the station, sort the registered users, and compatibility with manufacturers.
The software will help you decide whether to use the station for commercial or residential purposes. Installing software from a well-known company can meet business needs.
Compatible Hardware
Level 1 EV Charging Stations
The simplest charging stations have the lowest installation cost and are the lowest-rated level 1 charging stations. They can provide a 3-5 mile per hour charge to the vehicle. These charging stations are unsuitable for commercial use; they are installed in an office or residential area where people can leave their cars for 7-8 hours to charge.
Level 2 EV Charging Stations
A level 2 charging station can simultaneously charge 2-3 vehicles. They are usually installed in commercial areas, provide 10-40 miles of range per hour, and operate at 30 Amps of electricity.
Level 3 EV Charging Stations
Level 3 charging stations are the most advanced. They use DC fast chargers (DCFC), giving you a 400-mile range in just one hour. These charging stations are rare. They don’t work with all EVs and are mainly for commercial use. Their fast charging ability makes them popular for commercial use and at car dealership stations. They are installed on highways where the need is very high.
EV charger retractors are essential components at EV charging stations. They can manage the wire properly and prevent damage to it.
4. Handle Legal and Permits
Specific laws and permits are required before installing EV charging stations. These laws and regulations must be considered before installing the EV charging station.
Legals
When starting a new business EV charging station, the legal act that must be kept in mind is the National Electric Code Article 625; this contains all the legal standards that must be followed when installing the station. This article stated that
- The system’s installation should meet all the needs, such as proper ventilation, proper physical equipment installation, and maintenance of a shock-proof environment. Indoors or outdoor systems can be installed.
- The system’s height must be 18 inches above the floor indoors and 24 inches outdoors.
- The system’s cables must fulfill all NEC standards. Shorter cables are preferable; cables over 25 meters must have a management system like cable retractors.
Permits
- The Alternative Fuels Data Center offers installation guidelines from the U.S. government. This includes a complete list and a permit template that outlines key requirements.
- A business with electric vehicle charging stations must follow ADA rules to ensure that disabled individuals can easily access the stations. The Accessible Canada Act maintains standards equivalent to those enforced by the ADA.
5. Install the Charging Station
You are familiar with all the legal and permit considerations when installing an EV charging station. Now, you can install it without any hesitation; just run some analysis before deciding.
Site Examination
Before you install the EV charging station, check the site first. Make sure there’s parking space for people while they charge their EVs. Clear all obstacles or hurdles so the area is clear.
Cost Consideration
People should stick to a budget that matches their investment ability. Setting up an EV charging station can be costly. The US government has taxed charging station business owners.
Electrical Infrastructure
You should examine the area’s electrical infrastructure before installing the setup without any security or safety concerns.
Marketing Strategies
- Before starting the business, consider where to install the EV charging station. Will that area make money or cover the installation costs?
- The station’s location matters a lot for your business or profit purposes.
Considering these factors and the strategies mentioned, you can set up an EV charging station to generate good revenue.
FAQs
What kind of commercial EV charging station does the customer need?
Business owners should know that customers need Level 2 chargers in workplaces, homes, and malls. These chargers provide 10-40 miles of range per hour. DC Fast Chargers (DCFC) are better for busy areas and highways. They can deliver 150-400 miles of range per hour.
How much does an EV charging station cost?
The upfront expense is relatively substantial. For example, for a level 2 charging station, you must have $1500$, or for level 3, you need to have $10,000$ initially to start the business. However, the system is very profitable in the long run.
Cooperation with Finer Lifting Tools
The top-notch EV Charger Cable Retractors offer great cable management. They include safety features, last a long time, and keep your charging area tidy. Retractors protect cables from harm. They also reduce safety risks. They work well with different EV charging stations. The product has adjustable features and a strong build. This makes it suitable for homes and businesses. Our electric wire retractors can hold weights up to 3-14 kg. The outer diameter of the wire that our retractor can support is about 14.5-42mm. We offer stylish and compact designs for EV charging cable retractors.