In the past few years, the EV industry has captured the attention of many people in the auto market with state-of-the-art developments. As a result, the demand for EVs is growing rapidly, and with it comes the rising need for charging stations. This has created huge market opportunities, even for newcomers as the market is yet to be saturated.
In this article, we will elaborate on why and how to invest in EV charging stations.
BENEFITS OF INVESTING IN EV CHARGING STATIONS
Just as every business opportunity is professionally executed, there are many benefits to investing in electric car charging stations. Some of them include:
Large Market Opportunity
Following the continuous and rapid development of technology, as well as electric vehicles, more customers’ attention is being captured. In fact, the International Energy Agency Forecasts predicts that the number of electric vehicles on the road worldwide will reach 125 million by 2030.
As more EVs hit the road, an imminent charging infrastructure problem will arise. This is a huge opportunity that can be capitalized on for steady income.
Government Incentives and Grants
Many government and utility providers offer various incentives and grants, allowing businesses to enjoy additional benefits in the form of rebates if certain requirements are met. These incentives and grants help to offset the cost of installation and make it more affordable for businesses to invest in electric car charging stations.
The most popular incentive focuses on the type of charging station installed. In some locations, businesses that install Level 1 and Level 2 electric car charging stations may receive about $4,000 to $10,000 to install a DC Fast charging station.
Increased Business Opportunities
Nowadays, consumers are more concerned about the ethical reputation of companies. A report by Forbes found that 87% of consumers prefer a company that promotes social or environmental issues. Providing solutions to the charging problems of electric vehicles can attract new customers and generate additional revenue for your business.
For example, a grocery store that installs EV charging stations at its parking lot can attract EV owners who need a place to charge their cars. There is every probability that some or all of them will check out the store while their cars are charging.
HOW TO INVEST IN EV CHARGING STATIONS
Putting your investment in electric car charging stations is a decision that cannot go wrong as the industry is in great need of charging stations.
Discussed below are the steps on how to invest in EV charging stations.
Research Regional Market Situation
The first step in your electric charging station investment journey is to research the regional market situation. This research will help determine the demand for EV charging stations in your region. It will open your eyes to the realities of the market in your area.
To conduct this research, consider factors like the number of EVs registered in your area, the number of charging stations currently available, where the charging stations are located, and the growth of the EV market in your area. This will help you to make informed decisions.
Assess Financial Viability and Return on Investment
The next step in how to invest in electric charging stations is to assess the financial viability of your investment. This has to do with evaluating the cost of installing, operating, and maintaining an EV charging station, as well as the potential revenue you could generate from charging fees.
The evaluation is simple. The overall cost should be lower than the total revenue. This assessment will make you know the Return on Investment (ROI).
Select Proper Types of EV Charging Stations
There are three major types of EV charging stations – Level 1, Level 2, and DC Fast charging. They are explained below:
- Level 1 Charging: This is the least expensive type, but slow in charging. It is easy to install, uses a standard 120-volt outlet, and takes about 12 hours to fully charge an EV. This charging station is commonly used at home and in residential settings.
- Level 2 Charging: This is quite faster than Level 1 Charging but more expensive. It uses a 240-volt outlet and takes about 2-4 hours to fully charge an EV. This charging station is commonly used for public applications.
- DC Fast Charging: Also known as Level 3, this is the fastest and most expensive among the types of charging stations. It uses direct current (DC) electricity and can fully charge an EV in 15-30 minutes. This charging station is commonly used by only high-volume EV owners.
Go Through the Permitting Processes
The next step in the EV charging station investment procedure is to obtain the necessary permits from your state and local government. The permitting process varies depending on location, but it typically involves submitting an application and paying a fee.
Following this due process comes benefits like incentives, grants, and rebates, which help to reduce the overall cost.
Develop a Marketing Strategy
Your investment in electric car charging stations will go to waste if people don’t know about them. After going through the previous steps, develop a marketing strategy that will make people aware of your business.
This can be done by creating a website or social media page. And it could be by partnering with local businesses to promote your charging stations.
RELIABLE WHOLESALE EV CHARGER SUPPLIER IN CHINA
BENY is a leading manufacturer of different eco-friendly EV chargers, including Level 1, Level 2, and DC Fast chargers. They are designed with IP65 dust and waterproof housing, which ensures that they can function optimally regardless of the condition they are exposed to.
With 30+ years of experience and a wide range of knowledge, our high-quality EV chargers are produced to surpass your expectations in terms of service life and functionality.
Following the non-stop technological development happening in the auto market, transportation is gradually transitioning from fossil fuel to electricity. This creates a big opportunity for increased revenue as the market is new and non-competitive.
Are you looking to invest in EV charging stations and would like to find out what kind of charger is best for you? Contact us for professional assistance.