With nearly 14 million new electric cars hitting the road in 2023, the demand for electric vehicle (EV) charging stations is growing faster than ever. If you've considered installing EV chargers at your business, now is the time to act. This guide will help you understand everything from choosing the best business model to securing funding so you can tap into this booming market.
Electric vehicle sales were up 35% in 2023 alone and continue to break records. With more than 40 million EVs now on the road worldwide, there's an increasing need for accessible charging infrastructure. This represents a fantastic business opportunity for property owners, as EV chargers are not yet as ubiquitous as gas stations, leaving plenty of room for growth. AmpUp’s guide will walk you through critical steps to get your charging station off the ground.
Choosing the Best Business Model
There are several ways to structure your EV charging business, depending on your resources and goals:
Owner-Operator Model: You own and operate the stations, giving you maximum control and potential profits. This requires significant investment but is ideal if you want a long-term asset.
Franchise Model: Partner with an established charging network for a lower-risk entry. You’ll benefit from a proven system and brand support.
Host Model: Rent space on your property for EV chargers while a third-party operator handles installation and maintenance. This is an excellent option for extra income without the operational hassle.
Public-private partnership: Collaborate with government agencies to secure funding, especially in underserved areas. This option is perfect if you’re looking to align your business with public sustainability goals.
Subscription or Membership-Based Model: Offer drivers a subscription plan for unlimited charging or discounted rates. This model provides a steady stream of recurring revenue and builds customer loyalty.
Charging Network Model: Ideal for those who own multiple properties, this model focuses on setting up charging stations at different locations maximizing revenue potential through flexible pricing and market density. Success depends on efficient station management, strategic location planning, and ensuring reliable charging services. AmpUp can help with these factors.
Understanding EV Charger Levels
EV chargers come in three primary levels, each with different capabilities:
Level 1: This device connects to a standard 120V outlet and charges about 3 miles per hour. While easy to install, it is too slow for most commercial uses.
Level 2: This charger requires a 240V outlet and can charge up to 30 miles per hour. It requires professional installation and comes with dedicated software for faster charging and automated billing. It's perfect for workplaces, retail spots, or apartment buildings where people park for extended periods.
Level 3 (DC Fast Chargers): These chargers use direct current and provide the fastest charge—up to 124 miles per hour. They require advanced hardware and electrical infrastructure. These chargers are ideal for high-traffic areas like amenities off highways and can fully charge a vehicle in as little as 20 minutes.
EV Connector Types
When selecting chargers, consider which connector types to support:
Funding Opportunities
For installing EV chargers, various incentives, rebates, and tax credits are available. AmpUp is approved with 50 utility programs and can help identify opportunities for funding your charging station.
Maximizing ROI for Your EV Chargers
Adding EV chargers can attract customers, increase property value, and even open new revenue streams. To maximize your return on investment (ROI), match your charger level to customer needs:
Location is critical – do some market research to understand demand in your area. AmpUp can assist with everything from site planning to securing permits and rebates to installation.
Maintenance and Management
Keeping your charging station in top shape is crucial for customer satisfaction and steady income. Regular maintenance includes:
Navigating Regulations
In the US, you’ll need to comply with the National Electric Code (NEC) Article 625, which covers safety standards for EV chargers. AmpUp can help ensure your setup meets all national and local requirements, including California’s CTEP standards.
Important Industry Terms to Know
Open Automated Demand Response (OpenADR): Helps balance energy demand during peak periods by facilitating communication between operators, utilities, and energy management systems.
Open Charge Point Protocol (OCPP): Enables communication between chargers and management systems, improving interoperability. It's hardware agnostic, enabling EV drivers to move between networks without downloading multiple apps or creating new user accounts. AmpUp software is OCPP-compliant.
ISO 15118: A global standard for vehicle-to-charger communication, enabling seamless billing and plug-and-charge capabilities.
NEMA 4 Enclosure: Protects EV chargers from outdoor elements, ensuring they withstand dust, dirt, and water. Its NEMA 4X rating makes it particularly suitable for harsh environments.
Ready to Get Started?
Launching an EV charging station business can be a great way to diversify your income while contributing to a more sustainable future. AmpUp is here to assist with every step — from choosing a business model to hardware and securing funding to installation and maintenance.
Let’s get started and expand the EV charging network together.
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