Can I Make Money By Installing an EV Charging Station?
The electric vehicle charging station can be a lucrative business as the demand for EVs is exponentially rising and can bring thousands in charging fees revenue per year. The charging fees are the primary source of income for charging station installers.
There are several other ways to generate revenue from charging stations, like advertisement, sponsorship, and different sources of earning revenue. In this article, we will break down all the lucrative strategies to help make money by installing an electric vehicle charging station.
Can EV charging stations be a business?
Business opportunities and strategies for electric vehicle charging stations can be excellent when used on the right track. They can help earn money from charging fees and other forms of generating revenue.
The charging station framework can be a lucrative business since EV drivers can hardly charge their electric vehicles at home, which is limited to charging rates of about three to forty-six miles of range per hour.
It might be sufficient for those EV drivers who only need to top up for short mileage. But to cover longer mileage and road trips, this charging will not be enough to cover the distance. Thus, they will go to charging stations to charge the vehicles.
An electric vehicle charging station with fast chargers like DC chargers can overcome this problem. DC chargers can provide fast charging to vehicles, thus saving time and money in both ways.
EV charging stations with DC chargers can add to a high maintenance and installation cost, but they can bring profits depending on the type of business and situation. Here are a few examples of how to make the electric vehicle charging station business more profitable and turn it into a revenue stream:
Set the right customer charging fees for customers and visitors
Before starting the EV charging business, the installers must figure out how to set the strategy to bill the charging. They can fix profitable charging fees and can change them whenever they need to change according to the demand for electric vehicle chargers.
Boost the average duration of each interaction
Customers are more drawn to fast chargers as they help to save customers time and reduce their waiting time. Installing an EV charging station with DC chargers can be expensive, but it also generates high revenues from charging fees, and customers like to spend money when they find efficiency.
It will increase customer interaction, and they will frequently visit the EV charging station, increasing the average duration.
However, often customers do not come to charge their EVs from 0 to 100 percent. Thus a standard Level 2 (AC) charging option can help such customers and add extra mileage to their batteries based on their demands.
Also, in some cases, customers benefit from both AC and DC chargers combinedly. Either way can provide customers with convenient solutions to charge their EVs, encouraging them to spend more money and time at the EV charging stations.
Attract more customers to get more profit
EV charging station installers can add to the profit of earning revenue from their charging infrastructures. They can commercially utilize the customers’ waiting time by investing in small food kiosks or coffee shops, which yield more revenue by adding more profit margin. The innovative idea can also attract customers, since it offers them free space to spend time and wait while charging.
How can EV charging station owners monetize their EV charger network?
Several technology solution providers offer EV charging infrastructure effective measures to monetize their charging networks and explore the lucrative options before making choices. All these points are a must to monetize the EV charging station and generate revenue:
Charging model of the EV charging station
The business model is crucial to determine whether the customers are more engaged in the infrastructure. Despite the type of service charging station owners chooses, they should set up an innovative business model to attract customers and earn more revenue.
The typical business model for most customers is to pay per minute for charging the EVs, and most customers appreciate this business model.
Business owners change their pricing model according to the market demand for chargers and other scenarios. They modify their charging fees based on the popularity of the duration and day.
The charging fees per minute might be more on summer days or weekends than on casual days for customers to charge their vehicles. The fundamental notion of this model is supply and demand, based on the primary concept in economics.
Payment options for customers
Diverse payment options can be a solution to facilitate customers while they can choose their option for charging the fees. Payment through any charging app, using an RFID card or key fob, and paying through contactless payment or card reader are all the best solutions any EV charging station can provide to their customers. All these approaches follow a pay-as-you-go strategy.
Secure the Charging Stations Funds Transfer
The charging owners must follow specific guidelines for transferring funds into their bank account. They need to understand how these transfers work before they choose the service they will be using. The ease of monetary transfer will significantly affect the satisfaction of the investment.
All these above points are beneficial to convert an EV charging station into a revenue stream and earn profits.
The market for EV charging stations has significantly changed over the past decades and has turned into a lucrative business option for many due to the rising demand for electric vehicles. All the above factors play a significant role in inspiring business owners to invest in installing electric vehicle charging stations and generate revenue by monetizing the infrastructure.