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10 Reasons to Invest in EV Charging Stations

June 10, 2023

During the second quarter of 2022, the sales of new vehicles decreased by 20%. However, electric vehicle sales saw a significant increase, with a record-breaking 442,740 electrified vehicles sold, including EVs, hybrids, and fuel-cell-powered vehicles.

The growing concern over high gas prices and greenhouse gas emissions has led to the popularity of EVs. Automakers have been introducing moderately priced passenger EVs to the market, resulting in 33 models available as of mid-2022.

As the demand for EVs continues to rise, the need for charging stations has also increased. Private charging network companies own and operate many public charging stations. To take advantage of this market’s growth, companies and entrepreneurs are investing heavily in EV charging stations, including companies that operate public charging station networks and manufacture EV components.

If you’re considering investing in an EV charging station, here are ten compelling reasons to do so:

1. Accelerating Growth: The Rising Demand for EV Charging Stations Among Consumers

Charging stations are critical to the growing EV market, allowing owners to charge their vehicles while running errands or traveling. For entrepreneurs and business owners, this presents an investment opportunity.

Fear of running out of power before finding a charging station is the primary reason American car buyers don’t purchase EVs. However, new models offer more range, advanced technology, and zero emissions, making EVs increasingly attractive.

Before the current administration introduced substantial tax credits for EV purchases, 42% of Americans surveyed said they would consider buying an electric vehicle. The younger generation is more enthusiastic, with 55% of those aged 18-29 considering purchasing an EV.

The electric vehicle charging station market was valued at $5.86 billion in 2021 and is expected to reach $53.25 billion by 2027. Investing in this growing market presents an opportunity to provide a valuable service to customers, attract new customers, and increase revenue.

Consumer demand for EV charging continues to grow

2. Powering Up: Generous Rebates and Incentives for EV Charging from Governments and Utility Companies

The federal government has committed $5 billion to build a national network of EV charging stations. Over $2 billion in rebates and grants are available to help entrepreneurs get started.

These funds present an opportunity for entrepreneurs to invest in EV charging stations. By taking advantage of these rebates and grants, entrepreneurs can minimize their investment and maximize their returns.

The government’s commitment to expanding the EV charging infrastructure is critical to the widespread adoption of electric vehicles. By investing in EV charging stations, entrepreneurs can contribute to the growth of this industry while taking advantage of the available funding.

The availability of these funds makes it an attractive opportunity for entrepreneurs interested in entering the EV charging station market. With the government’s support, entrepreneurs can provide a valuable service to customers while increasing revenue.

3. Charge Up Your Business: How an On-Site EV Charging Station Can Boost Customer Visits and Revenue

Convenient charging options are a barrier to EV adoption. Entrepreneurs can install chargers at existing businesses to give EV drivers more options.

Businesses where customers stay for a half hour or longer can benefit, including restaurants, bars, shopping malls, hair and nail salons, and workplaces.

Installing an EV charging station can drive business and revenue. Digital maps like Google Maps and apps like Plugshare make it easy for EV drivers to locate charging stations.

Entrepreneurs have an opportunity to contribute to the growth of the EV industry while taking advantage of the benefits of installing charging stations. By providing a valuable service to customers, entrepreneurs can increase business and revenue.

4. Charge Ahead: The Surprising Affordability of Installing an EV Charging Station

Starting an EV charging station business costs vary based on location, station size, and charging components offered. On average, expect to invest $4,700-$6,900 per port for a commercial Level 2 charging station.

This investment covers equipment and basic start-up costs. If you need to buy or lease land, the total cost can increase to $10,000-$50,000. However, owning the property can be very lucrative.

Adding an EV charging station can be a smart investment for entrepreneurs. By providing a valuable service to EV drivers, entrepreneurs can increase business and revenue while contributing to sustainability.

Entrepreneurs interested in starting an EV charging station business should research local incentives, rebates, and grants to minimize costs and maximize returns. With the right investment and location, an EV charging station business can be a profitable venture.

 

5. Simple and Straightforward: The Hassle-Free Installation Requirements for an EV Charging Station

The primary requirement for installing an EV charging station is an easily accessible location with a reliable power source.

Entrepreneurs should check with their utility commission to determine if there are any state regulations governing the EV charging industry. Minimal local regulatory requirements may include obtaining a business permit from the municipality.

The overall process of installing an EV charging station is well-documented and straightforward. By meeting the requirements and regulations, entrepreneurs can provide a valuable service to EV drivers while increasing business and revenue.

(Unsplash.com)

With the increasing demand for charging stations, investing in an EV charging station is a wise business decision. By providing a charging solution, you can attract more customers and differentiate your business from competitors. The installation process is simple, making it possible for entrepreneurs and business owners to capitalize on this growing market with minimal hassle and investment.

6. Plug and Play: Turnkey Franchise Investments for EV Charging Stations

Several EV charging companies offer turnkey solutions that include the charging station, installation, permitting, system design, and software.

WattLogic and Energys are examples of companies providing turnkey EV charging station franchises. Energys provides a website tool to calculate potential profits from owning an EV charging station franchise.

By investing in a turnkey solution, entrepreneurs can minimize the amount of time and effort required to start an EV charging station business. These solutions can provide a valuable service to customers while increasing business and revenue.

a modern EV charging station

7. Power Up Your Profits: The High Return on Investment for EV Charging Stations

An EV charging station business can be lucrative, with a profit margin of 25-50%, depending on location and size.

The ROI for each dollar charged to a customer is between $0.25 and $0.50, depending on actual and allocated business costs.

Monetizing your investment depends on factors such as the number of EVs in your area, location quality, and competition.

Entrepreneurs interested in owning an EV charging station should research the potential profit margins, as well as factors that can impact monetization, such as location and competition.

8. Charge Up Your Portfolio: Opportunities to Own EV Charging Stations are Abundant

To find an EV charging station investment opportunity, start by looking at businesses in the industry. Large companies like ChargePoint may enter into a partnership to use your available property.

Next, consider public places like airports, hospitals, and shopping malls that need an EV charging station on site. High-traffic public locations like these have an increasing demand for EV charging stations.

Finally, talk to business owners, local governments, and other organizations to see if they are seeking investors or public-private partnerships to add EV charging stations to their facilities.

9. Charge Up Your Appeal: How Investing in EV Charging Stations Demonstrates Your Commitment to Sustainability

Surveys show that 57% of consumers are willing to change their shopping habits to reduce their environmental impact. 61% of renters will pay more to live in an “eco-friendly” apartment building.

Installing an EV charging station in your multi-unit dwelling (MUD) can demonstrate a commitment to sustainability and appeal to eco-conscious individuals. Additionally, there are several other benefits of adding an EV charging station to your property.

These survey results highlight a broader trend of people wanting to live, work, and shop at environmentally conscious properties. By responding to this trend and installing an EV charging station, entrepreneurs can provide a valuable service to customers while increasing business and revenue.

10:Powering Up Your Portfolio: Investing in Companies with Charging Networks for Long-Term Growth

Investing in companies that own charging networks, such as Tesla (TSLA) or ChargePoint (CHPT), can provide exposure to the expected growth in charging infrastructure over the coming decade.

To gain exposure to the entire market, investors can look at ETFs such as Ultumus that hold positions in companies like Tesla, ChargePoint, Nio (NIO), Albemarle (ALB), BYD, Rivian (RIVN), Lucid (LCID), Aptiv (APTV), and more.

As the EV industry continues to grow, investing in charging infrastructure can be a smart move for investors looking to profit from this trend. By investing in companies that own charging networks or ETFs with exposure to the industry, investors can contribute to the growth of the EV industry while potentially earning a return on their investment.

Are you interested in learning more about investing in EV charging infrastructure?

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