Although most EV charging businesses are still on their journey to profitability, there’s never been a better time to dive into the market. That’s because the steady rise in the number of EVs on the road is about to reach the critical mass that will deliver long-term profitability. Some forecasters project that 50% of total passenger car sales in the US will be electric by 2030.

Even if most cars are charged at home, that will still require (at a conservative estimate) one public charger for every 10 to 15 EVs. There’s a modest amount of EVs to charge for now, but in a few short years, the balance will be reversed. There won’t be enough charging stations. 

With that in mind, follow these strategies for building a profitable EV charging business to satisfy customer demand.

Different Business Models

There are 3 types of EV charging business model that are currently delivering success and will continue to do so at a greater scale in the future.

• EV charging as an amenity (often free) for residents or employees.
• EV charging as a marketing tool, to attract customers to your location and enhance your eco-friendly credentials.
• EV charging as a service, where you simply provide the power at a competitive price.

If you’re coming into the sector, it’s important to look at EV charging as more than “topping up the tank” for motorists. It’s also a powerful branding tool, customer satisfaction generator, and searchable feature for putting your business on the map. But you have to start with a clear idea of where the opportunity lies.

Do you simply want to attract new customers to your location, or enhance the experience (and extend revenue opportunities) for those you already serve? Is your customer loyal and returning (it could even be a business fleet you keep charged), or are you competing purely on price and convenience? These will all factor into your strategy and choice of partner.

What Do You Need to Start an EVSE Charging Business?

The Elements of an EV Business

Hardware (leased or owned). There’s a growing range of manufacturers to choose from, but your choice will depend on your customer needs. Level 1 stations are typically for domestic charging. Your customer will usually require a combination of Level 2 AC (for slow or overnight charging i.e., residential properties or offices) and faster DC charging (close to the highway).

Software. Without the software to manage power, payments, pricing, data, and customer access, a charging station would be no more than a power outlet. It is the software platform that creates business opportunities, and you should be looking for an OCPP platform that integrates with the hardware of your choice.

Warranty. No investment is risk-free, so a recommended (but not mandatory) element is a warranty to make sure you’re back up and running fast if anything goes wrong.

Important Choices You Have to Make as an EVSE Business Owner

As with any business venture, it is better to focus your efforts on a specific location and niche to begin with, and then scale according to success.

Select the Right Location

If you’re investing in EV charging stations simply to leverage a profitable markup, it’s clear that you need to be in high-traffic locations where there are already large numbers of EV drivers. A quarter of fast DC charging stations are on public highways, with 16% along interstate highways. Once your pin is planted on their app or map, however, they will include your location on their route planning and be willing to make a detour.

Collaborate to Grow Strategically

EV charging stations can be a catalyst for growth at fleet and even municipality level. Large organizations and municipality-run services (eg. buses and garbage collection) are under pressure to switch to sustainable alternatives. If you can show a track record of reliable service, you’re in a strong position to be considered for more significant charging contracts.

Exploring Additional Revenue Streams

Because EV charging stations lend themselves to increased customer footfall and dwell time, there are ample opportunities for generating complementary revenue streams.

• For a pay-per-use service, where customers pay per kWh, upsell subscription and membership offer to reward loyalty.
• For subscription service members, increase their share of wallet by partnering with businesses that offer refreshments, car valeting, or points that can be exchanged for discounts.

The more you can market your charging station as a destination worth the detour (and not just a “pump” to plug into) the more profitable your business. Don’t forget tax credits and incentives either. The 30C Tax Credit incorporated within the Inflation Reduction Act means you can get rebates on the costs of installing and upgrading equipment.

How to Scale and Grow with White-Label EVSE Charging

White Label Services are popular with customers who want to customize an EV charging solution from a trusted provider to grow their own established brand. It’s a relatively easy way to gain a competitive edge by enhancing the customer experience, demonstrating your sustainability and eco-friendly credentials, and increasing brand visibility. Incorporating EV charging into your business offering means you’ll be showing up on mobile apps EV drivers use to find charging.

The advantage of white label is that it’s a turnkey operation with the potential for accelerated growth. The EV charging management platform works out of the box and packs all the smart features your customers are looking for in a next generation network, and comes fully supported from the onboarding stage.

“Can my business afford to miss out on the shift towards EVs?”. To find out more about setting up your white-label solution, contact EVCHARG>EN today and chat with one of our experts.