The transportation sector today has made significant strides compared to ten years ago. This is particularly due to the rapid widespread adoption of electric vehicles (EVs) across the globe. Findings from Our World in Data reveal that out of four cars sold in 2023, one was an EV. Anyone with business acumen can notice that this surge presents electric car charging stations as a business opportunity. So, why not harness it?
In this blog post, we look at various ways to make money with EV charging stations, how to start the business, and the equipment you need. So, installing an EV station can significantly boost your profits if you’re a restaurant owner, running a convenience store, or any other service that attracts a high influx of drivers. Let’s dive into how to do that.
How to Expand Your Revenue Streams with EV Charging Stations
Wondering how to make money with a commercial EV charging station and expand your revenue? You can do that in several ways. The first and most obvious is to charge customers when they juice up their charge directly. Another way is to increase the number of customers for your other businesses near the charging station. Let’s review these options in detail.
1. Pay-Per-Use Charging
Once your charging station is up and running, the first and easiest way to make money is to bill drivers for their use. This works well in urban areas with high demand for EV chargers, and customers are ready to pay for the service on the road. A 2020 E Source survey in the US and Canada found that EV drivers were prepared to part ways with $3 for every hour of charging. 12% of these customers were prepared to pay $4 an hour, even when it would have cost $0.75 per hour only when charging at home.
You can charge a premium for faster service if you’re using DC fast chargers like the ones from Charge Rigs (Omega and FLEXX). While it can cost a fortune to set up this investment, the profit margins are undoubtedly worth it.
2. Subscription-based EV Charging
The pay-per-use model is profitable, no doubt about that. But not everyone likes it. So, your charging network should be able to cater to clients who prefer monthly or annual subscriptions. These are particularly frequent or heavy users, like package delivery businesses. Invest in management software that can handle all these modes of payment to make it more convenient for customers to choose.
3. Increase your Business’s Foot Traffic
EV charging stations increase foot traffic and customers’ time in surrounding businesses. Especially when the EV adoption rate in the community is high. Imagine your restaurant or store being closer to an EV charging station in an area with a high adoption rate. This can lead to more sales and profit for your business. Owning all these businesses can lead to better customer satisfaction rates and higher retention and marketability of your brand.
4. Advertising and Partnerships
This isn’t a direct revenue source coming from the charging station. The revenue comes in when stations, particularly those in high-traffic zones, offer space for digital advertisers. You can partner with local businesses to host their billboards and other promotional material on your space at a fee.
5. Offer Premium EV Charging
Another way of boosting your EV charging station’s profit margin is to provide an efficient charging service that EV drivers can rely on. But that should come with higher fees, which most EV drivers are willing to pay.
Choose an established EV charging industry leader like Charge Rigs to help you meet your premium customers’ expectations. One move that can work from a strategic point is to have both Level 3 DC fast chargers and Level 2 chargers in one station. This ensures you cater to the needs of both customer categories and create a robust setup.
Charge Rig’s Omega Fast Chargers have up to 320kW output, a modular design, touchscreen display, and dual output for NACS and CCS1 connectors. They are ideal if you’re considering setting up a permanent charging station that is future-proof.
But if you’re thinking of a mobile charging setup, Charge Rig offers FLEXX Mobile DC Fast Chargers. With a 120kW output, they can easily be deployed anywhere, including festivals, roadside stops, parking lots, and even off-grid spots.
6. Implement Tier Pricing Plans
Just like other businesses, pricing stands between making a kill and swimming in losses. Thinking about how to make money with EV charging stations through pricing? Embrace a tiered charging pricing plan, one of the most commonly used practices. With this model, the pricing varies depending on the charging speed and time.
For example, during peak hours, everyone wants to charge faster and keep moving. Set higher charging rates during such times. This will optimize the station usage and help you manage the demand efficiently.
Offer flexible pricing using a charging app to enhance your customers’ experiences. When they receive real-time notifications on pricing and availability, they can make informed decisions. And that is a nice way of nurturing loyalty in them.
7. Market Your EV Charging Business Online
We’re in a digital era, in a digital world. That means there are so many digital channels and avenues you can use to promote your business. Face marketing head-on; capitalize on local SEO and list your website on EV charging apps like ChargeHub and PlugShare. Also, create Google My Business listings and partner with local businesses for promotions like “Get 20% off coffee while you charge.” People love such perks.
What’s the EV Charging Station Profit Margin?
After setting up your business and promoting it, it’s time to start raking in profits, provided it’s located in urban centers with high EV adoption rates. But how much profit should you expect? Depending on where your station is, energy costs, and usage, profits can range between $3,000 and $20,000 a year per unit. This is after covering overhead expenses.
The average is between 20% and 40%. But this is subject to change, especially if you have a fast charging EV station, profit margin can range for chargers located in urban centers or near highways. With the dynamic pricing approach, you can maximize your profits during peak hours by charging higher for fast chargers.
Is it a Good Idea to Franchise your EV Charging Business?
Yes, it is, especially if you want to jump right in without reinventing the wheel. If that’s the route you’re thinking of, EV charging station franchise cost can vary according to your business location, provider, and the equipment specs. For a setup that includes the chargers, installation, management software, and brand support, you can expect to spend something around $50,000 to $150,000.
That is no pocket change, but it is peanuts compared to starting a McDonald’s. Charge Rigs offers partnership programs that can help you get in on the action without drowning in logistics.
Take Advantage of Government Grants
Is it free money? Yes, please. Governments worldwide—from the U.S. to the UK to China—are investing in EV infrastructure. These funds come in tax credits, installation subsidies, or even complete reimbursements.
For instance, the US NEVI Program offers up to 80% funding for eligible EV charging projects. If you’re in the UK, the OZEV grants allow you to slash thousands off your startup costs.
The point here is, don’t fund it all yourself if the government is willing to chip in.
Final Word: The Future Is Electric, and Profitable
The shift to electric vehicles is happening fast, so it’s a question of when, not if. Every entrepreneurial mind can see this and start researching how to make money with EV charging stations. By positioning yourself in the EV charging market now, you’re not just investing in a business but getting ready for the massive shift in the transportation sector.
Companies like Charge Rigs are offering innovative solutions and support to make entering this market more accessible to aspiring investors. Explore the charging equipment and solutions on chargers today.
