If you are adding commercial EV charging to your property, you may be one of the many retail or multi-residential building owners asking themselves—to monetize or not to monetize.
Considering the continuous growth of EV ownership in the United States, more drivers than ever are now seeking convenient places to charge their vehicles at home, in town, and while traveling. This presents massive opportunities for commercial, multi-residential, and mixed-use property owners to host EV charging stations.
On one hand, generating revenue from EV charging is a great way to recoup some of your initial investment. On the other hand, free EV charging services can attract more drivers and increase their time onsite.
To guide the decision-making for your electric vehicle supply equipment (EVSE), let’s look at the specific roles that commercial property owners play in the EV charging landscape before analyzing the pros and cons of monetization.
EV charging in apartment complexes and multi-unit dwellings (MUDs)
Americans are renting living spaces at the highest rates in decades, including 3 million households with an annual income of over $150,000. To attract and retain those with the finances and sustainable mindset associated with EV ownership, offering EVSE is now a critical amenity for complex owners that provide parking for tenants or hope to achieve green building certifications.
| Building type | Apartments and multi-unit dwellings |
| Primary users | Current and future tenants |
| Secondary users | Guests of tenants and visitors of nearby attractions |
| Possible charger locations | Onsite or adjacent parking lots, structures, or garages |
If you are a building manager planning your first EVSE installation, begin by learning the multi-residential EVSE permitting processes in your area (both government and utility), as well as any EV charger incentives available at the federal, state, or city level. Considering the highest demand for multi-unit EV chargers is in dense urban areas, many American cities offer unique commercial EVSE rebates and programs.
For multi-residential owners in the United States, we suggest exploring the guides, resources, and case studies published by the Alternative Fuels Data Center.
EV Charging on Commerical and Retail Properties
For retail and commercial building owners, installing EV chargers can draw a new network of drivers to your property. As a result, two different revenue streams potentially develop: one for paid charging services and another for additional money spent by customers using your EVSE.
Knowing that 50% of drivers make retail purchases while fueling at traditional gas stations, those using public EV chargers will likely continue or even increase this trend. This is especially true considering that in a recent study, drivers plugging into EV chargers at a retail chain spent roughly 50 more minutes onsite than shoppers not using EVSE.
| Primary users | Employees and direct customers |
| Secondary users | Indirect shoppers and visitors based on proximity |
| Possible charger locations | Public and private parking spaces within a free or paid lot |
Distinctly different from multi-residential, retail property owners must seek out their permitting processes, installation limits, and EV charger incentives related to the project’s city, state, and utility. Commercial property owners should also refer to the current site host guidelines from the U.S. Department of Transportation (DOT) for federal regulations.
Commercial EV charging monetization: Pros
- Revenue stream: Requiring customer payment for EV charging opens a revenue stream for property owners. In the right circumstances, a steady flow of customers paying to charge onsite can help reduce total investment costs, including charger upkeep and maintenance expenses.
- Be rewarded for improving EV charging infrastructure: The demand for pubic-facing EVSE in the United States is undeniable. Adding EV charging facilities to retail centers, restaurants, malls, and other locations with frequent footfalls is one of the most profitable ways to increase EVSE infrastructure in the private sector.
Commercial EV charging monetization: Cons
- Demotivating for EV drivers: When choosing between a paid or free EV charger, it is fairly apparent which choice is more attractive if all other variables are equal. Asking drivers to pay for a service they can get for free elsewhere may encourage them to go elsewhere if a free option is available.
- No longer an “included” amenity: Free EV charging is a great way to attract new tenants, but paid charging doesn’t quite provide the same level of incentive. Just like you wouldn’t require payment for tenants to use the gym, EV charging is only a premium amenity when included in a lease or rental agreement. Similarly, retail shoppers may be less likely to hurry back to the car if they are not “on the clock” while spending money to charge onsite.
- Regulatory and technological hurdles: Commercial property owners may find that paid chargers increase the complexity of their EVSE development and maintenance when deciding to monetize. In addition to a required permit to collect revenue, monetization also introduces the necessity of a live payment system, which comes with challenges like network connectivity issues and the risks associated with hosting third-party products. Critically, to receive National Electric Vehicle Infrastructure Program (NEVI) funding, commercial chargers must maintain a reported uptime of 97%.
- Profitability challenges: Lastly, monetizing EV charging is not guaranteed to recover investment costs directly if profit margins are minimal beyond the costs to supply electricity. As a result, profitability can be challenging for charging station operators relying on user fees and the extra required expenses, as illustrated in the table below.
| Estimated costs | Free charging stations | Monetized EV chargers |
|---|---|---|
| Upfront cost of Level 2 EVSE | Non-networked chargers, $500-$1,800 per unit | Networked chargers, $3,500+ per unit |
| Permitting expenses | Building and electrical permits | Building, electrical, and possible additional vending permits |
| Electricity and maintenance | Cost of local electricity and non-networked charger maintenance (estimated at $400 annually) | Cost of local electricity and networked charger maintenance (more than $800 per charger annually) |
| Network fees | $0 for non-networked chargers | Vary by provider and site, can exceed $2,500 annually |
Conclusion: Should you monetize EV charging on your property?
Monetized or not, adding EV charging to your commercial property can promote sustainability, attract new clientele, and increase the likelihood of spending more onsite.
Given the challenges, complexities, and demotivating factors of monetization, however, commercial property owners may find that the benefits of offering free charging will ultimately outweigh the revenue that could be generated from paid services. Financially speaking, experts have even indicated that indirect spending from visiting EV drivers is typically more significant than user fees.
For assistance with EV charging equipment, incentives, and more, Enphase is here to help optimize your commercial EVSE installation.
