How EV Chargers Can Transform Your Commercial Property

Updated July 2023

Curious is EV chargers are a sound investment for your property? It’s a fair question—electric vehicles are becoming mainstream, and the demand for charging infrastructure is growing by the day. But here’s the thing: EV chargers are more than just a shiny, modern amenity. They can boost tenant satisfaction, make your property stand out, and even bring in some extra revenue. We breakdown a common example of EV charger profit margins and initial investment costs below.

Why Consider EV Chargers?

First off, let’s not think of EV chargers purely as an expense. Sure, there’s an upfront cost, but the benefits go beyond dollars and cents. Tenants who see EV chargers on-site are more likely to renew leases. Plus, businesses with charging stations are showing they’re forward-thinking—a quality that can attract eco-conscious tenants and customers.

Think of it this way: EV chargers are like adding Wi-Fi in the early 2000s. Back then, it wasn’t a requirement, but it quickly became a standard that set properties apart.

Understanding EV Charging Levels

Before diving into numbers, it’s important to understand the different types of EV chargers:

1. Level 1 Charging: This uses a basic 120V outlet and takes 8–12 hours to fully charge a vehicle. Great for overnight home use, but not ideal for commercial properties.
2. Level 2 Charging: This is the sweet spot for most commercial and multifamily properties. It uses a 240V outlet and charges vehicles in 4–6 hours. It’s fast enough for convenience but doesn’t require major electrical upgrades.
3. Level 3 Charging (DC Fast Charging): The king of speed, this option can charge a vehicle in 30–40 minutes. However, not all vehicles are compatible with it, and installation often requires costly electrical upgrades.

How Much Does It Cost?

On average, a Level 2 charger (the most practical choice for most properties) costs around $10,000 for materials and installation. You’ll also need to factor in annual maintenance. Payment systems like ChargePoint let you set your own rates, giving you flexibility in recouping costs.

Incentives: Free Money for Your Chargers

Here’s where things get interesting: depending on where your property is located, you could qualify for incentives that cover up to 100% of installation costs. The catch? In some cases, these incentives require making chargers available to the public, which might mean rethinking your parking strategy. Still, it’s a win-win for property owners who want to attract more traffic.

Hidden Costs: Watch Those Demand Charges

If you’ve ever noticed a spike in your electricity bill, you’ve probably run into demand charges. EV chargers can add to this if multiple cars are plugged in during peak hours. Be strategic about pricing—adjust rates to account for time-of-day usage, and you can avoid any unpleasant surprises on your electric bill.

Crunching the Numbers

The key to making EV chargers profitable is utilization. Cars parked for hours but only charging for a portion of that time can skew your revenue potential. One way to solve this? Charge by the minute instead of the kilowatt-hour. It’s a subtle shift, but it can help ensure steady revenue even when charging times vary.

Final Thoughts

Adding EV chargers isn’t just about keeping up with the times—it’s about getting ahead of the curve. Properties with charging stations show they’re ready for the future and willing to invest in the needs of modern tenants and customers. Whether you’re looking to boost tenant retention, attract new business, or generate additional revenue, EV chargers are a smart move.

At Commercial-Solar.org, we specialize in helping property owners navigate the transition to renewable energy solutions. From identifying incentives to crafting a financial strategy, we’ve got you covered. Ready to get started? Let’s talk!