Each year, more electric vehicles are on the road. More people are considering an EV for their next purchase. Governments are strongly incentivizing the adoption of EVs. All of this growth has created growth in demand for electric vehicle chargers.
That’s why many employers, landlords, retailers, and other businesses have been adding EV charging stations on their properties as a valuable amenity that attracts employees, tenants, and customers.
But electric vehicle chargers are not just an amenity. They can also be a source of revenue at parking facilities—a way of increasing parking lot ROI. The major concern many lot owners have is that EV chargers are expensive.
So let’s take a closer look at the value proposition.
Financial Incentives Tilt The ROI Formula in Your Favor
Electric vehicle chargers are not cheap, and the newer DC fast chargers are significantly more expensive than the slower Level 2 chargers that have long dominated the commercial EV charging market. For some businesses, the value proposition just isn’t there.
However, this is only if you’re thinking about EV charging stations in terms of their retail price tag. The federal government, along with most state governments, some local governments, and a large number of electric power utilities, offer financial incentives to offset the costs of purchasing and installing electric vehicle chargers.
You may be able to offset anywhere from 30% up to 100% of the total costs!
Federal Tax Credit of 30%, Up to $30,000
The Alternative Fuel Vehicle Refueling Property Tax Credit previously expired in 2017 but returned in 2020 and applies retroactively. It provides tax relief for installing “refueling properties” (i.e. infrastructure) that use alternative fuels, such as electricity. This means that, in addition to being able to claim the credit for new EV charging stations that you purchase and install going forward, you may also apply for the credit if you already installed your electric vehicle chargers in 2018 or 2019.
This federal tax credit accounts for 30% of the total costs of purchase and installation, up to a maximum of $30,000. It is a “non-refundable” credit, meaning you cannot use it to increase your tax refund. You can only use it to recoup the actual costs of your vehicle chargers by reducing the amount of overall tax your business owes in a given year.
States & Local Incentives
Many state governments and electric power utilities offer generous grants for purchasing and installing EV charging systems.
You can contact your local power company, and your local and state governments, to inquire if they have any vehicle charger incentives that are currently accepting applications. At EV Connect, we can also help you find financial incentives.
Efficient Networking is The Key to Profitability
With financial incentives reducing the cost, the other major consideration is leveraging your new infrastructure. To do this, you need networking solutions. It’s extremely challenging to monetize your EV charging systems without them.
That’s where EV Connect comes in. We offer comprehensive network charging solutions that let you monitor, manage, and monetize your electric vehicle charging stations with ease from a single control point. Our customers include landlords, workplaces, retailers, local governments. We work with businesses and agencies of all sizes. Some of our big-name customers include the City of Los Angeles, New York University, and Hilton.
Contact EV Connect to learn more about our networking solutions and how you can maximize your ROI on electric vehicle chargers.
