Who Pays for EV Charging Stations?

As electric vehicles become more common, many employers are facing questions of when and how to add commercial charging stations to their properties. With an increasing number of employees in need of a place to “refuel” during the workday, and news of the EV tax credit extending through 2021this amenity is quickly shifting from an added perk to a competitive necessity.

This naturally leads many employers to the next big question: Who pays for these things? There are many EV charging station infrastructure costs to consider, but the good news is that you may not have to bear the full brunt of all those expenses. Between state and federal incentive programs that help cover infrastructure costs or the cost of the charging stations and networking to grants that may cover up to 100% of costs, you have options.

The Costs of Installing Commercial EV Chargers

Before we get into how you can offset the costs, though, you’re probably wondering just how much a project like this will cost in the first place. The answer? It varies.

A recent report from the renewable-energy-focused nonprofit Rocky Mountain Institute examined the range of costs and found that the final bill will depend greatly on what kind of charging infrastructure you need. Basic level-2 chargers range from $2,500 to $4,900 each, while DC fast chargers can cost anywhere from $20,000 to $150,000 depending on the speed and output power you require.

That’s just for the chargers. To support electrical needs up front,, you’re looking at electrical transformers ($35,000–$173,000 each), cables ($1,500–$3,500 each), credit card readers ($325 to $1,000 apiece) and data/network contracts that can add a few hundred dollars a year. Once your electrical needs are set up, installation costs for the chargers themselves may come into play as well. Clearly, this can all add up fast. But it doesn’t all have to come out of your pocket — and much of what does can come back to you over time.

Partnerships and Subsidies

There are several ways to reduce your costs out of the gate. Some of these come in the form of incentives such as rebates and subsidies; others require a bit of creativity and planning.

Utility Rebates

Many utility companies throughout the U.S. offer rebate programs for commercial customers that install EV charging stations on their properties. Some of these programs, such as AEP Ohio’s, offer to cover up to 100% of the costs. Your utility provider is the first place to check when you’re weighing adding an EV charging station to your property.

Tax Credits and Other Incentives

The federal tax credit for alternative fuels is a hefty one — 30% of your EV charging station infrastructure costs, up to $30,000. It is currently set to expire at the end of 2020, but with the new presidential administration, we’re likely to see that extended. Even if that program isn’t extended, however, there are a number of state and local tax credits and grants available that can substantially reduce your project costs.

Creative Solutions

Beyond direct credits and rebates, there are other ways to significantly lower your costs. Neighboring businesses may be willing to partner with you to share the costs and benefits of installing a charging station, for instance. You can also save significantly in the short term and long term by planning your project correctly. Strategically placing your station to reduce the length of conduit that must be laid will save you up front, while ensuring you install enough infrastructure to have room to grow will curb long-term costs.

Long-Term Benefits

Adding an EV charging station shows that you’re eager to stay one step ahead of your competition. It’s a feature that more and more employees will be looking for, so it’s important to see this as an investment in your company’s future growth and success. As your business attracts the best talent and grows, so do your long-term profits. To help, EV charging is one perk that can ease the transition back to the office coming out of the pandemic and help your business stay competitive, attracting more interest and foot traffic.

A growing business also provides you with more opportunities to pass on the costs of your EV charging station infrastructure. Although many employers offer charging as a free service to employees, many charge a small fee to absorb some of the expense of offering this benefit. If you’re unsure whether your business can afford these upgrades, it may be worth surveying your employees to see if they are interested enough to share some of the costs.

Overall, adding smart charging solutions and network managed charging stations to your property can be a smart move for your business, but it’s a big decision with many costs and benefits to sort out. EV Connect has been a trusted partner for many businesses as they step into this exciting new field. We are here to help you at every step up the way — from counting and cutting the costs to finding the right charging equipment.

Contact us today and we’ll help you figure out how to cover the costs of this worthwhile investment.

References:

1. https://rmi.org/wp-content/uploads/2020/01/RMI-EV-Charging-Infrastructure-Costs.pdf

2. https://afdc.energy.gov/fuels/electricity_charging_workplace.html

3. https://afdc.energy.gov/fuels/laws/ELEC

4. https://afdc.energy.gov/laws/state

5. https://afdc.energy.gov/laws/10513