Although the United States has long lagged other regions in electric vehicle (EV) adoption, the country is now reporting record growth. EVs represented about 8 percent of all new passenger cars sold in the United States in 2022, up from around 5 percent in 2021.
The United States will need about 28 million ports by 2030 to meet the demand for electricity by zero-emission passenger vehicles (Exhibit 1). Private ports are expected to increase in number from around 2.5 million to nearly 27 million, representing about 95 percent of the total.
There are two types of public charging: direct current fast charging (DCFC), which is used on highways and for fast fill-ups, and slower Level 2 (L2) charging, which is available at places such as grocery stores, malls, car dealerships, golf courses, and banks, where people may park for longer periods. L2 charging may also occur next to sidewalks or near street parking. About 150,000 L2 and DC plugs are now available across the United States, but that number is expected to increase to 1.5 million by 2030, when they will represent about 5 percent of the total.
Currently, most EV owners tend to be home owners with access to a home charger, and they often have a second vehicle for long-distance trips. But even people that fit this profile will sometimes need public charging. For instance, they might forget to charge their vehicle overnight and thus need to charge on the road, or they might find that the slow L2 charger at their workplace parking garage, where they usually connect during an eight-hour workday, is out of commission. Additionally, long journeys—those over 150 to 200 miles—will necessitate public charging.
Recognizing the need for public chargers, many new players are now entering the sphere. For instance, some major automakers are banding together to invest a minimum of $1 billion in a joint venture that will build stations with about 30,000 fast chargers in urban and rural areas of the United States.
Regardless of business model, the up-front capital costs for fast charging stations are high. A 150 to 350kW DCFC charging unit can cost anywhere from $45,000 to over $100,000, and installation costs can range from $40,000 to over $150,000. Additionally, grid upgrade and integration costs can amount to millions, depending on the number of fast chargers installed at the location.
We examined the economics for a hypothetical DCFC charging station with an owner-operator business model in California. In line with typical patterns, we assumed the charging station would have 4 150kW chargers.
Even if fast public charging stations do not receive subsidies or credits, they may still be able to improve their bottom line. We have identified several potential levers for driving improvements that span multiple areas: utilization, electricity cost, electricity price, demand charge cost, lifetime hardware costs, and ancillary revenue (Exhibit 5).
While all of these levers are important, charge-point operators would have to apply them aggressively to make a difference. Consider utilization and competitive pricing, which could potentially drive the greatest gains. Using our example of a typical fast public charging station in California, the owner-operator would break even if utilization increased from 15 percent to 20 percent, or if the price for charging customers increased from $0.45/kWh to $0.53/kWh. Profitability would also be possible in other scenarios (Exhibit 6).
Peter Fröde is an associate partner in McKinsey’s Southern California office, Morgan Lee is a solution associate in the Waltham, MA office, and Shivika Sahdev is a partner in the New York office.
EV charging can be a lucrative investment for your business, and charging fees can bring in thousands in revenue per year, depending on your situation and type of business.
This article will break down different charging fee strategies, and includes a table of gross monthly revenue estimates based on a variety of situations and locations that include (and combine) AC and/or DC charging stations, by looking at multiple common EV charging behaviors.
Beyond direct revenue, EV charging stations can also help attract new customers by putting your business on the map, increase the time they spend at your location, unlock cross-selling opportunities, and enhance your sustainability credentials.
Installing EV charging stations today is about more than just preparing your location for this shift in transportation—it''s also a clearcut path to attracting more customers and generating more profit. Below are a few examples of how adding public EV charging can make your existing business more profitable, as well as become a revenue stream all on its own.
In today''s competitive landscape, businesses must think of creative ways to attract customers while also boosting the value of each transaction. Transforming your location into an EV charging destination is one of the simplest ways to do just that.
Once EV drivers stop to charge, there is an obvious cross-selling opportunity for add-on products and services. Whether it''s a rideshare driver recharging during a lunch break or a little league coach topping off his battery while getting snacks for the team.
About Are electric charging stations profitable
As the photovoltaic (PV) industry continues to evolve, advancements in Are electric charging stations profitable have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Are electric charging stations profitable for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Are electric charging stations profitable featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
Related Contents
