Commercial EV Charging Business Models
If you’ve decided to install commercial EV charging stations at your premises, you’ll want to find a business model that allows you to generate profit, or at least be able to recover the installation costs. This article explores some of the different business models for electric car charging at a commercial premise, allowing you to increase direct revenue, offer a convenient service and improve your sustainability reputation.
First off, it’s important to mention that every business has different needs, and there’s no one size fits all solution. As part of our installation service, we can also help evaluate your requirements and recommend a tailored solution that’s right for your business, your employees, and your customers.
Loss-leader Commercial EV business model
The loss-leader model allows your customers and employees to use your electric vehicle chargers for free as a way to increase footfall on your premises and provide great employee benefits.
This is ideal for retailers or businesses with good levels of footfall and whose customers spend 45 minutes or more browsing in their store. Having the option to charge their vehicle for free will encourage them to spend longer periods of time at your premises. Having free charging available for staff could also encourage staff to stay at the company for longer.
Cost recovery business model
This model allows you to recuperate your electricity cost by charging customers and/or employees for the usage. You can set your charging fees, and adjust them at any time in line with your energy tariff. Once the costs have been recovered you could then reduce the charging costs to offer a benefit or perk to customers and staff.
Profit-making business model
This model is similar to the above, allowing you set a usage fee that covers your electricity cost, but you can also add a mark-up per kilo watt of electricity usage in order to generate a profit.
This model is ideal for businesses in a more remote location, or where there is less competition for EV chargers.
Other considerations to bear in mind before deciding which business model is right for your EV chargers:
- The higher the kW of your charger the more electricity it is likely to use. Typically, a 7kW charge point will provide an EV with up to five miles of charge in 10 minutes. An ultra-fast 150kW unit gives up to 100 miles for the same time.
- A key factor in the initial installation is where the site’s power supply is located. Ideally, they should be located as close to the power supply as possible so that minimum digging is required.
- Businesses should use clear signage to indicate whether the charging point is free to use and/or what the costs are. You can also advertise on apps like Zapmap.
- In addition to the above-mentioned charging models, some companies are allowing free charging to their employees but charging visitors and customers. In this case, you may wish to have a time cap on usage for employees or consider installing a customer dedicated charging point.
- Remember that for businesses who don’t have a lot of customers visit their premises and who want to install EV charging points purely for their staff to use, offering this service free of charge is a great employee benefit, and will allow you to retain and attract employees to your business.
Whatever business model you choose, offering EV charging facilities on-site will allow you to put your business on the map and attract customers and employees to your business. Apps such as Zap-Map allow people to easily locate charging points and this in turn will lead to increased footfall to your business.
If you would like to install EV charging points at your business, call 01978 808517 or get a free quote by completing this form.