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Government regulations that favor electric vehicle (EV) adoption combined with pressure from employees, customers, and investors for corporations to embrace climate-friendly policies has placed an onus on businesses to install EV charging stations at their properties. While the benefits for drivers are apparent — more EV chargers at their disposal means less worrying about their batteries dying — the business case for installing EV chargers can be less clear.
A company’s sustainability officers, operations leaders, and other key personnel may all agree in principle that EV charging is necessary, but they often need more information to justify the investment to stakeholders. Let’s break down which businesses should consider installing EV charging stations, their benefits, and how you can get started with implementing an EV charging project of your own.
Onsite EV chargers are suitable for any kind of business that hosts vehicles on its property throughout the day. Here are just a few of the most common business types that opt to install EV charging systems, and why:
As more companies are instituting return-to-work plans following the COVID-19 pandemic — a survey found 90% of companies intend to be in-office by 2025 — the number of employee vehicles parked at office buildings is growing. And with more drivers choosing to go electric each year, a larger percentage of these vehicles will soon be EVs. Charging stations are needed at workplaces to keep pace with the growing demands of employees who want to replenish their cars throughout the day while at the office.
In addition to charging at the office, drivers want the ability to charge at home. According to the National Multifamily Housing Council, 45 million households in the United States are renters, and more than a third live in apartments. Much like workplaces need to consider the demand for onsite charging options, so do developers and owners of multi-unit dwellings. In fact, some states like California already require a percentage of parking spaces in new constructions to support EV charging.
Dependable and accessible EV charging is essential for businesses that maintain electric fleet vehicles, including logistics companies, transportation hubs, and hospitals. It’s critical for these types of organizations to ensure vehicles are charged and ready for deployment when they’re needed, and this is only achieved by installing EV charging stations where they are garaged. Additionally, companies with fleets can benefit from fleet management software that integrates with telematics to keep tabs on vehicles’ battery levels when in the field. For more information on hardware, check out our article on the cost of commercial EV charging stations.
Now let’s explore the wealth of benefits that EV charging grants to businesses. You’ll see that these benefits are multidimensional — improving a company’s outlook in terms of financials, sustainability profile, and customer and employee satisfaction.
Installing EV chargers can bolster your sustainability profile by helping you reach your Scope 1, 2, and 3 emissions targets.
For example, the presence of chargers on your property encourages employees to use EVs to commute to work, which can reduce your Scope 3 emissions, i.e., greenhouse gases that are indirectly linked to your company.
Businesses that install EV chargers and choose to electrify their vehicle fleets can also cut their Scope 1 emissions, which are emissions that are directly caused by a company’s activities. What’s more, if you use renewable energy such as solar to power your chargers, you can also reduce your Scope 2 emissions, that is, emissions that are generated from purchased energy sources.
EV chargers installed at rental properties are considered amenities for which real estate developers and landlords often charge a premium. This allows owners and operators of office buildings, apartment complexes, and other kinds of leased properties to realize a significant increase in property value. As with other common amenities like gym access, free parking, and doorman services, onsite EV charging serves as an enticement for new tenants to start renting on a property as well as for existing ones to renew their leases year after year.
Offering EV chargers on site has become a necessity for companies who want to attract and retain top talent. As more people adopt electric vehicles, the availability of charging stations at a workplace is likely to influence their decision to accept an employment offer and remain with the company. Beyond the need to charge their cars, eco-conscious workers will welcome EV chargers as a sign their company is committed to fighting climate change.
It’s also in the best interest of retail locations like supermarkets and big-box stores to provide charging opportunities, as customers who drive EVs are more inclined to shop where they’re able to recharge their vehicles.
Businesses that choose to implement an EV charging system at their property can leverage tax credits and incentives to defray installation costs. On the federal level, the Alternative Fuel Vehicle Refueling Property Credit allows corporations, government offices, and other entities to receive a tax credit of up to $100,000 on qualifying installations. Plus, many U.S. states like California, New York, Colorado, and others offer attractive rebates that can directly reduce EV charging hardware and infrastructure expenses. To see what’s available in your area, visit PowerFlex’s Policy & Incentives Hub.
Lastly, organizations can generate new revenue streams in the form of fees drivers pay to use onsite EV charging stations. These fees, which are normally assessed on a per-kilowatt-hour basis, are a great way to bolster your business’ net operating income, that is, a property’s ability to generate revenue from its operations alone.
But won’t charging fees deter drivers from using your stations? No, the financial impact of EV charging fees on drivers is minimal. According to The Washington Post, “In all 50 states, it’s cheaper for the everyday American to fill up with electrons — and much cheaper in some regions such as the Pacific Northwest, with low electricity rates and high gas prices.”
You can unlock additional benefits when you choose PowerFlex as your EV charging partner. Our adaptive energy management platform, PowerFlex X™, uses patented Adaptive Load Management® (ALM) algorithms to intelligently distribute EV charging load — avoiding peak demand fees from the utility. ALM also enables the installation of more charging stations per site without expensive infrastructure upgrades, resulting in up to 60% savings on implementation costs. Contact PowerFlex and one of our EV charging experts can help get you started.
