The rise in electric vehicle popularity instantly threw a spotlight on the need for EV charging station businesses. These solve range concerns that prevent drivers from switching, but you getting into the business is intimidating without the right guidance.
When starting an EV charging station business:
- Focus on details like reliability and safety
- Do not underestimate how location affects performance
- Do what it takes to make your business visible
- Find future-proof software
- Look to legalities and certifications before committing to the business
The time to start an EV charging station business is now, but make sure you understand the ins and outs before diving in. These tips will help by increasing your chances of success and preventing issues down the line.
Focus on the Right Details
One of the main tasks to tackle when starting your EV charging station business is what type of stations you intend to offer. You need to decide what level of charging stations you intend to offer (or if you plan to offer all three), but the details to focus on are the same across the board:
- Reliability
- Safety
- Intelligence
These aspects are the perfect blend of general and essential to govern any decisions you make regarding your EV charging station business, including what EVSE units to include and what software to use to run the business.
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Reliability
When looking at units, you want to make sure the ones you choose have a proven record of reliability. You want manufacturers with proven lifespans, warranties, and customer service response.
They should also be able to fit a variety of market needs.
When people balk at switching to electric vehicles, the main reason they cite is anxiety related to range. It is not as easy to recharge a car that dies on the side of the road as it is to have a friend bring you a gallon of gasoline.
People also worry that they will get a station and the units will be out of service or they will not work for their electric vehicle.
You can solve this issue preemptively by checking reviews and recommendations for any unit you consider. Focus on brands available to you with a good reputation, and dig deep to see how often they break down and how serious those fixes are.
Safety
Your units and the layout of your station need to meet international standards. Of course, start with local and federal guidelines, but international standards should be the goal. These are often more stringent than local guidelines, and they can encourage foreign visitors to visit your station over the competition.
Your station should also have safety plans in place for emergencies that operators and consumers can follow easily.
Units need to be set up with a system that can withstand all kinds of weather conditions, both short and long-term. They need to be able to take a hit and still charge safely, especially in emergency conditions when people need to recharge and flee an area.
Intelligence
There is more pressure on an EV charging station to incorporate smart features, such as online connectivity and the ability for consumers to connect with their charge status.
A more intelligent system will allow you to perform diagnostics and complete other tasks remotely, including:
- Maintenance
- Management
- Controls
A benefit of setting up a branch of an established EV charging station chain is the consumer’s familiarity with their application and intelligence features.
You can also develop intelligence features to suit your own brand if you choose to go that route.
Do Not Underestimate Location
Location is key when it comes to starting an EV charging station business. Try to put your station as close to your power source as possible to limit costs, but do not be afraid to work with what you have.
Most places can benefit from an EV charging station, but you need to pay attention to potential competition and consider where your consumers would be most likely to stop in and recharge.
You should also look for additional opportunities to entertain and serve your customers while they use your charging station.
High Demand
Just like ICE drivers plan their commute based on gas stations, EV drivers will change their route for a station that:
- Is easily accessible
- Meets their charging needs
- Charges appropriate rates
You should make sure you don’t put your station too far from them or you will find yourself pushed out of work by the first developer that notices. This may require you to adjust your location plans, but it pays off in the long run.
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Other Opportunities
Gas stations are often synonymous with convenience stores because developers noticed people like taking care of all their needs at one time. If you can find a similar location or create a similar setup, mimicking this model will expand on your entrepreneurial spirit.
If you have an established business, consider setting up at least one EVSE unit outside to accommodate drivers. This indicates where you stand on the situation, and you can use it to highlight your full station setup.
Make Your Charging Station Visible
One of the issues with EV charging stations is that they tend to be tucked away on empty plots of land or people are unsure of what the business actually is.
This is another benefit of parking with an established brand, but it requires you to compromise on certain details of your EV charging business plans.
You can make your station more visible by focusing on design and marketing strategies. You should also make sure it is easy for drivers to know which stations are available and which ones are out of order.
Take as much guesswork out of the equation as possible to give consumers the confidence to stop in and take advantage of your EV charging station.
Design and Marketing
Design covers a few details.
Create a basic layout that is easy for drivers to navigate and understand. Everything should be properly marked (even if you feel like it is self explanatory), and make sure details like operating hours are easy to discern.
If you have a video surveillance system (which you should have) make this obvious. This gives drivers the confidence to use your station at any time, and it also deters vandals or other malicious beings.
Work with a designer to create a scheme that exemplifies the primary stance of your business. Work with design and color theory to appeal to:
- Sustainability
- Modernism
- Forward movement
Working with a marketing specialist will also help you find your ideal customers and bring them in.
Future Proof Your Software
One of the biggest threats that technology poses is the ability to become outdated. We see this often with cell phones that upgrade every season, and hesitant ICE converts fear this issue will persist with EVs and charging capabilities.
To address this fear, start by offering as many types of charging stations as you can justify.
Another way to avoid this is by focusing on “future proof” software.
In short, look for a software provider that has a history in this industry and proves that they don’t look for the first opportunity to make you buy something new.
Your software should also incorporate customer needs by offering support for:
- Locating your station
- Booking a ESVE unit
- Starting and stopping charging
- Making payments
This can also streamline customer support situations.
More Control and Visibility
Software that hands control and visibility to you with little battle should be preferred. Look for something that offers you a centralized view of the charging ecosystem.
You want control over basic features and concerns, such as:
- Adjusting prices
- Performing diagnostics and maintenance
- Adjusting power output
- Controlling station access
Depending on the software you use, you may find unique features and different fee levels. Find one that impresses you without forcing you to compromise on your needs.
Consider Legalities and Certifications Before Committing
Before starting an EV charging station business, dig deep to uncover all:
- Permits
- Licenses
- Laws
- Agreements
Consider legalities and limitations that affect your ability to make decisions. You may not have as many opportunities as you thought, and the hoops you have to jump through are numerous.
These are bound to grow as we learn more about ESVE units, and you will need to adapt alongside them. Consider how your municipal, state, and federal government will respond to new research and make sure you have a clear understanding of the current situation before making the commitment.
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Frequently Asked Questions
How much does it cost to start an EV charging station business?
The cost to start an EV charging station depends on what you plan to offer, but in general it costs up to $1,000 for a Level 1 EVSE unit, $7,000 for Level 3, and up to $40,000 for Level 3. You should also consider installation fees, which often cost more than the unit, as well as legal fees like licensing and permit.
How do residential charging stations affect EV charging station businesses?
Residential charging stations reduce the need for EV charging businesses, but they do not eradicate them. Not every individual can afford a residential station, and projections predict EVs outselling ICE units by 2030. EV charging stations will become essential to daily processes, but their availability now is what helps consumers make the decision to switch.
How many EV charging stations should you have at your business?
Even one EV charging station can make a difference, but you should consider the demand in your area. Are there many EV drivers? What kinds of vehicles do they drive? Are your consumers likely to flock to a fast charger? This government analysis explores the ideal ratios for your station.
To learn more on how to plan your own EV charging business click here!
Please note that the contents of this blog are for informational and entertainment purposes only and should not be construed as legal advice. Any action taken based on the information provided in this blog is solely at your own risk. Additionally, all images used in this blog are generated under the CC0 license of Creative Commons, which means they are free to use for any purpose without attribution.
About the author. A lifetime of Entrepreneurship.
Hi! My name is Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop (link here http://archives.starbulletin.com/2003/05/18/business/index.html) to an import and export business to an online review business plus a few more and now I create online resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet new business owner, I see myself. I know how hard the struggle is to obtain and retain clients, finding good employees and making sure everything works together all while trying to stay competitive.