Electric Vehicle Charging Overview
Imagine never having to stop at a gas station again – and instead, having an unlimited supply of fuel available at home or wherever you normally park. For many electric vehicle (EV) drivers, this is a reality. Battery electric vehicles never need gas, and for short trips, plug–in hybrids might use no gas.
EV charging is simple, cost–effective, clean and convenient, particularly when you are plugged in at home – filling up your car, even while you’re asleep.
There are three categories of electric vehicle (EV) charging: Level 1, Level 2 and DC fast charging. Levels 1 and 2 charging use a universal connector that can be plugged into any EV. DC fast charging uses three different connector systems called CHAdeMO, CCS Combo and Tesla Supercharger.
Although EV drivers primarily charge at home, workplace and public chargers are increasingly available in communities nationwide. Use our EV Charging Station Map to find nearby charging stations.
Level 1 Charging
Level 1 is the slowest method of charging but is sufficient for drivers who charge overnight and travel 30–40 miles per day. Charging cables usually come with a vehicle and plug into a standard 120–volt AC outlet with no equipment installation required. Level 1 charging works well for charging at home, work or anywhere a standard outlet is available – and when you have sufficient time to charge.
Level 1 charging uses a standard J1772 or Tesla connector that can plug into any EV, either directly, or through an adapter.
Level 1 charging adds about 3.5 – 6.5 miles of driving range per hour of charging time.
Level 2 Charging
Level 2 charging is considerably faster, but requires installing a charging station, also known as electric vehicle supply equipment (EVSE). EVSE requires a dedicated 240–volt or 208–volt electrical circuit, similar to what is required for a clothes dryer or electric range. Level 2 is found at many public and workplace charging stations, but also in many homes. It uses the same standard connector as Level 1 charging, meaning any EV can plug in at any Level 2 charger.
Level 2 charging uses a standard J1772 or Tesla connector that can plug into any EV, either directly, or through an adapter.
Depending on battery type, charger configuration and circuit capacity, Level 2 charging adds about 14 – 35 miles of range per hour of charging time.
DC Fast Charging
DC fast charging, also called quick charging or supercharging, provides the fastest available fill–up. It requires a 480–volt connection, making DC fast charging unsuitable for home use, and not every EV model is equipped for it. Stations offering DC fast charging are found in shopping centers and often along major travel corridors, allowing EV drivers to charge up quickly and take longer trips.
DC fast charging uses CHAdeMO, CCS or Tesla connector systems. Check with your vehicle manufacturer to determine if your car has fast charging capability and what connector systems are compatible with your EV.
Depending on battery type, charger configuration and circuit capacity, DC fast charging can add up to 100 miles of range in about 30 minutes of charging time.
What are Commercial EV Charging Stations?
Commercial EV charging stations are specifically created to provide a durable and cost-effective charging solution for electric vehicles in public areas, workplaces, and other commercial settings. These stations generally offer multiple charging points to accommodate several vehicles simultaneously. They are equipped with innovative features such as Smart connectivity, billing systems, and user authentication for effective management and operation.
It ensures businesses and organizations provide EV owners with a streamlined and user-friendly charging experience. With their reliable infrastructure and innovative technology, commercial EV charging stations support the growing demand for electric vehicles and facilitate the transition to a sustainable transportation future.
In the next section, we will discover the cost of EV charging stations.
Cost of EV Charging Stations
Commercial EV charging stations come in different types with varying charge times and costs.
Level 2 chargers range from 700 to 5000,000, providing charge times of 4-8 hours (48A, 200-240V AC) or 2-5 hours (80A, 200-240V AC). However, Level 3 chargers offer faster charging, with costs starting from 30,000 to 40,000 for 1-2 hours (100A, 480V DC), 55,000 to 65,000 for 30-60 minutes (200A, 480V DC), and 65,000 to 75,000 for 15-30 minutes (250A, 480V DC).
A table is provided below to understand the cost of EV charging stations.
It is important to note that the estimated commercial charger costs mentioned above are approximate and may vary based on different factors such as brand, features, and installation requirements.
Now let us understand what factors affect the cost of EV charging stations.
Factors Affecting the Cost of EV Charging Stations
The price of a commercial EV charging station can vary widely depending on several factors. Here is a closer look at some of the critical factors that influence the overall cost:
Station Type and Power Capacity:
The type of EV charging station and its power capacity are significant factors in determining the cost. There are two main types of commercial electric car charger stations: Level 2 AC chargers and Level 3 DC fast chargers.
Level 2 chargers are common in residential areas, workplaces, and commercial settings. They provide charging through a 240-volt AC power source and offer a charging rate of around 10-20 miles of range per hour. These chargers are generally less expensive compared to Level 3 chargers. The cost of an EV charging station with a Level 2 charger can range from 700 to 5,000, based on the brand, features, and installation requirements.
In contrast, Level 3 chargers, also known as DC fast chargers, are created for Rapid charging and can provide a considerably higher charging rate. These commercial chargers use a direct current (DC) power source, allowing EVs to charge much faster than Level 2 chargers. Level 3 chargers are commonly found along highways, busy public areas, and commercial hubs. However, they are more expensive than Level 2 chargers due to their advanced technology and higher power capacity.
The cost of an EV charging station with a Level 3 charger can vary widely, ranging from 30,000 to 75,000 or more per charging port. Factors such as the charging rate (kilowatts), additional features, brand reputation, and installation requirements determine the overall cost. High-power Level 3 chargers capable of delivering 350 kW charging speeds may be even more expensive.
It is essential to consider the intended use and charging requirements when selecting a charging station for cars. While Level 3 chargers offer faster charging, they may only be necessary for some locations, and Level 2 chargers can provide sufficient charging capacity at a more reasonable price.
Installation and Infrastructure:
The installation cost of a commercial EV charging station depends on many factors, including site requirements and electrical infrastructure modifications. The installation process may involve trenching, running new electrical lines, upgrading electrical panels, and installing additional wiring. These tasks can be labor-intensive and require a team of skilled licensed professionals, contributing to the overall expense.
The intricacy of the installation may vary depending on the site’s characteristics, such as distance from the electrical source, accessibility, and existing infrastructure. The installation cost will be higher if the site requires extensive electrical upgrades or modifications. Factors like the need for permits, inspections, and potential coordination with utility companies can also affect the installation cost.
Commercial charger stations include networking and software capabilities for monitoring, management, and billing purposes. The features of a commercial EV charging station allow station owners to monitor usage, manage charging sessions remotely, generate reports, and implement billing systems. While these features accentuate the performance and convenience of the charging station, they have additional costs associated with them.
Networking and software fees may include subscription, licensing, or monthly service charges. The of charging a car at an electric car charger station vary depending on the provider and the level of features and support offered.
Permissions and Utility Fees:
Obtaining the necessary permits and complying with local regulations is essential to installing a commercial EV charging station. Permitting costs may vary depending on the location and jurisdiction. The process often includes submitting applications, paying fees, and ensuring compliance with building codes and zoning requirements.
Additionally, utility companies may charge fees related to electrical usage and demand charges. These fees are based on the electricity consumed during charging sessions and the maximum demand on the electrical grid. Understanding the utility company’s fee structure and potential demand charges is vital for estimating the ongoing costs of operating an electric car charger station.
In some cases, additional equipment may be needed to ensure the functionality and safety of the EV charging station. This can include signposts, banners or posters to indicate the presence of charging stations, parking lot modifications to mark designated charging spots, adequate lighting for safety, and security features to prevent theft or vandalism. The cost of additional equipment should be included in the overall budget for a commercial EV charging station.
Cost Recovery and Revenue Generation
Commercial EV charging stations are an investment that offers the potential for cost recovery and revenue generation. Here are a few ways to retrieve expenses and generate profits:
Charging station owners can charge users for the electricity consumed during charging. Fees may vary based on factors like charging duration, speed, and location, allowing flexibility in pricing to meet different needs.
Membership and Subscription Models:
Membership and subscription models for commercial EV charging stations create recurring revenue streams from regular users. These plans often lure customers with benefits like discounted charging rates and additional perks, building loyalty and encouraging more frequent use of commercial charger facilities.
Advertising and Partnerships:
EV charging stations can serve as advertising platforms for local businesses and services. Partnerships with nearby companies, such as restaurants or retail stores, can provide additional revenue through advertising or revenue-sharing agreements.
Electric car Charger station owners can participate in utility demand response programs, encouraging reducing electricity usage during maximum demand periods. These programs offer financial rewards for managing charging loads effectively.
In conclusion, the cost of installing and operating commercial electric car charger stations varies based on factors such as charger type, power capacity, installation requirements, and additional features. Level 2 chargers are more affordable but slower, while Level 3 chargers offer Rapid charging at a higher cost. Factors like installation, networking, permits, and additional equipment add to the total expenses. However, commercial EV charging stations can be seen as investments with potential cost recovery and revenue generation through user fees, membership models, advertising partnerships, and participation in demand response programs. over, as the electric vehicle industry continues to evolve and grow, the cost of commercial EV charging stations is expected to decrease, making them more economically feasible and accessible for businesses of all sizes.
Transitioning to a cleaner and more sustainable transportation system requires establishing a stable charging infrastructure for electric vehicles. Investing in commercial EV charging stations is a strategic move to support this transition and help create a cleaner and brighter tomorrow.
What It Takes to Build a Commercial EV Charging Station
If you want to build a commercial EV charging station at your dealership, you need to consider level 2 or level 3 chargers. Level 1 chargers are the cheapest but only suitable for home deployment. There are many factors to consider when budgeting, including permits, ongoing maintenance, and installation costs.
The infrastructure expenses will likely be the bigger component of starting up. These costs are also affected by how much you need to pay to deliver power to the charging station in the first place. If you have to run a new power supply from the mains to your building, you should factor in the labor and material costs of buying and installing the concrete, electrical conduit and wire, and electrical panels.
Installation expenses will vary depending on how many chargers you install, the manufacturer, and output levels. You also need to figure out landscaping, lighting features, and other aesthetics to prepare the structure for operation. Then, you may need to add the cost of permits and applicable taxes.
According to WattLogic[2], the cost of the charger itself could vary:
- 7,000 for a level 2 charger featuring 48A, 200-240V AC and 4 to 8 hours of charging
- 75,000 for a level 3 charger featuring 250A, 480V DC and 15 to 30 minutes of charging.
There are several options in between these two extremes. The final cost will depend on the number of chargers and the installation work. Still, it could decrease when you consider any incentives or utility rebates you may get when you install a commercial EV charging station.
Financing Options for Commercial EV Charging Stations
You may also be able to finance the solution in one of three different ways, but you would be passing on the cost to consumers instead of offering the EV charging stations as a value add.
Turnkey Installation
You can choose a turnkey installation where the providing company covers everything. You’ll work with a company that handles all the design, product selection, permits, incentives, rebate management, and installation.
Monthly Subscription
This option helps you avoid all the upfront costs. You would need to compare this to potential revenues as you would charge people for the service, but this could represent a separate income stream. However, you may also want to offer charging for free as an enhancement to your customer service offering.
Cost Revenue Splitting With a Provider
You can get the EV charging company to install the station for you and operate it commercially. They will collect the revenues and share the money with you instead. As a further variation, the company might split both the cost of installation and the revenue with you, which will typically give you a higher share of that revenue.
How a Commercial EV Charging Station Could Benefit Your Dealership
It seems clear that there will be significant demand for new commercial EV charging stations in the decade ahead. Here are three ways you could benefit by adding a commercial EV charging station to your dealership.
Shows Your Dealership’s Commitment to Industry Progress
By showcasing their dedication to reducing carbon emissions and supporting the EV revolution, car dealerships can enhance their brand image and differentiate themselves from competitors.
Enhance the Customer’s On-Site Experience
By providing charging infrastructure, dealerships can transform these waiting periods into valuable customer engagement opportunities. They can create comfortable and welcoming spaces with amenities such as lounges, Wi-Fi access, and refreshments, making the charging experience enjoyable and convenient. This not only enhances customer satisfaction but also presents an opportunity for dealerships to showcase their latest models, accessories, and services.
Expand Service Department Offerings
By fostering long-term customer relationships. EV owners often require ongoing maintenance and support, and by being the go-to location for charging, dealerships can establish trust and loyalty. They can offer additional services such as EV-specific maintenance, battery health checks, and exclusive discounts, ensuring customer retention and repeat business.
Types of electric vehicle chargers
There are three types of EV chargers—Level 1, 2, and 3— that use two types of power: Alternating Current (AC) and Direct Current (DC). The main difference between AC and DC power is charging speed.
EV batteries only accept DC power—Level 1 and 2 chargers distribute AC power, so the conversion to DC power occurs inside the EV battery, leading to slower charging times. Level 3, or DC fast chargers, convert AC to DC power inside the charging station, not the vehicle’s battery, for the fastest charging times.
40 hours to charge BEV from empty
AC power; slowest charger; standard for home charging
4-10 hours to charge BEV from empty
AC power; most commonly found at commercial or public charging stations
20-60 minutes to charge BEV from empty
DC power; also known as DC fast chargers, DCFC, or superchargers; needed for MHD vehicle charging
Calculating EV fleet charging costs
Several factors contribute to the cost of charging such as battery size, cost of electricity, and location of the charging station. Despite these factors influencing the price range of charging, the average cost to fill up a tank of gas is still around 350% more.
Battery size
The first, and constant, charge factor is battery size. The smaller the battery’s kilowatt-hour (kWh) capacity, the less energy it will need to reach a full charge. From there, the battery size, calculated in kWh, is multiplied by the cost of energy which averages
Installation costs of EV charging stations
EV charging costs can be unpredictable on the road, leading fleets to install their own charging systems and infrastructure. Charger level and quantity are the primary cost variables when purchasing charging stations.
Type of chargers
- Level 1: These chargers are used for residential charging and are not suitable for commercial fleets as they are slow and can overload circuits.
- Level 2: The cost of installation ranges from 450,200 to 6,000 per charger. Level 2 chargers are suitable for light-duty trucks and passenger vehicles in a fleet.
- Level 3 (DCFC): The cost of installation ranges from 30,000 to 80,000 per charger. Level 3 chargers are required for medium- and heavy-duty fleet vehicles.
Number of chargers
Most level 2 chargers will complete a charge in about six hours—one charger per vehicle is often recommended for fleet depots that house light-duty EVs overnight. The recommended number of DC fast chargers at fleet depots will vary depending on your EV needs—maybe a few superchargers are needed to charge light-duty vehicles quickly during the day, or maybe your fleet is starting to roll out heavy-duty EVs and requires one DCFC per vehicle.
Charging station rebates and incentives
Similar to purchasing electric vehicles, there are tax credits and rebates available for purchasing charging stations. The current federal tax credit, Alternative Fuel Vehicle Refueling Property Credit. covers up to 30,000 or 30% of installation costs of EV charging stations.
Local government incentives are widely available as well— Charge Ahead Colorado offers grants up to 80% of installation costs for all levels of chargers, while California’s CALeVIP program grants up to 80,000 per commercially installed DCFC. Tax incentives by state can be found on AFDC.
Other cost factors
- Solar power: Fleet facilities can install solar panels at their depots to offset or even cover the electricity costs their vehicles consume. There are additional costs to installing solar panels but most providers will assist you with ROI calculations.
- Networked vs. non-networked chargers: Networked chargers have built-in software and Wi-Fi to provide usage data, diagnose problems, balance peak-time loads, and more, while non-networked chargers are less expensive by only providing electricity without internet capabilities.
.10 per kWh in the U.S. You can roughly calculate the cost to charge your EV with this equation: Battery capacity kWh × cost per kWh = charging cost
For example, the battery size for a Tesla Model S is 100kWh so the cost to charge from empty, on average, is 10.
Time of use
The next factor is time-of-use (TOU) where early-bird, peak, and off-peak hours affect pricing. While TOU hours can vary per electricity provider, they typically fall into these timeframes:
- Early-bird hours are from 12 a.m. to 8 a.m. and have the lowest cost.
- Peak hours are from 4 p.m. to 9 p.m. and have the highest cost.
- Off-peak hours are from 8 a.m. to 4 p.m. and 9 p.m. to 12 a.m. and fall in between early-bird and peak hour pricing.
Both demand and energy supply affect pricing in each TOU window. During early-bird hours when demand is the lowest, electricity rates mirror this with the lowest rates. During peak hours when solar energy is decreasing but demand is high, the cost of electricity is the highest. During off-peak hours when solar energy is most plentiful or demand is decreasing, electricity rates are not as costly as with peak hours.
Location: private vs. public stations
Another major factor in charging cost is location. Charging via private stations, like at a fleet depot or at home, will yield closest to the charging cost calculation above. Public charging stations, like those in retail or commercial parking lots, will average higher rates with more variability. Some public charging networks, like EVgo. have rolled out monthly subscriptions where members receive better rates than non-members, while other providers charge per minute of use instead of by kWh consumed. State and metropolitan area also affect rates—for example, Los Angeles has some of the most expensive electricity rates in the U.S.
Type of charger
Using DC fast chargers, or superchargers, will be more expensive than level 2 chargers since DC fast chargers require more energy. A common strategy for optimized cost and timing is to charge your EV to 80% with a level 2 charger, followed by a supercharger for the remaining 20%.