Installing a Commercial EV Charging Station
Thinking about installing a commercial EV charging station? There’s no better time to do so: By 2030, more than 18 million electric vehicles (EVs) will be on the road in the U.S., according to the Edison Electric Institute. And those EVs will require an estimated 9.6 million charging ports.
Installing EV stations now will put your business in a position to reap numerous benefits and value-creation opportunities ahead of your competition. However, installing on-site EV chargers is a complicated undertaking—your organization can benefit from a strategic partner like Future Energy to help guide you through the process.
Commercial EV Charging Station Types and Costs
There are three different types of EV charging units available—level one, level two, and level three. Each type has different costs and charging capabilities. But businesses usually gravitate toward level-two chargers, which provide the right balance between cost and charging speed.
Level one: As a residential charging station, a level-one charger costs around 600 and uses a dedicated 120-volt circuit. With this charging station, a driver can fully charge a car at home within 24 to 40 hours.
Level two: The most common type of commercial EV charging station, level-two chargers feature two ports running on 240-volt circuits. Level-two chargers cost around 7,200 and require between eight and 10 hours to charge a car fully.
Level three: Otherwise known as direct-current (DC) fast chargers, these robust industrial stations use 480-volt direct current to charge a car fully in about an hour. Equipment charges and upgrades to infrastructure make DC fast chargers the most expensive, at around 50,000.
The Best Electric Vehicle Charging Station for Your Business
Choosing the right EV chargers for your business is crucial. Future Energy has partnered with ChargePoint, the world’s leading network of electric car charging stations, to create the next step in EV mobility solutions for businesses. ChargeParc™ is a complete turnkey environment that combines first-rate chargers from ChargePoint with exclusive, intelligent software from Future Energy called Interface.
Interface maximizes value from data capture and management. It connects outside EV charging stations with all existing intelligent devices and systems on your property. And it displays data from both environments on a single visual dashboard for clear data monitoring.
Interface can support numerous use cases. For instance, its resource analytics and control features proactively alert you when you are close to peak load demand and advanced energy modeling, helping you save on energy costs.
Installing Your Electric Car Charging Stations Step-by-Step
Installing a commercial EV charging station requires coordinating numerous contractors, understanding utility company requirements, and identifying available tax credits and incentives to reduce costs. That’s why working with an experienced, approved partner like Future Energy can help streamline the process and ultimately save money.
Step One: Site Analysis
Installing commercial EV charging stations begins in the boardroom with a discussion about your company’s goals and expectations. Then Future Energy account executives engage with your team for a site analysis, part of which covers the following:
- Site location: Which location on your property is ideal to install electric car charging stations?
- Lighting and security: Does the site meet lighting and security requirements?
- Electrical infrastructure and utility needs: Is the electrical service adequate? Or does your utility company need to bring in additional power?
Step Two: Infrastructure Planning
An infrastructure analysis precedes installations. At this stage, Future Energy account executives work with electrical contractors to draft a one-line diagram, a single-page document that represents the electrical distribution for your site.
Additionally, account executives may convene with contractors to go over other infrastructure requirements, such as boring holes, pouring concrete, trenching, and landscaping.
Step Three: Utility Assessment
Next comes the utility assessment. Future Energy helps your business identify and procure grants that can cover up to 90% of construction costs for your EV charging stations. These incentives include federal tax breaks, state and local credits, and utility company rebates.
Available incentives vary widely by state and local jurisdiction as well as by utility company. Having a partner like Future Energy who is familiar with the landscape is key to procuring all available funds.
Step Four: Environment Integration
A number of factors go into building the right EV charging solution for a given location. The type of EV charger—level two or three in a commercial environment—is instrumental. Furthermore, the environment must feature a safe, well-lit, comfortable area for drivers to charge. All of these elements combine to create a final proposal that details the solution that Future Energy recommends for your business.
Step Five: Final Preparation and Installation
To obtain all available incentives for an electric vehicle charging station, your business must prepare the necessary documents to reserve funding for the project. This paperwork may include filings with the Environmental Protection Agency, state and local governments, or the utility company.
Once you receive approval, it’s time to schedule the project and order the necessary materials. At the site, engineers complete the infrastructure work: running conduits, piping, and electrical wires as necessary.
At this point, contractors install light poles and other fixtures, set security cameras, and complete all extra construction in and around the charging area. In addition, the software deployment team at Future Energy installs all the necessary routers and other equipment to connect all of your property’s Smart devices and systems to Interface.
Then the team conducts training on Interface. The team shows you how to use Interface to help optimize your business’s energy management and support other use cases. Finally, the utility walkthrough takes place, and you file the last of the paperwork.
Finding the Right Partner
Installing a commercial EV charging station can be complicated if you try to manage it yourself. Future Energy offers concierge-style service, walking you through every step from start to finish. With Future Energy, you hire just one company to coordinate all the contractors, organize and file the appropriate paperwork, and follow up with utilities. Find out how Future Energy can help guide your company through the process.
Sam DiNello is Chief Executive Officer at Future Energy. He is an expert in the EV infrastructure space and passionate about innovative data-driven solutions that help companies access real-time intelligence for real-time action.
Public charging—the CPOs’ home turf—is taking off
The required configuration and specification of EV-charging infrastructure varies, depending on use case, customer needs, and the parties involved (Exhibit 1). A single-family or multifamily home or an apartment complex, for example, might have private parking equipped with chargers. These are generally alternating-current (AC) units that charge a vehicle’s battery in eight to ten hours, presumably while the car is parked at home. Workplaces may offer their employees a similar system, typically paid for by the employer. In public charging, by contrast, a vehicle owner pays a premium to have the battery recharged, using either AC charging boxes or direct-current (DC) fast chargers, in a public parking lot.
At the moment, CPOs tailor their offering to either of two public fast-charging use cases. The first, on-the-go charging, is typically a pricier option but also delivers the highest charging speeds. The more moderately priced alternative is destination charging: drivers can recharge (or just top up), usually with an AC charger, while they spend a couple of hours shopping in a mall or other travel destination.
To make the on-the-go use case work, charger technology focuses on DC chargers that deliver up to 350 kilowatts or even more, allowing Rapid energy supply to EV batteries. In contrast, standard AC chargers at residences, workplaces, and public slow settings deliver only 11 to 22 kilowatts per hour. DC chargers require a significant investment. Today, the hardware alone costs between 50,000 and 100,000, although costs are likely to fall significantly—about 40 percent—over the next five to seven years. Installation can more than double the cost, depending on the size and layout of the station. DC chargers also require increased effort for installation and high-powered grid connections.
Given the sizable investment required, it is paramount that the delivery of energy provides sufficiently high recurring revenues based on sizable resale premiums or other services offered. In public use cases, CPOs can charge a premium based on location and speed (for instance, kilowatts delivered to the vehicle). If margins and utilization for delivering energy are high enough, the recurring revenues may justify the investment. Given the difficulty of achieving sustainable profits at scale with current EV penetration and utilization levels, players in this market are currently testing various business models, service bundles, and value propositions. Some are working with demand-side partners, such as automotive OEMs and rideshare companies, to create a more predictable and stable business, as well as “stickiness” for customers.
Competition is moving in
Pure-play CPOs, as the first movers in public charging, are beginning to face increasing competition from a range of new entrants and types of businesses, especially in the United States and Europe (Exhibit 2). These vary in the quality of their (micro) locations and their cost structures for reselling electricity:
- Pure-play CPOs, as we have noted, are the first movers in public fast charging. They present a branded face to customers and offer a high-quality user experience in fast-charging infrastructure and software. This experience translates into a value proposition that includes high charging speeds and a relatively seamless customer experience, often at high-quality locations, such as highways and valued retail destinations. Typically, the business model focuses on electricity arbitrage plays. To be price competitive and reduce the risk that comes from the mere sale of energy, CPOs may need to explore partnerships and adjacent offerings (horizontal arrow in Exhibit 2).
- Energy companies (oil and gas players) have started to diversify toward renewables. They are not fully dependent on the short-term profits from charging operations, since funding from other revenue sources is possible. Their FOCUS is to keep the existing fuel retail network’s utilization high. They usually offer EV fast charging at existing gas stations, after adding the necessary infrastructure. These locations are designed for use by internal-combustion-engine (ICE) vehicles, which occupy spaces for significantly less time because fueling them is faster. Energy companies in this category may move away from their existing ICE gas stations to more tailored locations adapted to the needs of EVs (vertical arrow in Exhibit 2).
- Local energy companies (utilities) are well established and well known to customers. Usually, they can also procure electricity at lower price points than their competitors in oil and gas do. They also have the distinct advantage of direct customer access and experience in grid infrastructure. If they sell energy to private homes, they can package well-priced, integrated bundles. In the future, such players can easily adapt Smart-charging and load-management offerings. However, local energy companies in the utilities category have no experience running locations especially tailored to the requirements of on-the-go or destination charging. Additionally, not all utilities are allowed to enter the energy-resale business by their regulator, particularly in the United States.
- Automotive OEMs are expected to step into the electric-vehicle-charging-infrastructure (EVCI) ecosystem, at least temporarily, to enable the adoption of EVs. Some automotive OEMs seem to view this market as more than an enabler and are slowly building profitable, standalone CPO businesses. Still, they have no immediate need to gain margins from energy arbitrage, as long as they are only focused on enabling EV adoption. They hold customer relationships and can create stickiness, especially if the market evolves to PlugCharge. Like utilities, OEMs have no relevant experience with charging locations.
The companies actively trying to move along the EVCI value chain include large players in oil and gas (BP and Shell, for example), OEMs (such as Ford and Tesla), and well-funded pure-play CPO start-ups (like Electrify America, EVgo, and Volta). In the United States, utilities are less likely to pose a material threat to CPOs, because regulators FOCUS on rate-basing grid upgrades more than on utility-owned and.operated networks. Utilities are therefore more likely to be partners or enablers of growth. In other regions, such as Europe, utilities—for example, ENBW and E.ON in Germany and Engie in France—are actively entering the EVCI space.
A comparison between the US EV-charging market and other regions and industries suggests that three to four players can sustain an above-average market share (15 percent or more) in more mature markets. It is too early to tell if this will hold true in all geographies, but we may see more fragmented EV markets consolidate and converge to a similarly concentrated industry structure.
How CPOs can build and sustain competitive differentiation
Some charging operators or segments of CPO networks are not yet profitable because of high installation costs (up to about 200,000 for hardware procurement and installation of a small DC fast-charging site with two chargers and two plugs per charger), demand charges (about five to 20 cents per kilowatt-hour), and underutilization (averaging less than 8 percent across their entire network). For fast chargers, the issue is exacerbated by higher costs and higher surcharges.
For consumers of DC fast-charging (DCFC) services, key decision factors include speed, reliability, and cost of charge. To learn how customers in the United States view these factors, McKinsey surveyed more than 500 US electric-vehicle (EV) owners, who currently tend to be younger, wealthier, and more urban than owners of internal-combustion-engine vehicles. Three DCFC user segments, based on frequency of use, emerged: routine, occasional, and sporadic users.
Across segments, EV owners heavily emphasized the importance of charger speeds and reliability, as well as the cost of energy. This phenomenon was even more pronounced for routine fast-charger users.
Despite the value placed on cost, respondents expressed a willingness to pay a premium for faster charging, the guaranteed availability of chargers (through reservation fees), and additional service offerings at stations. The service respondents expressing the greatest desire for fast-charging stations were coffee shops and restaurants. These findings underscore an opportunity to explore revenue streams beyond energy sales.
As EV drop and EV-owner demographics converge with those of today’s average car buyer, a willingness to pay a premium for these conveniences is not likely to decrease significantly. Pain points remain, however: respondents said the most significant frustration is waiting for a charger. They also have difficulty locating their chosen stations.
The highest risk to attaining profitability is utilization. Increased market competition could drive down charging and charger costs, but installation and land-use costs may increase during the build-out of infrastructure. These conditions mean that price alone cannot be a sustainable basis for competition; CPOs must have a differentiation strategy that delivers a relevant and appealing value proposition to their customers (see sidebar “Electric-vehicle owners’ charging preferences”).
To create and sustain competitive differentiation, CPOs should address several factors (Exhibit 3), including three core drivers of utilization: the quality of the microlocations, charging speed, and scalable partnerships with, for example, rideshare and e-commerce companies. To support ancillary profits, CPOs need to FOCUS on further revenue streams, such as those from adjacent services (for example, reservations), convenience retailing, and advertisements. Finally, the customer experience can create stickiness and can therefore improve both utilization and profitability.
Location. CPOs need to build up a dense, reliable network that provides customers with sufficient scale and carefully selected macro- and microlocations in high-traffic areas (see sidebar “The role of roaming”).
One way to increase the utilization of networks and electric-vehicle (EV) density is roaming, or allowing customers to charge at other networks via roaming cards. Considered a separate step of the EV-charging value chain, roaming involves three participants: a CPO (inbound), an aggregator or mobility-service provider (outbound), and a platform (organizing). Participants have different motivations and can take varying roles.
The need for roaming varies according to differences among EV-charging markets in EV density, competition, and regulation. Utilization levels and the size of existing CPO networks must also be taken into account. Any of three options could become the most popular one: a dominant CPO market, with no broad need for roaming; a dominant mobility-service-provider (MSP) market, with roaming on all CPO networks; or new players that disrupt the market and introduce new types of roaming—for example, advanced PlugCharge—as standard.
Speed. The market for existing 50-kilowatt networks is likely to persist for the next three to five years, but drivers increasingly demand faster charging. Market participants will need to invest heavily in evolving infrastructure that delivers more than 150 kilowatts an hour. Companies are beginning to employ technologies that could deliver 350 kilowatts an hour for passenger cars and 500 to 1,000 for commercial heavy-duty vehicles. To generate strong demand for these technologies, more vehicles that can accept such high charging speeds would need to enter the market (for instance, the majority of the passenger car volume segment would need to be on 800 volt architecture, or further advanced battery technology would be needed across most vehicle classes). OEMs forecast that such vehicles might enter the market over the next two to five years.
CyberSwitching:
CyberSwitching is a San Jose, California based company that provides EV charging solutions for both residential and commercial use. Their charging stations are known for their flexibility and scalability, which makes them a popular choice for a wide range of applications. CyberSwitching’s charging stations offer level 2 AC charging and can be configured to support multiple charging ports using a single circuit breaker, making them an ideal choice for multi-unit residential buildings and commercial properties.
CyberSwitching’s charging stations also offer advanced features such as remote monitoring and Real-time load management, which can help users reduce energy costs and ensure efficient use of power. The charging stations are compatible with every Elecetric car in North America and can charge up to 19.2 kW, allowing for a full charge in just a few hours.
One of the unique features of CyberSwitching’s charging stations is their ability to be networked together, creating a scalable and easy-to-manage charging system for larger properties. These charging stations come integrated with AmpUp software management platform and have the quickest and seamless activation flow in the market. CyberSwitching also offers a range of payment options to generate revenue using the EV Charging stations: Apple pay, google pay and credit card
Overall, CyberSwitching’s charging stations offer a very reliable and scalable solution for both residential and commercial EV charging needs. With their advanced features and with the most cost effective solution in the market CyberSwitching is a top choice for those looking for a reliable and budget-friendly charging solution.
Key advantage: The most reliable and the most affordable commercial EV Charger
Tesla:
Tesla, based in the United States, is a well-known company that produces electric vehicles and also provides EV charging solutions. Tesla’s charging stations, known as Superchargers, are designed specifically for Tesla vehicles, providing fast and convenient charging for Tesla owners. The Superchargers offer DC fast charging, allowing Tesla owners to charge their vehicles up to 80% in just 30 minutes.
Tesla also offers a network of destination chargers, which are level 2 AC charging stations located at hotels, restaurants, and other public locations. These chargers are designed to provide convenient and accessible charging options for Tesla owners while they are out and about.
Tesla’s charging stations are connected to the Tesla network, which allows for remote monitoring and control of the charging process. This means that Tesla owners can easily locate charging stations using their vehicle’s navigation system and start and stop charging remotely using the Tesla mobile app.
Tesla’s charging stations are exclusive to Tesla vehicles, which means that they are not compatible with other EV models. However, Tesla’s network of Superchargers and destination chargers is rapidly expanding, making it easier for Tesla owners to find charging options while on the road. With their fast charging speeds, convenient network, and seamless integration with Tesla vehicles, Tesla’s charging solutions are a top choice for Tesla owners.
Key advantage: The best charging solution exclusively for Tesla owners
ABB:
ABB, a Switzerland-based company, provides a range of EV charging solutions for both private and public use. ABB’s charging stations offer both level 2 AC charging and DC fast charging, allowing for fast and convenient charging of EVs. ABB’s charging stations are also designed to be flexible and scalable, making them suitable for a wide range of applications, from residential homes to public charging stations.
ABB’s charging stations also offer advanced features such as remote monitoring, energy management, and load balancing, which can help reduce energy costs and ensure efficient use of power.
In addition, ABB’s charging stations are designed to be durable and weather-resistant, making them suitable for use in harsh outdoor environments. ABB also offers a range of payment options, including pay-as-you-go and subscription plans, making it easy for users to pay for their charging needs.
ABB’s charging stations are part of their broader portfolio of EV charging solutions, which includes charging infrastructure management systems and fleet charging solutions. With their advanced features, ABB’s charging solutions are one of the top choices for both private and public EV charging needs.
Key advantage: Innovative charging solutions
EVgo:
EVgo is a US-based company that specializes in providing public charging infrastructure for electric vehicles. EVgo offers a network of DC fast charging stations located across the United States, which can charge most EV models up to 80% in just 30 minutes. EVgo’s charging stations are also equipped with level 2 AC charging, providing even more flexibility for EV owners.
One of the key advantages of EVgo’s charging stations is their reliability and accessibility. The company’s charging stations are available 24/7, and the network is rapidly expanding, making it easier for EV owners to find charging options while on the road. With more than 850 DC Fast Charging Stations on their network is one of the largest DCFC networks in America.
In addition, EVgo offers a range of payment options, including pay-as-you-go and subscription plans, as well as partnerships with automakers and fleet operators to provide discounted or free charging to their customers. EVgo’s charging stations are also designed to be easy to use, with simple and intuitive interfaces that make the charging process hassle-free.
Overall, EVgo’s charging solutions offer a reliable and accessible option for public EV charging needs. With their fast charging speeds, advanced features, and expanding network, EVgo is a top choice for those looking for a convenient and efficient way to charge their electric vehicles quickly.
Key advantage: Reliable DC Fast Charging stations
Star Charge: Asian Superstar in EV Charging
Star Charge is a company based in Changzhou, positioning itself as the leader in China.
In terms of their charging solutions, they offer a range of options, from large parking lot-like charging canters to smaller individual charging stations in residential complexes.
over, they currently operate 139,000 charging stations, which puts them in second place with a market share of about 10%. Additionally, they have garnered a significant customer base.
They boasting over one million active private users and 100 corporate clients, including renowned international brands such as Jaguar and Hyundai Motor.
It’s worth noting that Star Charge has been profitable for three consecutive years. over, they have a proprietary 500kw charging station capable of charging an electric car in just 10 minutes.
Schneider Electric: Best EV Home Chargers
Schneider Electric is an EV charging station company becoming even more involved in the electric vehicle industry. They are well-known for producing electrical equipment such as fuses, circuit breakers, and sensors.
However, they have expanded their offerings to include electric vehicle charging solutions as well.
Schneider Electric provides various energy solutions for electric vehicle drivers. For example, charging equipment for public use in parks and streets, fast charging solutions, wall models for home charging, and energy management systems for optimized EV charging.
They aim to provide more affordable options for both AC and DC charging, with their DC units currently capable of charging speeds of up to 24 kW.
While Schneider Electric may not be a household name, they are recognized within its industry for its data center solutions, including uninterruptible power supply units that keep servers running if the power grid goes down.
They have a range of electric vehicle charging solutions designed for both home and public use.
With its expanding presence in the EV charging market, which is fast growing, Schneider Electric is expected to become a significant player in the future.
Hyundai: EV Charging Stations
Hyundai and Kia have joined forces in the automotive industry to create charging solutions for electric vehicles.
In particular, Hyundai provides fast charging services through IONITY, with speeds reaching up to 350kW. Notably, these charging stations can be easily located using the Charge MyHyundai app.
In addition to their fast-charging services, Hyundai and Kia are also collaborating to develop a wireless electric vehicle charging system, as part of their integrated autonomous car offering. As a demonstration of their progress, they have already showcased an autonomous electric car parking over an EV charging point.
over, Hyundai has introduced solar-powered electric vehicles to the market, integrating a solar panel into the vehicle’s roof. This innovation is in addition to their existing solar charging system for cars.
For businesses considering investing in EV charging stations, choosing the proper hardware manufacturer is crucial to ensuring a successful and profitable investment.
Choosing the best option between all of these EV charging station companies can depend on the type and quality of EV charger you are looking for, the type and amount of EVs you want to charge, the additional services and software you might require, and the available budget for this.
The fact is that in this article we have described only the ‘strongest’ ones on the market. But also, worth mentioning are:
So, we are curious to witness which form of “new energy,” whether an electric or any other, will emerge as the primary alternative to gasoline in the coming years.
We will make sure to cover the developments as extensively as possible!
And we really hope we have helped you carefully evaluate the options and select a reputable, experienced EV charging station company mentioned in this blog.
We are sure, we will undoubtedly witness a rise in EV infrastructure in the future. We can confidently say that the future of EV charging and its challenges are looking bright!