There are numerous advantages when investing in commercial EV charging stations.
Before we deep dive into the incentives of investing on a EV station, let’s take a brief look at the current EV landscape. For the past few years, the EV industry has made staggering leaps by capturing the attention of newcomers to the auto market. As a result, the demand for electric vehicles has increased year-over-year, with no signs of decreasing. According to the National Renewable Energy Lab, from 2020 to 2021, the number of registered Electric Vehicles rose by 42% nationwide.
The EV frenzy has even helped to introduce a new concept to the market: EV subscription! Why buy? or lease? When you can subscribe. Autonomy, is behind this visionary approach, which lowers the price of a Tesla by a fraction of the cost. In addition, it eliminates long-term commitments and has fewer requirements than leasing.
While this concept is currently available in California, there are plans to expand rapidly. Recently, it was reported that the electric car subscription company placed an order of 23,000 electric vehicles with 17 different global electric automakers. Autonomy wants to meet customers at different price points by providing alternate choices beyond Tesla.
As electric vehicles hit the road, an imminent charging infrastructure problem needs to be resolved. If you live in a large metropolitan city, chances are a few grocery stores, businesses, and shopping malls have a few Volta or Rivian EV charging stations in operation. However, this may not be true for small towns and cities who are slowly adapting to this new concept. For investors and business owners, a solution to this problem may come with great rewards.
Top Five Benefits of Investing in EV Charging Stations
- Attract customers
It provides a free benefit and convenience to attract paying customers.
- Brand awareness
Excellent avenue for expanding brand recognition.
- Collect and sell carbon credits
Businesses can gain and sell carbon credits to corporations.
What is a carbon credit? A carbon credit is a permit representing 1-ton of carbon dioxide withdrawn from the atmosphere. Like Tesla’s business model(sells carbon credits), large corporations can purchase carbon credits to offset their greenhouse gas emissions footprint.
- Adopt or increase sustainability goals
EV charging stations are a great avenue to help businesses adopt or increase green sustainable goals.
- Tax credits
Businesses and owners can gain tax credits for investing in the installation of EV charging stations.
EV Charging Station Rebates
Businesses can enjoy additional benefits in the form of rebates. Several utility providers and certain government agencies have allocated special rebates if certain criteria is met. The most common, focuses on the type of commercial charging station that’s installed. In certain states, applicants that install Level-1 and Level-2 EV charging stations may receive up to $4,000 and $10,000 for installing a direct current fast charging (DCFC) station.
A current list of incentives and rebates for each state can be found on The U.S Department of Energy website under the State Laws and Incentives. After selecting the desired state, the information can be found under the State Incentives or Utility & Private Incentives.
Rebates for the state of Texas can be found here: Electricity Laws and Incentives in Texas. The list is updated frequently. One thing to consider, is that the available rebates for commercial EV charging stations may vary from state-to-state in addition to the particular set of requirements.
Kilgore Industries has partnered with Volta and Rivian as a preferred turn-key EV contractor. For more information about planning, design, and installation of EV Charging Stations, please click on more info.