Now you know how to start a charging business and what sort of profits you will be making. Let’s dig deep into making money and making better returns.
How to Make Money?
The profits of the EV charging station business come from charging costs, higher traffic, affiliated business revenue, advertising revenue, and brand value enhancement. Places that install EV charging stations will be attractive for drivers looking for convenient, fast charging options.
DC fast chargers have emerged as an attractive business opportunity for entrepreneurs to meet this need and make money with EV charging stations.
1. EV Charging Revenue
Direct charging fees are the core income of an EV charging business. Well-located stations with better user conveniences feature high throughput.
Operators may set prices based on energy or charging time. Atop this, some operators set fixed prices throughout the day, while eMotion provides the option of adjusting prices at different times (ToU Tariff).
For example, in Sri Lanka, the charging fee for public AC charging is about 70 LKR/kWh, and public DC charging is about 130 LKR/kWh. This charging method, based on energy and/or time, is beneficial for improving utilization and preventing the occupation of parking spaces.
2. Affiliated Business
Installing fast DC EV chargers near commercial areas, such as Retail Shops, Hotels, Malls, Cafes, Cinemas, etc, allows operators to benefit from increased visits. Nearby amenities give drivers an incentive to linger longer while their EVs charge.
In addition, EV chargers in these areas can “cooperate with” existing convenience facilities, such as comfortable rest areas and catering services, allowing customers to enjoy convenience and comfort while waiting. This can potentially affect the user’s future charging habits.
3. Advertising Revenue
Large and bright displays that incorporate high-powered chargers can capture the attention of waiting drivers or pedestrians passing by the EV charging points.
Operators can collaborate with companies or brands to rent out advertising displays and charger shelters on commercial charging stations. It can create additional revenue for operators, and the brand also receives targeted exposure opportunities!
4. Government Subsidies
Although not available in Sri Lanka, many countries actively support widespread public fast-charging networks through subsidies. These incentives lower the initial investment of an EV charging station business and make stations financially more viable.
However, the government has been flexible in regulations so far, promoting the Charger installations. Like fuel stations, the charging business will be regulated and licensed soon, and the first-mover advantage is always there.
Global subsidy schemes:
- The UK’s Workplace Charging Scheme (WCS) provides financial support for EV charger installation for businesses. It covers up to 75% of the cost, with a maximum cost of £ 350 per socket (up to 40 sockets).
- The Spanish government directly subsidizes EV charging stations with power below 50 kWat a rate of 30% of the installation cost for large enterprises, 45% for medium-sized enterprises, and 55% for small enterprises.
- Many Governments and local authorities also offer tax discounts or exemptions for companies providing public charging station amenities. For example, the NSW government has launched a $20 million funding initiative aimed at promoting electric vehicle charging stations in thousands of tourist destinations in regional NSW. Users who purchase and install Beny / EVB AC charger piles will be eligible for subsidies from the NSW government.
- However, in Sri Lanka, there is a low-interest bank loan facility called “E-Friends” for eligible customers.
5. Brand Value Enhancement
Partnering with Strong global EV charging equipment brands provides a win-win opportunity through the charging station business. The Beny fast and stable charging technology and eMotion convenient intelligent management system have created a good charging experience for users, directly affecting their impression and brand reputation.
Over time, the network of EV chargers becomes a trusted destination that strengthens brand value for operators.