How to Start EV Charging Stations Business

Analysts predict that the EV market will be worth more than $350 billion by 2028, marking a turning point for the industry. As consumers are switching from gas-powered vehicles to EVs in large numbers, there is an increased demand for the availability of EV chargers. The electric vehicle charging market is growing rapidly due to this demand and is expected to reach nearly $120 billion by 2028.

Now is the time to start an EV charger business or expand your current company to include EV charging if you have been thinking about it. You can tap into a growing market and help usher in a more sustainable tomorrow by providing electric vehicle (EV) charging services. Are you starting an EV charging station business? This article will guide you through the steps, from choosing a business model to selecting the appropriate software and hardware.

Market Stats for EV Charging Stations Business

• BloombergNEF predicts that electric vehicles will account for 54 percent of all new vehicle sales by 2040. There will be a high demand for EV charging stations in the future.
• According to the Society of Motor Manufacturers and Traders (SMMT), the number of pure electric vehicles on UK roads as of October 2020 was 92,913, while the number of plug-in models was 144,335.
• The UK government's plan to outlaw the sale of new petrol and diesel vehicles by 2030 is likely to continue this pattern.

Types of EV Chargers

Electric vehicle chargers can be one of three varieties, depending on the level of charging that they provide:

Level 1 Charging (Slow Charging)

This equipment is just basic and slow-charging. It operates on 120 volts of Alternating Current (AC), making it suitable for use in residential settings. This setup can charge a battery in about 8-12 hours. Most EV owners charge their vehicles at home while they sleep.

Level 2 Charging (Standard Charging)

A 240-volt (V) AC plug fully charges it in about 4 to 6 hours. Any electric vehicle can work with it, including those that require a plug-in adapter. These stations are commonly located in parking garages, apartment complexes, and office towers.

Level 3 Charging (Rapid Charging)

A Direct Current (DC) plug can charge up to 80% of a 480 V DC battery in 20 to 30 minutes. However, it is only usable by some electric vehicles. They can be installed only in public charging stations.

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Choosing the Right EV Charging Station

Before installing the right EV charging station, knowing what to look for in a charging solution is important because they are all different. Make sure to choose something dependable, easily accessible, and smart for your company's choice of AC or DC (fast charging) stations. This will represent your company to customers.

Reliability: The stations' reliability requires longevity and adaptability to changing market conditions.

Safety: Meeting all national and international standards for quality and safety is important for the charging equipment. A charger must be durable enough to operate in any climate. It should withstand impact while charging without damage.

Software: The software of the stations should enable remote access for maintenance, management, and control.

Requirements For Setting Up a Charging Station

The electric vehicle charging industry is growing rapidly due to the low initial investment and ongoing maintenance of charging stations. Fewer people are required to run the business.

Here, we will detail what you need to know to install a charging station.

Area: The location of EV charging stations is crucial. The space needed to charge electric vehicles and accommodate any other activities on the site will vary. The charging equipment requires only about 10 square feet of space, but the more important consideration is where to park and move the vehicles around. You would only need as little as 100 square feet.

Manpower: Most reputable charging infrastructure original equipment manufacturers (OEMs) offer a turnkey solution (equipment + software + mobile app), so a well-designed charging station does not need a human attendant. From handling the entire billing process digitally, from receiving payments to sending them out, everything is done streamlined. Therefore, only personnel responsible for the machine's physical safety are needed.

Marketing: When you first get started, marketing online becomes the most effective way to spread awareness of your brand. However, businesses can expand using YouTube, Facebook, LinkedIn, advertisements, and blogs.

License: This business has a big advantage when getting licenses. There are no license requirements.

Minimum Requirements: When starting a business, you should find a reliable EV charging OEM that can supply a manageable, high-quality solution. To get started, you should select the optimal location for installing the charging station and set up the electrical load according to the capacity of the chargers. Assessing a startup's commercial viability can be aided by a reliable charging infrastructure technology provider.

The Revenue Model of EV Charging

Factors like location and industry can determine the various forms of business plans for electric vehicle charging stations.

Freemium Model

One way to draw in more people immediately is to provide EV charging stations at no cost to employees, guests, or customers. Level 2 chargers are ideal for this format, which customers use when spending more than 45 minutes in your establishment.

Fees For Charging

EV charging businesses commonly and popularly use a small fee model to recover electricity, maintenance, and other infrastructure costs. Owners of electric vehicles are accustomed to paying cash to recharge. For instance, Tesla shrewdly established charging fees for its entire charging network as part of its cost recovery model.

• Subscription: Subscribers can access unlimited use of charging stations for a set monthly or yearly fee with this model.
• Pay-per-use: The amount of time or power used determines the cost, and this model charges the user accordingly.
• Partnership: Other establishments work with you to provide EV charging stations for guests.

Profit Making Charges

In this model, the fees are higher than those of competing EV-charging business models to make a profit. If you have a charging station in a remote area with few other options, such as a stretch of highway, operating your EV charging business could be the best way to make money.

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Steps to Start EV Charging Stations Business

1. Do Market Research

Before investing money into a business, conduct market research to identify your ideal clientele, major competitors, growth opportunities, and threats.

Here are some questions to know answers about:

• Who is your target market? What are electric vehicle drivers and owners' needs, preferences, and pain points?
• Who rivals you in the electric vehicle charging station industry? Can you describe the advantages and disadvantages of them? How can you differentiate yourself from the competition?
• What are the current and upcoming trends in electric vehicles? How can they benefit you?
• Where can I find information about the rules and regulations for installing an EV charging station? What authorizations and registrations do you need?
• What is the cost of starting an EV charging business, and what dangers can potentially arise?

When conducting market research, you have various tools, including online databases, industry reports, surveys, interviews, focus groups, etc.

2. Choose A Location

Placing your electric vehicle charging station is crucial for its viability. It is important to find a convenient spot for people who drive electric vehicles and those who own them. When you decide on a location, it's important to think about things like:

• The number and type of EVs in your area
• Availability and cost of land or space.
• Other conveniences like hotels, restaurants, and shops are near the location.
• Nearby gas stations and EV charging stations.
• Development and growth possibilities.

You can easily find the right spot for your EV charging station with the help of online mapping and real estate databases like Google Maps, Apple Maps, Zillow, LoopNet, etc.

3. Decide On A Business Model

A variety of business models can function on your electric vehicle charging station. Professionals in the field recommend additional popular models. You should choose a business structure that suits your objectives, resources, and audience.

4. Buy or Lease Equipment

What you want to offer at your charging station will determine the features you need. It may also vary from country to country. You can verify if your business complies with local standards in the country where it is based. However, it primarily has three pricing tiers.

• Level 1: With a regular 120-volt wall outlet, you can add 5 miles to your battery in an hour using "Level 1" charging. You can charge it in the office or at home.
• Level 2: Your battery's range will increase by about 25 miles per hour when you charge at Level 2 from a 240-volt outlet. You can use it for commercial or public charging purposes.
• Level 3: A Level 3 charger can add about 200 miles to a battery in an hour using a high-voltage direct current (DC) connection. You can use it for either rapid or turbocharging.

You must also consider equipment such as cables, connectors, meters, and signs.

You can purchase or rent EV charging infrastructure depending on your needs and finances. Leasing equipment offers several advantages, including providing lower initial costs, allowing tax deductions, offering maintenance assistance, and giving the option to upgrade or replace machines as needed. Purchasing EV charging equipment outright offers many advantages, including the ability to depreciate the cost over time. You can compare the price, quality, warranty, service, and reputation of various EV charging machine vendors and suppliers.

5. EV Charging Software Solution

If you want to maximize the efficiency and profitability of your charging stations, you need essential EV charging management software. The charging station software should give you a bird's-eye view of the entire electric vehicle charging network. With the right charging management software for EV, you can set prices, power output, user permissions, and more for each charging station individually.

Many excellent providers of charging management software exist, and each provider specializes in their area. You can find a service with more features and a lower price than another. When deciding on an EV charging management system, finding the sweet spot between your needs and your willingness to invest is key. The Hyperlocal Cloud's software solutions provide access to information about your EV chargers whenever and wherever you need it, regardless of your location.

6. Promote Your Business

After you install a charging station for EVs, you'll want to spread the word to as many people as possible. One option is constructing an EV charging station app that advertises your services, prices, locations, and customer reviews. Use social media sites like Facebook, Twitter, and Instagram to promote your electric vehicle charging services throughout the province or region.

Importance Of Mobile App Or Portals in Growing The EV Charging Business

• A mobile app can greatly assist electric vehicle (EV) charging businesses in several ways.
• Mobile apps give customers up-to-the-minute details on charging station accessibility, pricing, and duration.
• Business apps allow customers to schedule and pay for charging sessions in advance, reducing wait times and adding convenience.
• Applications track user actions and preferences, which inform pricing and promotion decisions.
• EV charging business apps can incorporate rewards, discounts, feedback options, and other features to boost customer loyalty and satisfaction.
• If you want to build an app for your electric vehicle charging business, you need to know the development process, and experts at Hyperlocal Cloud can help you know all the ins and outs of the business.

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Mobile App Technology For EV Charging Business

On demand mobile apps have made it possible for owners of electric vehicles to easily locate, use, and pay for charging services in their area. EV charging station apps can include a variety of useful functions, such as providing real-time station availability, allowing users to search for stations based on location, enabling station reservations, giving turn-by-turn directions, offering in-app purchases, providing loyalty programs, and allowing users to write reviews. Mobile apps for EV charging stations can exchange data with the stations themselves using protocols like OCPP (Open Charge Point Protocol). Three of the most downloaded apps for finding electric vehicle charging stations are PlugShare, ChargeHub, and EVgo. Mobile app technology for EV charging stations can help overcome range anxiety and increase EV adoption.

How To Find The Best App Developers For EV Charging Station Business ?

If you need assistance developing an app for your company, such as one that helps people locate charging stations for electric vehicles. In that case, you may hire the best app developers for your electric vehicle charging station business. But how do you determine which one you choose for your business? You must consider many factors, such as their portfolio, reviews, rates, communication style, and availability. Startups need apps tailored to their specific needs to ensure the most efficient operation possible.

Hyperlocal Cloud, an established IT company, serves clients in many sectors by providing state-of-the-art mobile app development services. Our expert developers know what it takes to create a program that will serve our client's needs and exceed their expectations. Contact us for more information to develop your vision of the perfect business app. We are happy to lend a hand in any way we can before, during, and after a project's launch.