How Can EV Charging and Gas Stations Co-Exist?

Posted 05/03/2024

It’s still early to gauge the full impact of the rise of electric vehicles (EVs) on the approximately 160,000 gas stations in the United States, but exploring the options available to gas station owners in light of EVs is worthwhile.

As the number of EVs on the road increases, gasoline and diesel fuel demand for internal combustion vehicles is expected to decrease, with vehicle sales projected to reach 2.46 million by 2028. However, this shift does not signify the demise of fuel stations or convenience stores. A recent study by Auto Pacific indicates, “future EV consumers would like a public charging experience that more closely mirrors traditional gasoline fueling stations.” Here’s what gas station and convenience store owners should be aware of regarding the future of gas stations in an EV-dominated landscape.

Shift in fueling dynamic

The primary distinction between liquid fueling and electric fueling lies in the fact that liquid fueling requires drivers to visit a specific location for fuel, whereas electric fueling can be accomplished using a wall outlet or a home charging station installed in a garage.

However, many EV drivers lack access to residential charging stations, necessitating reliance on public options. This presents an opportunity for gas stations to install charging infrastructure to accommodate EVs.

Gas stations have several options available for Level 2 charging stations, such as the Blink Series 8 Level 2 charging station. These enable gas station and convenience store owners to install charging stations at a relatively low cost and subsequently charge fees for their usage. Depending on the vehicle and amperage, Level 2 chargers can provide up to 65 miles of range per hour, making them ideal for locations with nearby amenities or retailers, thereby increasing dwell time. Level 2 chargers are compatible with all EV types, including plug-in hybrids (PHEV) and battery electric vehicles. (BEV)

To meet higher power demands, gas stations can choose to install direct current fast chargers like the Blink 60 kW-360 kW DC fast charging stations and charge a premium for their use. These charging stations bypass an EVs onboard charger and deliver DC electricity directly into the vehicle’s battery, enabling rapid charging in under an hour. It’s important to note that DC fast charging is not compatible with PHEVs.

DC fast charging stations are particularly crucial along highway corridors, as travelers seek the ability to fully charge their vehicles’ batteries within the span of a meal or a 30-minute walk, aiming for a range of 300 miles.

Blink's 60kW-360kW DCFC is ideal for gas stations and convenience stores located near a highway.

The rural advantage

Rural gas stations, particularly large truck stops and those in remote areas, have certain advantages over their urban and suburban counterparts. Gas stations in rural regions typically have more space available compared to urban locations, allowing them to install EV chargers without significantly disrupting parking arrangements or liquid fuel deliveries. Large truck stops, in particular, can easily set up multiple EV charging stations without encountering significant disruptions. Gas stations situated along major highways, especially in remote areas, enjoy the advantage of attracting long-distance EV drivers. These drivers, unable to charge their vehicles at home while on the road, seek quick charging options to resume their journey without lengthy delays. Similar to stopping for gasoline, they prefer a brief charging session and a short break before continuing their travels.

In addition to typically having more space, rural gas stations also tend to have more funding options available to them. This is because a significant portion of the U.S. federal government EVSE funding is directed towards rural areas. The aim is to establish a comprehensive nationwide EV charging network, ensuring that EV drivers can travel to any destination within the U.S. without the fear of getting stranded with a dead battery.

Funding options

The current U.S. federal administration has unveiled various deferral funding opportunities to support the creation of a nationwide EV charging network, including $623 million in grants announced this past January.

Charging and Fueling Infrastructure (CFI) Discretionary Grant Program

This January grant funding, part of the Charging and Fueling Infrastructure Discretionary Grant Program, aims to strategically deploy publicly accessible electric vehicle charging and alternative fueling infrastructure in both urban and rural areas, catering to where people live and work. Additionally, it targets designated alternative fuel corridors to ensure comprehensive coverage across the nation.

The CFI program can be split into two different kinds of available grants:

Community Charging and Fueling Grants (Community Program)
Alternative Fuel Corridor Grants (Corridor Program).

The Community Program focuses specifically on installing electric vehicle charging and alternative fuel stations at locations such as public roads, schools, parks, and publicly accessible parking facilities. Grants under this program prioritize rural areas, as well as low and moderate-income neighborhoods with limited private parking or a high concentration of multi-unit dwellings.

Conversely, the Corridor Program aims to deploy electric vehicle charging stations and infrastructure for hydrogen, propane, and natural gas along designated alternative fuel corridors.

In both programs, funding is transferred from the federal government to state governments and other eligible entities, which then issue calls for projects.

While these programs are currently closed, they will reopen when calls for new projects are announced.

National Electric Vehicle Infrastructure (NEVI) Formula Program

The NEVI Formula Program is designed specifically to install banks of at least four DC fast chargers along highways throughout the U.S. NEVI funding is administered by each state government, with eligible projects able to receive funding of up to 80%.

NEVI funding can be used for:

Acquiring, installing, and connecting EV charging stations to a network to facilitate data collection, access, and reliability;
Properly operating and maintaining EV charging stations; and,
Long-term EV charging station data sharing.

Individual states manage NEVI funding, and potential projects can apply for funding through their respective state governments.

Alternative Fuel Vehicle Refueling Property Credit

Administered by the Internal Revenue Service, the Alternative Fuel Vehicle Refueling Property Credit provides businesses with a base tax credit of 6% of the cost of installing EVSE, up to $100,000. Eligible EVSE installations must be located in census tracts where the poverty rate is at least 20%, or the median family income is less than 80% of the state median family income level. Installations that meet prevailing wage and apprenticeship requirements can qualify for additional credit.

State funding

Additionally, various state utility providers offer finding opportunities, which you can explore using the Blink Commercial Incentives Finder. Blink Charging also assists in securing eligible funding for projects on federal, state, and municipal levels.

Conclusion

As the world moves towards an all-EV future, gas stations and convenience stores are understandably concerned about a fuel-free future. The good news is that forward-thinking retailers can adapt to support the new long-distance EV traveler. Contact Blink Charging today to embark on your fuel station electrification journey.