Many businesses across the country have installed electric vehicle chargers and are adding extra chargers as EVs become more common. Before investing in anything, most businesses want to know they will make a profit beforehand. The closest most businesses can come to assessing their ability to make a profit is to figure out the “ROI.”
ROI is otherwise known as “Return on Investment.” It is the financial metric used to determine the probability of gaining a return on investments. According to Investopedia, “ROI is calculated by subtracting the initial value of the investment from the final value of the investment (which equals the net return), then dividing this new number (the net return) by the cost of the investment, and, finally, multiplying it by 100.”
With popularity rising and prices falling on electric vehicles, installing Electric Vehicle Supply Equipment (EVSE) seems like a no-brainer, but is it profitable? Several factors, from networked reports to federal tax credits, can make a big difference in your business’s return on investment. ROI also doesn’t take into account trends, the length of use, and the lifetime of the equipment that might be used. ROI can never be predicted with absolute certainty; however, several factors can predict success with your EVSE investment.
Factors That Will Influence the ROI for Your EVSE
First, the ROI for any charger cannot be assessed without taking tax credits and rebates into consideration. The federal Alternative Fueling Tax Credit, which expired in 2017, is back on the books and covers up to 30% of costs, up to $30,000. Your return on investment comes even faster when you pay less. This list of rebates by state can show you how to apply to get even more money back, and some cities, like Los Angeles, have their additional discounts. Learn more about the updated tax credit for EV charging stations.
Another factor to take into consideration? Whether your business plans to offer the chargers as an amenity to some or as open to the public. High-end apartments/condos and high-tech companies may provide complimentary charger use to attract the younger, wealthier, tech-savvy residents and employees. While electricity is much less expensive than gasoline, free fuel is still a significant incentive.
Other businesses might choose to provide free charging to employees but charge a fee for visitors, which allows the company to attract great employees with free charging and make a profit on the charger.
Some businesses choose to charge fees for all usage. Blink can help increase your ROI with their exclusive Blink Network. Membership in the network allows hosts to decide who can use the charger, hours of operation, remotely control the charger, and create reports. Does your charger receive little use from 9-5, but there’s a line from 5-8? Why not have two chargers open only from 5-8? That’s the kind of information a business can only get by using the advantages provided by a networked system. Efficient networking is the key to profitability.
Another advantage of joining Blink’s proprietary network? Put your business on the map. Our network features host locations on maps EV drivers use to find charging stations, such as PlugShare and the Blink Charging Map. Help new customers and visitors find you!
With Blink’s flexible business models, you will be sure to find the one that suits your needs. Some include purchasing the EVSE and setting fees, while in other plans, Blink owns and installs the charger for free, still sharing the profits.
We can help you get a more significant return on your investment by determining how much you want to invest and which business model is suitable for you.
More factors also increase the ROI of EVSE, such as improved public relations and marketing, meaningful opportunities, LEED points, and a larger customer base. Such factors are immeasurable but important components when sustainability is high on companies’ agendas.
As a business owner making the decision to switch your fleet to electric may seem like a weighty decision, but in the long run it will save you a lot of money on both fuel and maintenance. Does your business own a fleet? Is it electric, or do you plan to replace it with electric vehicles gradually? In that case, EVSE on-site presents an astronomical savings compared to fueling up elsewhere.
Blink can help you choose the right plan for you to increase your return on investment, no matter which customers, employees, staff, or residents you have and what kind of charging is right for you.