Electric Vehicles (EVs) are expected to experience significant growth in the next 10 years ushering in the EV revolution. A recent report by BloombergNEF projected the global EV market to grow to over 540 million vehicles by 2040—that’s an eye popping average annual growth rate of 29%. According to a report by the International Energy Agency (IEA), the number of EVs on the road in the US is projected to reach 20 million by 2030, representing approximately 7% of all passenger vehicles.
I think the IEA’s projection is closer to the floor and that EV sales will far exceed those projections. Policy has joined with product innovation to supercharge this growth. Major U.S. states, including New York and California, have set ambitious targets for EV adoption, aiming for 100% zero-emission vehicle sales by 2035. The Biden administration, and the recently passed Inflation Reduction Act, will spur investment in charging infrastructure and incentivize consumers to purchase EVs.
However, to support the widespread adoption of EVs, an extensive and reliable EV charging network is required. While governments and utilities can play a role in building this infrastructure, commercial businesses will play a critical role in expanding and sustaining the EV charging network.
The requirements for refueling an EV are very different from gasoline cars. It takes time to refuel, or recharge, an electric vehicle. That simple fact is what makes commercial businesses so important for expanding the reach of the EV charging network. Customers and employees will value the ability to charge while they shop, work, or run errands. The existing parking infrastructure at shopping malls, restaurants, and office buildings is an asset ready to be unlocked, particularly in less urban areas where opportunities to recharge may be farther apart.
That is why EV growth represents an electrification opportunity for commercial businesses. By utilizing their existing onsite parking infrastructure to add EV charging, businesses can reap multiple rewards: provide an employee and customer perk while adding a revenue stream and accessing state and federal incentives.
Here are the different benefits and incentives available to commercial businesses.
Tax Credits
The U.S. federal government offers a tax credit of up to 30% of the cost of installing EV charging stations for businesses. This credit is available through the end of 2023.
Grants
Several states and local governments offer rebates or grants to businesses to help cover the costs of installing EV charging stations. These grants may cover up to 80% of the cost of the charging station. New York State’s Charge Ready NY Program provides rebates to offset the cost of installing Level 2 charging stations for businesses, non-profit organizations, and municipalities. The rebate amount is up to $4,000 per charging port, with a maximum rebate amount of $5,000 per site.
Rebates
Some electric utility companies offer rebates to businesses that install EV charging stations. These rebates can cover a portion of the installation costs, making it more affordable for businesses.
Public Charging Station Property Tax Exemption
Businesses that install publicly accessible EV charging stations in New York State may be eligible for a property tax exemption for the charging station equipment.
Increased Revenue
Installing EV charging stations can attract new customers and increase revenue for businesses, especially those in high-traffic areas or near highways. In addition, businesses can collect charging fees that users will happily pay.
Public Relations
Businesses that install EV charging stations can benefit from positive publicity by showing their commitment to sustainability and reducing emissions.
Fees
Depending on the compensation model a business chooses, they can generate additional income by setting charging fees and their customers will be more than happy to pay them. As the charging station owner, you can set your own charging fees and adjust them at any time. This may include a fixed session start or connection fee and a variable rate for the energy used.
The EV revolution is inevitable–and it’s a momentous change. That change comes at a time when it is more important than ever to make your business stand out to attract customers and employees. For smart businesses that represents an opportunity. For early adopters, becoming ‘the place’ where customers and employees charge their vehicles is the most important value. The new tax incentives, grants, and rebates are just the cherry on top. As with all things in business, being ahead of the curve is critical. EV charging represents a fantastic opportunity, but one that may become crowded soon. Many of the incentives available are time or need limited—as with most things in business, it pays to be first.
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