In today's world of tech and sustainability, electric vehicles (EVs) have taken the world by storm. Undoubtedly, this marks a great time for businesses to think about the installation of charging stations for their customers or employees who own EVs.
But, you may ask, what's in it for businesses other than a potential attraction of new customers and employees? Well, as with every major business decision, it all comes down to Return on Investment (ROI). Let's explore the value that EV charging stations can bring to your business ROI-wise.
Benefits for businesses that install charging stations
- Attracting new customers
- Boosting reputation as a modern and socially responsible company
- Retaining current employees who own EVs by providing charging convenience
- Helping employees save time by multi-tasking their EV charging during work hours
- Direct cost savings on fuel expenses for businesses that own EVs
- Contribution towards improving air quality
Now, let's take a deeper dive into the concrete statistics on ROI for businesses that install charging stations.
The financial aspect of Charging stations
- On average, startups and SMEs who install EV charging stations see an ROI of 100% or above within two to four years, according to research from the World Business Council for Sustainable Development (WBCSD).
- In the US, EV drivers were found to spend 23% more per year at businesses with charging stations than they otherwise would if they didn’t exist, according to data from Fleetcarma, a Canadian EV and telematics company.
- Electricity costs around $0.11 per kilowatt-hour, according to the US Department of Energy, meaning that to fill up a Tesla Model S (85 kWh battery) in California only costs $9.35, compared with over $70 for a full tank of gas.
An additional fact is that in most cases, EV charging stations are free, and by reducing or eliminating the fuel cost, businesses that own EVs can see a significant amount of savings in operational expenses.
How businesses can improve their ROI on charging stations
- As there has been a significant shift in buying behaviours, offering a fast charging solution (50kW or higher) provides a good option for attracting EV drivers.
- Providing a loyalty programme is another way to retain customers and increase revenue. Offering perks (e.g. free car wash, priority parking) for drivers who recharge regularly can keep them coming back for more.
- Choose a charging station provider that offers customisable branding options. By branding the stations with company logos or messages, businesses can increase their brand awareness and recognition.
All in all, if you own a business and are contemplating the installation of EV charging stations, the ROI is certainly worth consideration. Not only does it help satisfy the growing population of eco-minded EV drivers, but it’s also a sensible investment that could provide your business with long-term savings and revenue opportunities.