How do ev charging stations make money – EVSE Experiences 02

Jan 9, 2024 | EVSE Experiences


How do ev charging stations make money

Do you believe that a well-managed advanced vehicle charging station can generate over $100,000 in daily revenue for five years?

Distributed group charging public charging station

  • Major highway station   (Location)
  • 2400kW   (Overall output power)
  • 60%   (Charger full load ratio within 24h)
  • €0.59   (Average pricing of fast charging within 24h)
  • 2400(kW)*24(h)*60%*0.59(€)=20390.4(€)

A EV charging station with sufficient traffic and an adequate number of chargers can generate a daily revenue of over 20,000 euros solely from charging fees. Based on your envisioned scale for the station, you can estimate the daily revenue.

How do ev charging stations make money

EV Charging Station Profit Point

The profitability of an Electric Vehicle (EV) Charging Station depends on various factors, and determining the profit point involves considering multiple aspects of the business. Here are some key factors that contribute to the profit point of an EV charging station:

a. The fee of charging the EVs

Providing charging services is the most direct source of revenue for charging stations. Users pay corresponding fees for the charging service when using the charging piles, which can be charged based on time or electricity consumption.

b.Membership fee

Charging stations can establish a membership program to offer registered members lower charging rates or other benefits, which can attract more loyal users and provide a stable income stream. Additionally, these membership fees can be utilized for various projects and investments.

c. Partnerships

Establishing partnerships with power companies, automobile manufacturers, commercial real estate developers, and others can bring financial support, favorable site leasing conditions, and additional resources to increase the profitability opportunities of charging stations.

d. Advertising and promotion

Charging stations can offer advertising space, enabling partners to display advertisements around the charging stations. Additionally, by conducting promotional activities, charging stations can increase their visibility and attract more users, thereby boosting advertising and promotional revenue.

e. Data analysis service

Charging stations can collect data on users’ charging behavior and station usage, and provide this data to partners, vehicle manufacturers, or other interested parties to support market research and data analytics services for additional revenue.

f. Charging equipment sales and maintenance

Charging stations can sell charging equipment and provide maintenance and repair services for their peers, which includes selling charging piles, cables, plugs, and other equipment to enhance industry influence.

g. Accessorial service

Providing additional services such as vehicle cleaning, maintenance, coffee shops, and stores can increase the amount of time users spend at charging stations and encourage them to make more purchases during their charging period.

h. EVs rental service

The rental services are provided at charging stations, allowing users to rent electric vehicles from these stations. This not only enables the full utilization of chargers during non-peak hours but also enhances the acceptance of electric vehicles among nearby residents, thereby increasing revenue sources for charging stations.

Cost of EV Charging Station

There are various costs associated with the construction and operation of EV charging stations. Here are some of the major expenses that may be involved in a car charging station.

a. Land leases and purchases

Acquiring or leasing land for charging stations incurs significant costs. The choice of geographical location directly impacts the utilization rate and profitability of the charging station, with better locations naturally commanding higher prices.

b. Infrastructure construction

The construction of charging stations’ infrastructure includes costs associated with buildings, power supply systems, charging piles, and equipment installation. These costs encompass permit expenses for construction, electrical engineering, civil engineering, as well as material and labor costs.

c. EVSE purchasing

Charging stations require the purchase of charging piles and related equipment. Fast charging piles usually have higher costs compared to regular charging piles, and different brands of Electric Vehicle Supply Equipment (EVSE) come with varying brand premiums, which need to be carefully considered.

d. Electric power cost

One of the main operating costs of a charging station is the electricity cost for charging electric vehicles. The structure of electricity expenses can impact the profitability level of the charging station, as different time periods have varying electricity prices that coincidentally align with peak demand and peak pricing.

e. Human cost

Charging stations require the hiring of staff for daily operations, maintenance, and user support. Human resource costs include salaries, training expenses, and social insurance.

f. Security and monitoring system

In order to ensure the safety of charging stations, it is necessary to invest in security equipment such as surveillance cameras for preventing device theft and fire prevention systems to avoid incidents like vehicles or charging equipment catching fire.

g. Technical support and software systems

Charging stations require investment in technical support, remote monitoring systems, and charging station management software to ensure the efficient operation of the charging equipment and provide user-friendly services.

h. Policy compliance cost

Complying with local and national regulations and compliance requirements may necessitate a certain level of investment, including adherence to safety standards, environmental regulations, and so on.

i. Marketing and operating expenses

To promote the deployment of charging stations in the market, a certain amount of marketing expenses are required. Additionally, some charging stations may need to invest in operational activities and user services to enhance the overall user experience.

i. Insurance expenses

Charging stations need to purchase appropriate insurance to cover potential accidents and losses, such as lightning strikes, fires, high voltage electricity, theft, and other damages caused to people or equipment.

i. Financing cost

If the construction and operation of charging stations require financing, then the cost of financing, including loan interest, must also be taken into consideration.

Summary of how do ev charging stations make money

In summary, the trend of electric vehicle charging stations becoming the future mode of transportation is unstoppable and undeniable. The industry environment is continuously improving, and existing profit models have become relatively mature. If you are also interested in this industry, please feel free to contact us for more information. Let’s achieve a win-win situation together in the future.



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