What Are the Three Common EV Charging Business Models?
- Pay-per-Use Charging
This is the most straightforward and commonly seen mode within public charging networks. It works in the same way as a traditional petrol station. EV users pay for the energy used to charge their vehicles. Increasingly easy payment modes, such as apps, are being used to simplify this transaction. Further, the EVbee app is a great example of how seamless this charging management can be.
- Subscription Services
Some electric vehicle charging suppliers now provide customers access to monthly or annual subscription services, usually complemented by cheaper per kWh rates versus pay-per-use customers.
- Utilise Charging an amenity
EV charging can be used to draw in customers for businesses that have already been established. Offering EV charging or, even more persuasively, for free or at discounted rates is a great way to attract attention from potential customers. Typically, this is seen with hotels, restaurants, and shopping centers, but this extends to any business. Offering charging in this way is designed to attract potential customers by incentivizing them to choose the business for their custom first and then extend their stay longer to charge their EV fully, thus potentially opening up the possibility of further sales. Consider this: there are two supermarkets, but one has an EV charger you can conveniently charge your car with while you shop, and the other doesn't. Which would make the most sense as an EV user?
What to consider when starting an EV charging station business
The move to EV charging is a gradual transition, and there is much to consider when adjusting or starting your business with this dynamic industry in mind. Here are a few extra tips we think are useful that you can keep in mind if you're considering venturing into the EV charging business:
- EV chargers can be used as a marketing tool. Along with increasing footfall by choosing to offer EV charging, as sustainability and environmental causes become more pressing issues, businesses can use EV charging as a valuable marketing tool. Installing an EV charger demonstrates tangible action being taken by a company and a proven dedication to environmental causes; this can, in turn, alter a business's image and attract a broader eco-conscious customer base.
- Secure extra funding. Several government-led initiatives can help provide further financial incentives for businesses considering expanding their presence in the EV industry. These initiatives are in scope but can help lessen the costs incurred by operating an EV charging site throughout each stage, from installation to operation. An example of the financial incentives you can expect is the workplace charging grant, which offers UK businesses, charities, or public authorities up to £14,000 for purchasing and installing charging points for the workplace.
- EV charging is being made easy. Advancements in technology have simplified the installation process, meaning it is simpler than ever to set up and manage EV charging apparatus. Our EVbee products, seamlessly linked to our EVbee App, are a great example of how carefree managing charging systems can be.
- Consider local demand and average pricing in your area. The move to EVs is not happening equally across countries; depending on local demand, rates can vary. Understanding your target market from the beginning of your business venture is important to set competitive, realistic charging rates that work for you.
The electric car industry is perhaps one of the most lucrative in our time; it is fast-paced and hugely significant in creating a sustainable future. Here at EVbee, we are committed to providing charging solutions that make the operation of EV charging stations carefree so businesses can make the transition to EVs work for them. Tapping into the future profitability of EV charging is a great way to invest in a greener future.
