EV usage by Americans has soared high with nearly 2 million electric vehicles on the road at the moment. People are adopting electric cars because they perceive them as better transportation options with a longer range, more affordable price, and longer battery life.
There is a huge gap to fill in the USA’s EV charging network as purchases of electric vehicles keep increasing every year. With more than 150,000 chargers or 41,000 electric vehicle charging stations, there is no alternative.
Because electric cars are experiencing record-breaking growth, it is also essential to increase the number of high-level chargers, such as Level 2 and Level 3, so that public charging can be as fast as possible.
A number of charging stations are already planned by state governments because of the poor state of the EV infrastructure. To meet the charging needs of residents and businesses, they came up with policies.
Then EV charging companies were given the opportunity to establish franchises for electric vehicle charging stations, which allows them to grow their business and contribute to the growth of electric vehicle infrastructure at the same time.
This brings us to the topic of this blog post, which is the EV Charging Station Franchise Cost. We’ll guide you through the process from defining an EV charging station to determining how much an EV charging station franchise will cost.
What is an EV Charging Station?
It is important to understand what an EV charging station is before learning more about EV charging franchises.
Let me provide you with a legitimate definition.
“Electric vehicle charging station or simply EV charging station is the direct source of power supply for electric cars and plug-in hybrid vehicles.”
Many experts also refer to EV charging stations as Electric Vehicle Supply Equipment (EVSE) for this reason. The charging stations for electric vehicles are located in different public places near highway entries/exits, such as near highway entrances/exits, just as gasoline stations are.
An electric vehicle is a smarter version of an automobile that requires no fuel to operate but offers the same driving efficiency as a traditional automobile. And charging stations are just as smart. Advanced features include automatic metering, real-time analysis, and high-speed network connectivity at most charging stations.
Many EV charging stations can be found in municipal parking lots, large housing developments, malls, and supermarkets today.
Governments are incentivizing retail outlets and small businesses to install charging stations to expand the EV charging infrastructure needs. In turn, this encourages EV charging infrastructure companies to open franchises for EV charging stations.
In order to earn extra income on a daily basis, they provided opportunities for entrepreneurs, including retailers, fast food establishments, takeaways, offices, and convenience stores, to install charging stations.
What is meant by an EV Charging Station Franchise?
An EV charging station franchise provides entrepreneurs and commercial property owners the opportunity to open their own charging stations.
It can be very challenging to install an electric vehicle charging station yourself, but with a franchise, you receive turnkey assistance and support.
Franchisees of EV charging service companies, of course, can have a charging station installed seamlessly without having to do any research, development, or anything else.
Various Types of EV Charging Stations
EV charging station franchise opportunities are available today if you understand the types of charging stations required. Your EV charging station business cost will directly depend on the type of charger you are installing.
1. Level 1 Charger
EV chargers connected to standard wall outlets, i.e., the ones you use at home. Level 1 chargers charge EVs at the slowest rate. The charger is suitable for charging cars that have low mileage or for recharging overnight in residences.
This type of charging can provide an electric car with a range of up to five miles after one hour of charging. Installing only Level 1 charging stations lets you provide this facility to plug-in hybrids with smaller batteries.
2. Level 2 Charger
Chargers of this type use 240 volts of power, which is ideal for fast charging. They require an AC (alternating-current) plug and can be used in both public and home charging locations. Charging stations with Level 2 chargers are typically found in residential complexes, multifamily buildings, and office buildings.
This type of charger is ideal for retail outlets and commercial real estate companies seeking franchise opportunities for electric cars. If your station has two or three chargers, you can charge a considerable number of cars per day and earn a considerable amount of money. Offering fast and quick charging means you can get considerable returns on your investment.
Typically, a Level 2 charger can charge a car to a full charge overnight, approximately in 8-10 years. A charge of one hour can provide a range of 25 miles. The majority of public places where electric vehicles can be charged have Level 2 chargers, such as shopping malls, restaurants, rest areas, convenience stores, and rest areas with parking.
3. DC Fast Charger
With this type of charger, you can charge an EV and get 250 miles of range within an hour! These chargers are also known as supercharging stations for this reason. These superfast chargers charge a vehicle 80% in just 30 minutes. That’s huge.
In particular, this type of charger is used by establishments or organizations that wish to provide their customers with premium charging services.
A major drawback of this type of charger is that it is not compatible with all kinds of electric vehicles. This is why we don’t recommend opening a franchise for an EV charging station with this type of charger. You may end up losing money because you cannot support as many EVs as you would like.
Facts Making EV Charging Station Franchise A Great Investment Opportunity
Electric cars are addressing many issues, including reducing air pollution and supporting sustainable transportation. In the USA and other parts of the world, conscious consumers prefer electric vehicles because they produce zero harmful greenhouse gas emissions.
From an environmental sustainability point of view, electric vehicle charging stations can contribute to the sustainability of the planet. But, from a business perspective, EV charging stations can have more advantages than the planet!
1. Lower investment
Starting an EV charging franchise requires minimal upfront costs or startup capital. This is the biggest advantage you can get by investing in an EV charging franchise.
There are many small to large electric vehicle charging service companies that are adopting the franchise model. In order to become a franchisee of such a company, business owners need to pay a relatively low fee. The company will provide them with solutions for establishing and managing the station once they buy the franchise.
2. Higher profits
A primary source of profit margin comes from the fees you charge EV drivers for using your electric car charging stations. Access to electric car charging stations can be a franchise opportunity for retail owners or businesses. Billing can be done hourly, based on energy consumption, or combining the two.
As an added benefit, it will boost your product/service sales. When your shop has an electric vehicle charging station, more customers are likely to visit your store, including those who haven’t been your customers before.
Consequently, your business gets more footfall, leading to higher sales and profits. If you have enough space at your e-charging station, you can also place banners or signage posts for local brands, generating fees from them in return.
3. Easy cost recovery
When EV charging stations are franchised, business owners can easily recover the franchise costs by charging EV drivers for charging their cars. However, they need to structure the fees wisely. Depending on how much electricity is used, how long it takes to charge, or even how long they charge, they can charge per kilowatt hour, how long it takes to charge, etc.
It is simple to recover installation costs and any unexpected costs for your electric car charging franchise, regardless of the pricing model you choose. As a result of the increased demand for electric vehicle charging services and the fewer charging stations, the EV charging franchise business is able to achieve excellent profitability and early cost recovery.
4. Promote environmental stewardship
With electric cars reducing carbon dioxide emissions substantially, when you own and operate an electric vehicle charging station franchise, you are also indirectly contributing to environmental protection and sustainability.
In installing EV charging stations at your business outlet or retail store, you demonstrate your commitment to a greener world. Eventually, this will attract environmental enthusiasts and the conscious population of the state to your company.
5. Competitive edge
Business owners or retail outlets can gain a competitive edge by investing in electric charging stations. Electric cars are the best choice for private transportation and are quite a trend right now. Having a supercharger station at your place of business will attract people and get everyone’s attention since there is a growing demand for electric vehicles.
There are many ways an EV franchise franchise can give you competitive advantages, from getting more traffic to earning more income.
Frequently Asked Questions
1. How many charging stations are there in the USA in 2023?
In July 2023, the US will have 161,562 charging stations for electric vehicles. California will have the most charging stations, while Alaska will have the fewest. In order to meet the nation’s 2030 charging station needs, approximately 28 million charging stations will need to be constructed.
2. Who owns the most charging stations?
California is the state that has the most public EV charging stations, consisting of roughly 14,000 chargers, with more being added on a constant basis.
3. Is it profitable to own an electric charging station?
EV charging stations are expensive to open, but they offer a lot of potential for profit if they are planned and managed well. If you plan and manage an EV charging station successfully, you can help EV drivers in your area while making a profit yourself as well.
An EV franchise, however, is the best choice if you want to maximize profits from an electric vehicle charging venture. An electric vehicle franchise cuts the investment cost and also brings you more customers.
4. How much does it cost to open an EV charging station?
It takes a significant amount of funding to open a charging station for electric vehicles.
There is an approximate range of $45,000 to $350,000. There are several costs associated with this project, including equipment expense, permit and license fees, a lease payment to the property owner, insurance costs, preparation and setup fees, and security costs.
It depends on the type and number of chargers, the location, the readiness of the site, and the availability of infrastructure for EV charging to determine each of these sub-costs.
5. How profitable are Superchargers?
The survey revealed that EV drivers are willing to pay up to $3 per hour to charge their cars during transit at a convenient location. According to another study, 12% of electric car users would be willing to pay more than $4 per hour to keep their cars running faster. Based on these estimates, charging stations are very profitable for electric cars.
Having a supercharger installed is the easiest way to increase revenue, as you can bill customers according to the amount of energy consumed. Superchargers are immensely profitable, especially in regions with high electric vehicle charging usage.
6. Who owns supercharging stations?
The majority of EV supercharging stations are currently owned and operated by government agencies, public facilities, municipal parking, and commercial establishments like shopping centers, restaurants, diners, BBQ locations, hotels, and shopping centers.
It is therefore not surprising that EV charging supply companies are providing franchise opportunities to help expand EV charging infrastructure. Since then, many small to large businesses have taken advantage of the opportunity to own supercharging stations.
