6 Decisions to Make Before Buying Commercial EV Charging Stations

Reading Time: 5 minutes

Electric vehicle (EV) charging is only continuing to grow in demand, with the number of public EV charging stations in the U.S. reaching over 61,000 in February 2024 (Pew Research). BloombergNEF predicts that EVs will reach 45% of global passenger-vehicle sales by 2030, and with an existing discrepancy between EVs and public chargers, increased demand for electric vehicle charging ports is already here. So, with technology and industry developing at such a quick rate, how do you future-proof your investment into commercial EV charging stations? Let’s dive into six things to consider before you buy.

1. Level 1, Level 2, or DC chargers

There are three types of EV charging stations: Level 1, Level 2, and DC fast charging.

Level 1 chargers are typical for homes because they can be plugged into a common 120-volt AC outlet and have the longest charge times; charging a battery from empty to 80% can take 40-50+ hours for a battery electric vehicle (BEV), and 5-6 hours for a plug-in hybrid electric vehicle (PHEV)*.

Level 2 chargers deliver electric power to the EV, which then uses an onboard converter to convert the electricity from AC to DC. These are convenient for homes, as well as public locations such as shopping, dining, and office buildings. Charging a battery from empty to 80% can take 4-10 hours for a BEV and 1-2 hours for a PHEV*.

DC fast chargers complete the power conversion before it ever gets to the car. This enables much faster charge speeds, making DC chargers great options for vehicles that need to repower quickly — say, when on a road trip or operating a fleet vehicle. Charging a battery from empty to 80% can take as little as 20 minutes*, but not all vehicles are compatible, which brings us to our next factor to consider.

*Charging speed times from U.S. Department of Transportation

2. Compatibility

Compatibility varies between car models and charging stations, so it’s important to consider what type of EVs you expect to see most at your business.

Level 1 and 2 chargers work with all EVs in North America, though Tesla vehicles require an adapter. The SAE J1772 and the North American Charging Standard (NACS), a combined AC/DC-compatible plug designed by Tesla, are the two connectors used at these AC stations.

DC charging has three plug options: SAE combo (CCS), CHAdeMO, and NACS. While capable of charging at rapid speeds, one downside of DC fast charging stations is that they are not compatible with PHEVs. For a thorough look at charger types and compatibility, visit ChargeHub’s guide.

3. Costs

Essentially, the cost will increase with the level of charger — but that doesn’t mean that the most expensive option is always the best for your business. Remember that not all vehicle models are compatible with all chargers.

There are multiple factors to consider in the cost: the hardware itself, infrastructure, maintenance, and electricity costs.

Hardware

Broadsign gives the following breakdown for hardware costs:

  • Level 1 chargers are the slowest and the cheapest option, ranging from $300 to $1,500
  • Level 2 chargers are more powerful and, with variations on model and brand, can range anywhere from $400 to $6,500
  • DC charging stations have the fastest charging speeds, costing from $10,000 to $40,000 for the hardware

Infrastructure

Chargers need the right infrastructure to carry the proper voltage and power output, which your property may not be equipped with. Potential infrastructure costs include a feeder and cable pole, power protection system, wiring, installation labor, and more. According to Broadsign, this can range from up to $1,500 for Level 2 chargers and up to $40,000 for DC chargers.

Maintenance

As with most things in life, EV chargers need occasional maintenance to keep them running in top condition. Depending on who you choose as a provider (more on that later), this cost could be baked in with the convenience of a partner service.

Electricity

This writes itself, but electric vehicle chargers need electricity to run, which has its own costs. According to OBE Power, this typically ranges from $0.09/kWh to $0.21/kWh.

4. EV incentives

Good news for businesses interested in EV charging: the U.S. government has begun incentivizing properties to help build EV infrastructure! According to the IRS, the Alternative Fuel Vehicle Refueling Property Credit is available to businesses and individuals that place qualified refueling property, such as EV charging stations, into service during the tax year. If all qualifications are met, businesses could be eligible for a credit of up to $100,000 for each qualified item of property.

5. Number of chargers

When planning for EV charging stations, give some thought to how many you should install at your business. A few factors to consider are how many of your employees/clientele are driving EVs, specific days or times your business sees increased activity, and which type(s) of charger you want to offer (charge times will factor into port availability).

Beyond the current number of EVs at your business now, it’s wise to future-proof your investment. According to CBRE, there was “an average of 12 drivers per active port in 2023 compared with an average of eight pre-pandemic (2018-2019).” If you’re installing infrastructure to support commercial EV charging stations, you may want to add more chargers as demand grows; ensure that any work you do now will accommodate future increased electrical capacity and enough space for additional chargers. This forward-thinking approach can be illustrated by three types of building codes for EV readiness: EV-Capable, EV-Ready, and EV-Installed. Putting this infrastructure in place at the beginning can reduce costs later when you’re ready to place additional business EV chargers.

6. EV service provider

There are many options for service providers to power your EV charging system, and this is an important decision that could provide a beneficial partnership over time. Choose a provider with a good reputation and experience, high uptime, and offerings that match the services you need. The base requirement for any provider is that it meets federal and state regulations. Beyond that, potential benefits could include full-service maintenance/repair, user apps, usage reporting, in-house software platforms, and more. Providers like ChargePoint have extensive capabilities and services to make your business EV charger experience seamless from setup to scaling.

Key takeaways

  • EV charging infrastructure is growing at a rapid pace
  • Factors to consider before you invest in commercial EV charging stations:
    • Type of charger
    • Vehicle compatibility
    • Costs
    • Government incentives
    • Number of charging stations
    • Provider

Navigate the future of EV

The decision to invest in commercial EV charging stations can be complex; let industry experts guide you through the process. Get in touch with the dedicated City Electric Supply (CES) EV Solutions team at EVSolutions@cityelectricsupply.com. From assessing your needs to recommending the best solutions for your business, EV Solutions can help you find your entry point into the world of electric vehicle charging.

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