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What you will learn:
• EVs will likely account for 32 percent of the cars on the road by 2030
• Smart chargers connect to the internet and advertises its location
• Three different levels of charging options offer different types of charging equipment available
Is your shop not currently servicing EVs? That's ok, install a charging station anyway, you'll be thankful you did!
There are many reasons to install an electric vehicle (EV) charging station at your shop even if you don’t currently do a lot of work on EVs. The market share of electric vehicles is rapidly increasing with EVs projected to account for 10 percent of all new vehicle sales in the U.S. over the next three years and increasing to 32 percent in 2030. Some of your customers either own or are thinking of owning an EV and investing in an EV charging station for your shop is a great way to attract new business and retain the existing customers that transition to an electric vehicle. Having a charging station on your premises advertises that your business is ready for the future and services all types of vehicles.
There are several ways a charging station can fit into your business. A charger can be installed inside your shop (to charge an EV that is in for service) or located on the outside of a building (to provide charging after the vehicle is serviced). An important factor in deciding what type of charger to use is how your customers will know that you even have one. EV chargers fall into two categories, “dumb” and “smart.” Dumb chargers don’t have communication (network) capabilities and only your employees and a few customers will know that your shop has a charging station. A “smart” charger is different because it’s connected to the Internet and advertises its location.
Anyone with a phone can download an app that will locate charging stations. For example, Sygic GPS Navigation integrates with charging station providers and shows an EV driver details about charging stations, and availability, and allows payments. Another is PlugShare, a free EV driver's app for iOS and Android, allowing users to find charging stations and leave reviews. Also, many EVs have onboard GPS that identifies charging station locations.
A Blink IQ 200 networked charging station mounted on a pedestal is an effective way to attract customers to your business. With the charging station connected to the Internet, your shop will appear on numerous EV charging apps providing you an opportunity to attract new customers.
Provided you have the physical space to park an EV for charging, a network-connected charging station could make your shop a destination for EV owners looking for electrons to fill their car's batteries. This provides an opportunity to introduce your shop to a potential customer via signage, flyers/business cards, or in person. Because the cost per charging session is only a few dollars, offering “free” charging as an amenity will draw in EV customers to your shop, or you can set the price per kilowatt (kW) and offer a discount if the customer comes into the shop to pay.
Charging—Levels 1, 2, or 3?
There are three levels of EV chargers. Level 1 (L1) uses a standard household 120V outlet that draws 12 to 20 amps and outputs 1.3 to 2.4 kWs. L1 chargers are the least expensive and are slow to charge EV batteries, recovering about 20 miles of range in four hours (basically an overnight charger). L1 applications are suited for home use, long-term parking at airports or hotels, and parking structures. L2 charging stations use a 240V connection, can have up to an 80-amp power rating, and deliver up to a 19.2 kW charge rate—about 60 miles of range per hour of charging—ideal for topping off an EV battery in a repair shop. L2 chargers require a dedicated electrical circuit of up to 100 amps. Level 3, often referred to as DC (direct current) fast charging, bypasses the vehicle’s on-board
AC to DC converter (used for L1 or L2 charging) and connects directly to the battery. L3 requires a 480V connection and can fill an EV battery to 80 percent capacity from 15 to 45 minutes, at a charge rate from 150 to 350 kW. L3 is expensive to install and operate and could cost $15,000 to $50,000. L3 chargers are typically provided by state governments along interstate highways, and because there are no standard specifications for output, not all EVs are compatible with them.
Installation costs
Like other improvements to a business, charging stations are not inexpensive and are more complex to install than just purchasing the hardware. Four components make up an EV charging station: the charger, or electric vehicle supply equipment (EVSE), design, engineering, and permitting/construction.
EVSE is the physical device that transfers electricity to charge an EV. Many manufacturers produce this equipment, such as Autel, Blink, Chargepoint, Enel X, and others. These manufacturers provide several models of chargers, some that are basic and others with more sophistication. Depending on the manufacturer, hardware costs range from $1,200 to $3,500 per port. "Per Port" is used because some EVSEs have two charging ports that accommodate two vehicles at the same time.
Installing EVSE in a shop’s parking lot will require construction drawings and a permit. The construction drawings include the design and layout of the charging stations. If the EVSE is open to the public, an architect would design the site to comply with the Americans with Disabilities Act (ADA). These types of upgrades will directly affect the cost of construction. An electrical engineer is responsible for the load calculations and drawings. Larger projects may require a significant amount of time from a design team due to complexity compared to smaller projects. As an estimate, the cost will range from $1,500 to $5,000 per project.
If you are installing EVSE inside your shop, or on the outside of a building costs are lower and obtaining a permit and hiring an electrician are usually all that is required. Permit costs are minor relative to the overall project and are in the range of $150 to $500. Some jurisdictions have streamlined processes and reduced fees for charging station installations to encourage site owners to install them.
Construction costs encompass everything needed to install the EVSE. This can include trenching, conduit, wire, circuit breakers, panel upgrades, concrete/asphalt cutting, signage, striping, bollards, and labor. Costs vary widely because some installations are simple with easy access to electrical sources while other projects could require transformer upgrades and more extensive electrical work. Expect to pay between $1,200 to $3,500 per charger depending on these factors. The bottom line is that installing charging stations in a shop can range from $1,500 to over $6,000 per port. Governments and utilities may offer an array of tax credits, rebates, grants, and other incentives to ease the pain of installation costs.
Operating costs
There are three costs associated with EV charging stations: networking, electricity, and maintenance. Open-to-the-public charging stations require networking to provide capabilities such as GPS location, payment processing, session limits, and more. Software costs vary depending on the features of the network and terms of service. In general, expect around $100 to $300 per port per year.
In 2022 the average cost for a kilowatt-hour (kWh) in the U.S. was $0.14. Here is a typical example of the cost to charge an EV. If 40 kWh is required to recharge an EV, multiply 40 x kWh ($0.14) for a cost of $5.60. The cost will probably be less because it’s unlikely that an EV will come into your shop with “zero” charge in its battery.
Low electricity costs can warrant a “free” charge (as loss leader advertising) to get customers into your shop. Initially, the maintenance cost will be zero because new equipment is covered under a warranty. Eventually, the connection plug/cord will require replacement. You can purchase a maintenance plan from the equipment vendor or pay-as-you-go. Either way, expect maintenance costs to be around $200 annually.
Blink offers several innovative ways to own and operate EVSE:
- Hybrid owned: Blink covers the cost of the EV charging equipment and administration. The host is responsible for making the site EV charger ready and shares revenue with Blink.
- Blink as a service: Features low, upfront costs where Blink covers installation, equipment, and maintenance for a monthly fee. The host is responsible for making the site EV charger ready and keeps 100 percent of the revenue.
- Blink owned: Blink owns the EVSE and covers all costs sharing a portion of the revenue with the host.
Even if you don't currently do much work on EVs, a charging station is a great way to attract new customers or retain customers that purchase an EV. As an example, in 1986 Pat Cadam opened Pat’s Garage (www.patsgarage.com) in San Francisco which services Honda, Acura, Toyota, and Subaru and specializes in repairing hybrid vehicles. As an early adopter of EV technology in the independent auto repair business, Pat installed an EV charging station in 2011 and said this about his experience.
“My charging station is used nearly around the clock. Having one has several benefits. First, it makes you stand out in the crowd of shops in your area. It creates a very positive image in the community because it shows that you're interested in technology and new things. Second, it gives me a chance to get to know the drivers of the cars, and their needs and to introduce ourselves and what we do. We have people charging for as little as 30 minutes up to half a day. Many people come into our offices and sit and chat with us. That's a great opportunity to build a relationship and find a new customer.”
