Decades ago, seeing highways full of electric vehicles (EVs) seemed like a pipe dream. But with climate change concerns, stricter emissions regulations and growing public interest in sustainable practices are quickly making it a reality.
While recent studies show that most EV owners charge at home, there’s a growing demand for public charging stations to increase range and provide more travel flexibility. That demand presents more EV charging business opportunities for entrepreneurs.
Is EV Charging a Good Investment?
According to the International Energy Agency, there were some 2.7 million public charging points globally at the end of 2022. While that number’s grown, it’s still insufficient to meet increasing demand. Recent estimates show only one public charger is available for every 10 EVs on the road. That ratio is heavily imbalanced by countries with major investments in public charging infrastructure.
In many countries, there’s an even greater disparity between the number of active EVs and available charging points. Many experts say that the lack of public chargers is among the biggest barriers to EV adoption, particularly in countries like the United States.
Sales projections show that EVs could account for over two-thirds of all vehicle sales by 2030, pushing the global EV market to over 693 billion USD. Plug-in vehicle registrations are rising in Europe, and all-electric and hybrid-electric vehicles are continually breaking sales records yearly in the United States. Even oil-dependent countries in the Middle East are showing strides in EV adoption.
Those facts highlight great EV charging business opportunities. Projections show the value of the global EV charging market alone to reach more than 128 billion USD by 2023, matching the growth of EV adoption.
EV charging business will continue to be profitable in the future. There’s no better time than now to invest. Countries around the world are investing heavily in public charging infrastructures. From Europe to South America, the trend of driving EVs is strongly upwards.
Take America as an example. The federal government is pouring millions into expanding the public EV charging infrastructure, and it allows companies that install a business EV charger to claim tax credits.
Learning how to start a mobile EV charging business can be lucrative, and getting your foot into the door now can help lead to greater success tomorrow.
How to Start a Mobile EV Charging Business
Whether you want to start a wallbox business or invest in mobile charging stations, there are plenty of ways to hit the ground running. But success hinges on many factors, and it’s important to do your due diligence when planning your business. Here’s a quick guide on how to start a mobile EV charging business.
1.Conduct Market Research
The first step is to analyse the market. Market research is critical to the successful launch of any business, but it’s paramount for business EV charging. Despite worldwide growth, EV adoption is stronger in some areas than in others.
Research EV registration data, explore charging trends, identify opportunity zones and more. The key to successful business EV charging is understanding the market’s needs.
2.Choose a Location
Location is everything, and there’s no greater example of that sentiment than EV charging. A relatively weak charging infrastructure is one of the biggest challenges of EV adoption. While some parts of the world provide drivers with easy access to charging stations, drivers in other areas aren’t so lucky.
Poor infrastructure also limits travel range. One way to successfully enter the EV charging market is by choosing a strategic location for your wallbox business. Once again, do your due diligence and select high-impact locations that serve the needs of EV drivers.
3.Understand Regulatory Considerations
Compliance with all federal and local regulations is another hurdle to overcome. EV charging is still a relatively new venture, and regulatory considerations vary based on the location of your business. Other factors, such as zoning laws, non-utility classification and more come into play.
4. Develop a Business Plan
After doing some market researches and getting clear about all regulatory details that apply to your business, you can make your plan. What makes your EV charging business different? How are you going to offer charging service to your customers? What’s your plan to make a profit? Those are all the details you must consider.
Develop a pricing model, determine how you’ll provide customer service, build a maintenance schedule for your chargers and more.
5. Secure Funding
Every new business needs funding, and EV charging is no different. Fortunately, governments worldwide are investing in charging infrastructures, providing ample ways to secure financing for a new business like this. More on funding soon.
6. Implement the Right Technology
Technology plays a substantial role in EV adoption and charging. Tech-savvy consumers are reportedly six times more likely to drive an EV, and modern vehicles have advanced features. You must implement the right technology to compete in the tech-focused charging landscape. That includes having a mobile app for real-time availability, payment processing, etc.
7. Market Your Business
EV charging maps are plentiful, and many governments maintain resources to help drivers find public charging points. But public outreach is still important. Let drivers know that a new station is available. Doing so can increase EV adoption in the area, leading to substantial growth moving forward.
Is EV Charging Profitable?
Earning potential for your business EV charging venture depends on many factors. These include:
- Location
- Competition
- Charging technology
- Pricing models
- Utility costs
- Utilisation
There are also varying startup costs. Starting a wallbox business could be affordable if you have an existing property and code-compliant electrical infrastructure. But upfront costs could go into the tens of thousands if you don’t.
All that said, starting an EV charging business is typically profitable. What makes this business worth a try is that it doesn’t have to be your primary source of revenue. There are plenty of opportunities to invest in standalone charging stations. But existing businesses can also add EV charging to their list of services, providing another source of reliable revenue.
What is the Profit Margin on EV Charging?
Profit margins vary, and it’s impossible to provide any concrete number. However, the typical profit margin for charging point operators is between 15 and 30 percent.
That’s a great profit margin; Revenue earned can help cover upfront investments in less than a decade.
Financing and Managing Your Mobile EV Charging Business
Before you can reap the reward of EV charging business opportunities, you must finance this venture. While securing funding can typically be overwhelming for new companies, the EV charging market is ripe with opportunity.
Of course, you could apply for business loans. Here’s where market research comes in handy. If you did your due diligence, you can present your findings and earning potential to show lenders that business EV charging ventures are worth pursuing.
You can also explore any federal loan programs. For example, the United States Department of Agriculture (USDA)has a loan program that can provide up to $1 million to businesses in rural communities to finance EV infrastructure.
Another option is to explore government grants. In the United States, countless federal and state-level grants are available to those looking to invest in EV infrastructure. Tax breaks are also available. The European Union also provides grants to individuals and businesses that go electric. The same goes for many South America, Asia and the Middle East countries. Grants and subsidies are plentiful, so do your research to understand what’s available to you.
Finally, you can secure funding from investors. EV charging can be lucrative, and many investors are taking the plunge. While federal funding drives EV infrastructure, surveys show a growing interest from private investors. Developing a great business plan could help you attract supporters who help fund your venture.
Challenges and Opportunities in EV Charging
Even with substantial earning potential and growth, there are many challenges to navigate.
One of the biggest is navigating changing technologies and standards. EVs are still in their infancy. Battery capacity and charging improvements make EVs more compelling to drivers, but there’s still room to grow.
Charging protocols and standards, in particular, are evolving. For example, some charging stations use Type 1 connectors while others use Type 2. Different AC and DC charger connectors exist worldwide. Click here to understand the difference between AC and DC fast charging.
There are efforts to standardise EV charging. In 2022, Tesla made its EV specs publicly available and announced it as the North American Standard.
Market variability and competition also present challenges for business EV charging ventures. Because EV adoption is still relatively low compared to traditional internal combustion vehicles, there’s a degree of market variation in the future. Projects show EV adoption increasing, but there’s no way to guarantee market conditions moving forward.
Competition can also impact future profitability and success. As more drivers turn to EVs, newer competitors will inevitably arise. Of course, competition breeds innovation. It’s important to continue innovating and providing the best service possible for the rapidly expanding EV market.
Conclusion
Ultimately, EV charging business opportunities outweigh the potential challenges. EV is the way of the future, and there’s no better time than now to capitalise. Investing in the emerging market can generate generous revenue and help you join the EV revolution! The key is staying informed and being proactive about new opportunities and challenges while pushing the boundaries with new business innovations.
When you’re ready to invest in business EV charging, turn to EN Plus.
EN Plus is a leading manufacturer of EV chargers, offering numerous business solutions to entrepreneurs like you. Explore business solutions like the Corebox Series and Turbo Series of chargers. EN Plus provides future-proof solutions to increase business EV charger efficiency and maximise revenue. Call today to learn more and take the first steps in launching your EV charging business.
