How to Start a Mobile Electric Car Charging Station Business?

The market penetration of electric vehicles (EVs) in the United States is increasing at an unheard-of rate, yet there is not enough charging infrastructure to service every site.

The International Energy Agency (IEA) releases its “Global EV Outlook” annually with the intention of presenting a comprehensive overview of the existing electric vehicle industry.

The IEA study has made it abundantly evident over the past few years how crucially certain important localities are to the worldwide transition to EVs.

Many people, including the IEA, have come to the conclusion that cities and local governments, who are in charge of building the infrastructure for EV charging, are principally responsible for EV adoption and its favorable effects on the environment and the economy.

It’s critical to comprehend why your city wants to establish electric car charging stations and encourage the purchase of zero-emission vehicles now that the transition to sustainable energy is well underway.

Electrification is necessary right now. You will lose out on EV charging incentives (rebates and tax credits) and the other economic advantages EV charging stations provide if you wait to install them on your site.

Numerous organizations are giving EV charging refunds for companies – some up to 100% of the entire cost of the EV chargers and installation – without knowing when they will run out to promote the EV industry’s rapid growth.

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Who Should Install Mobile EV Charging Stations?

Many drivers are drawn to the promise of fast-charging options at reasonable costs, but there must be a balance between supplying quick, cost-effective EV charging and providing slow, inconvenient charging that customers won’t value.

Level 3 chargers are too expensive for many business executives who seek out electric car charging stations as a commercial opportunity, as opposed to standard-issue systems or Level 2 aftermarket chargers, as they cost roughly ten times as much as Level 2 chargers.

Similar to how drivers of cars with internal combustion engines look for the cheapest, most convenient gas station, EV drivers often pursue charging at the lowest price point in the most convenient locations. The only restriction for EV drivers is that Level 1 charging is too sluggish for their needs. Therefore, they don’t want to be connected to it.

The majority of respondent EV owners who already have a Level 2 aftermarket charger at home and are paying approximately 75 cents per hour in utility costs are willing to pay up to $3 per hour for public charging solutions, according to a survey conducted in 2020.

Installing Level 2 chargers gives businesses looking to generate passive income a cost-effective option that will draw customers.

Business Districts

Offering a charging station helps recruit EV drivers since individuals park at work more frequently than any other location, with the exception of their homes. In fact, according to a recent poll by the US.

Department of Energy, 80% of companies that have EV charging stations said that having them has helped them hire and keep more people. Commercial EV charging infrastructure thereby advances businesses’ sustainability goals as well as their bottom line.

You might not be familiar with the different EV model types if your charging stations will be utilized by staff, visitors, and consumers.

Instead, you might need to concentrate on projecting consumption based on the information you already have or can access, such as the number of employees who own EVs, the volume of existing visitors and customers, and projections of how many of them may use EVs.

The technician who comes to your location will be able to provide you with advice on the best charger or chargers for the majority of car models.

Shopping Malls

When Americans are not at work or home, they frequently go out to eat and shop. This also applies to EV owners who naturally prefer to park where they can charge their vehicles while having fun.

Commercial EV charging stations can be installed in public parking lots, business areas, retail stores, dining establishments, and malls to draw in these customers. Even if they are waiting for their EV to charge, customers could stay longer!

Service Locations

Public buildings, healthcare facilities, and academic institutions frequently strive toward sustainability objectives and can earn LEED points for adding EV charging stations. As mentioned above, these candidates frequently have a sizable personnel base and might attract more talent with this green choice.

Communities

Not every EV owner lives in or wants to live in their own home. However, a location lacking an EV charging station cannot satisfy their demands, forcing them to leave potentially ideal housing possibilities.

Adding EV charging stations, apartment complexes, condos, and other multifamily structures may overcome this problem. This raises the value of their home and attracts potential residents who use electric cars.

Setting Up a Mobile Electric Car Charging Station

Before making a purchase, it’s critical to understand the essential characteristics to look for, as not all charging solutions are made equal.

Your brand will be reflected in your choice of AC or DC (rapid charging) stations, so it’s a good idea to go with something dependable, usable, and clever. “Range anxiety” is the main barrier preventing ICE car owners from converting to EVs.

When a charge is needed, drivers are concerned that they won’t be able to find a charging station. Or the charger they find while on the road won’t function properly or at all for their EV. Reliability is crucial because of this. Getting a charger for your EV charging business that you know will function with all types of EVs is crucial.

Additionally, be sure to look at the charger’s performance history. Is it known for delivering dependable service or for malfunctioning? Getting a dependable charging station from a dependable business with a reputation for providing timely, efficient customer care is critical.

The EVs are slowly charged using AC chargers. Since these slow chargers use less electricity, they are simple to install in any household complex. They do, however, take an average of 6 to 14 hours. They are less expensive and simple to use. These chargers are often used by two- and three-wheeled electric vehicles.

These EV fast chargers are often located beside key routes around the nation. The devices supply high-power direct current (DC) to swiftly recharge an EV. Vehicles with large battery capacities and quick charging capabilities can use fast chargers.

Therefore, quick charging is not available for cars two and three. The power of these machines typically ranges from 15 kW to 150 kW.

Business Plan

Setting up a mobile electric car charging station is like setting up any other business. The first thing that you are going to need is a business plan. Starting an electric vehicle charging station is a significant venture that needs a thorough action plan.

As a result, it is anticipated of you to make sure that you invest time in creating a business strategy that will aid in running the company.

A business plan is a blueprint for how you want to run the company, not merely a document required when looking for investors or a loan. It should include concisely described methods for raising money. How to get clients, how to grow the business, and how to maximize your investment.

Get a Feasibility Report

Conducting feasibility studies is, without question, one of the greatest measures you would need to take if you want to start any significant business. You should set aside time to do your own feasibility studies if you plan to open your own electric vehicle charging station.

It is crucial because you can learn the number of electric vehicles in the areas where you plan to install your car charging station and the frequency with which people use public electric vehicle charging stations.

Most people who own electric cars have a way to charge them at home; they only utilize public charging stations when they are out of town.

Build a Website

When starting a business, creating a website is essential, and with the correct tools in place, this can be a straightforward chore to cross off the list. It’s time to begin the design step after selecting the domain, web hosting, and platform.

Themes are a terrific method to create the basic identity and style of your website, which encompasses everything from font selection to blog post formatting.

Simply looking through the different themes and testing them out on your website is one of the greatest ways to get started. If you’re truly not cut out for web design, you might want to think about hiring a web designer on the side to help you realize your ideas and build your brand.

Get Your EV Charging Station Registered

The limited liability corporation, or LLC, is a type of firm perfect for business owners who want extra protection from personal liability.

Since you may serve as your registered agent to fulfill the operating agreement, an LLC is the easiest and least constricting form of business structure to set up and run. Additionally, no taxes will be paid twice, thanks to this unique corporate structure.

A tax categorization called an S Corporation informs the Internal Revenue Service that your company will employ partnership taxation. It’s vital to keep in mind that starting a corporation is more challenging than starting an LLC since you must first register as a C-corp before meeting more stringent requirements to convert to an S-corporation.

While offering minimal liability protection, this company form permits any corporation with 100 shareholders or less to be taxed as a partnership.

Companies in the USA must register with their local Secretary of State office. The government will analyze the paperwork and examine all the material after receiving your registration criteria and before approval. The length of this procedure may change based on the state.

An application for an LLC or S-corporation may be approved by the Secretary of State in most US states in 4 to 6 weeks, occasionally taking longer.

In certain states, including New York, expedited processing is an option. Paying the additional charge (which varies across states) is advised if your company strategy substantially relies on timing because this service reduces the processing time to 2–3 working days.

The Cost of an EV Charging Station

How much does establishing a business that offers EV charging in the United States cost? The cost of constructing an electric charging station varies depending on the station’s size, power, and potential, i.e., the cost of putting up an EV charging station ranges from 14,000 to 50,000 dollars in addition to enough space for moving cars.

There are three kinds of chargers: slow, standard, and rapid. The Indian government has removed the licensing requirements for starting an EV Charging Station company.

The setup cost will be recovered by an operator in around three years if we assume 8 hours of use per day and a profit margin of roughly 10 cents per unit of power charged.

According to EVS reporters, the expense of operating, which includes on-time salary payments and equipment maintenance, may appear prohibitive. However, a long-term perspective and the ability to make investments should keep you strong until the day when the business will surely be lucrative.

Installing a single Level II EV charger typically costs around $6,000. If you multiply this by five, ten, or twenty charges, a commercial station may cost between $30,000 and $120,000. However, the homeowner won’t have to pay the whole amount because of several incentives offered around the country.

The federal EV tax credit reimburses up to $30,000 of these expenses, and additional local incentives may be available. For instance, a publicly accessible station installation in Michigan may be eligible for a $5,000 per charger discount. That’s a save of $50,000 for a 10-charger installation.

Did you know that installing EV charging stations at your place of business will qualify you for grants and subsidies? Using federal and state incentive schemes, you can bring EV drivers to your location with low to no out-of-pocket costs.

Incentives can help you cut expenses whether you decide to directly monetize your EV infrastructure by charging users for their use or using them for marketing your brand as an environmentally concerned business. Businesses can receive up to $30,000 in tax credits under the 2020 30C program for installing EV chargers at each location.

Final Thoughts

And that’s a wrap on setting up mobile electric car charging stations. Given the increasing popularity of electric vehicles in the United States, it only makes sense to want to set up a business that shows much promise.