Electric vehicles (EVs) are the future of transportation. They are more environmentally friendly than internal combustion engine (ICE) vehicles and they can be charged from virtually anywhere at a fraction of the cost of gasoline. As time goes on, EVs will be cheaper to produce, and updated battery technology will increase driving range and decrease charge times. This shift is expected to occur around 2030, and when it happens, EVs will be well on their way to dominating the commuter and commercial vehicle markets.
In 2021, the Biden administration passed the Bipartisan Infrastructure Law which highlights how the U.S. will support the transition from ICE vehicles to EVs:
- Seven billion dollars in funding to expand the United States’ EV charging network to 500,000 stations across 53,000 miles of roads by 2030
- Five billion dollars will be set aside for each state with another $2.5 billion available as grants
- The Department of Transportation (DOT) announced $615 million will be available for states to access in fiscal year (FY) 2022
- An additional $285 million will be available for special use cases which totals over $900 million in funds that will be available in 2022 and 2023
The below chart breaks down how the $615 million in initial funds will be split among each state in FY 2022:
|District of Columbia
The DOT states that funds can be used for constructing new charging stations or upgrading existing ones, on-site electrical service equipment installation and operation and maintenance. As more states’ funding applications get approved, they will start developing plans for EV charging operators, private companies and current fueling stations that meet specific criteria to access those funds. The below highlights how each of these businesses can expand their footprint and earn more revenue:
EV Charging Operators:
The goal of the Bipartisan Infrastructure Law is to build a network of convenient charging locations every 50 miles across America’s roadways. There are several different ways EV charging operators can earn new revenue through this law. There are already thousands of fueling stations, rest stops, attractions, restaurants and retailers across the U.S. Interstate corridor. Almost all of these businesses will want to take advantage of EV charging revenue opportunities and will submit requests to their state governments to access funding to install EV chargers at their sites once it becomes available. EV charging operators should already be building a relationship with these businesses to help them understand what charging models are right for them along with new revenue opportunities that will be available.
In addition to providing chargers for existing businesses, there will also be opportunities for EV charging operators to build their own charging network. There are thousands of high-traffic areas across the country that don’t have any type of business occupying the land which means development opportunities will be available. Charging operators who have been looking to develop their own network of chargers will now be able to bid on land and have their initiatives heavily funded by each state they do business with. By owning the land, charging operators can also develop buildings for restaurants and retailers to move into. This will help make their sites more desirable for EV owners to charge at and will also give them revenue from rent as well.
Non-Fueling Private Companies:
EV chargers can be installed anywhere that power can be supplied to them. Businesses that are located along a U.S. interstate should be part of a power grid where installing both level 2 (L2) chargers and direct current fast chargers (DCFCs) is possible. Even if infrastructure upgrades are needed, those types of projects are covered under the Infrastructure Law and should be included in any funds the business receives to install EV chargers.
The type of charger each business could get depends on the business itself. Any business where customers occupy the space for less than an hour should install DCFCs at their sites. DCFCs are the fastest chargers available which give users the most bang for their buck. Some DCFCs can provide an 80% charge after 15-20 minutes of charging. If a customer is at a convenience store or grabbing fast food and wants to charge their EV while there, the only way they will get a meaningful charge, and for the business to earn revenue, is to offer fast chargers.
For retail and attraction businesses along the U.S. interstate system, a mix of DCFC and L2 chargers is the best route to go. Some customers may spend less than an hour at the business and will want to charge their vehicles as quickly as possible. There might also be customers who make a significant pit stop at these sites and don’t need to charge their vehicles as fast. For them, it makes no sense to charge from a DCFC and pay a fee to park at the spot once the car is done charging. Instead, charging at an L2 charger will provide them a decent charge over a few hours and they won’t take away a charging spot from someone who needs it.
Similar to non-fueling businesses, most fuel companies should already have the infrastructure in place to add charging stations to their sites. The biggest challenge they will face is allocating space on-site to place the chargers and have EVs charge in a separate area from the traditional fuel pumps. Massive truck stops and fueling stations that are on acres of land should already have this space available, but traditional gas stations might need to work with their respective governing bodies to expand their sites.
For fuel companies, DCFCs make the most sense to install. Most people don’t spend an extended amount of time at a fueling station and want to be back on the road quickly. EV owners will have the same mentality when they pull into a fueling station to charge their vehicles. By offering a significant number of DCFCs that can charge an EV to 80% in 15-20 minutes, fueling stations should be able to serve the needs of their EV customers.
EV Charging Considerations and Sevan:
When creating plans to install EV chargers at your sites, the first thing that should be done is to talk with an EV charging operator. They will be able to work with you to understand your needs and tailor a charging strategy that works best for your business. They will discuss key charging topics including:
- Charger comparisons and prices
- Installation and maintenance costs
- Rental or leasing opportunities
- Networked vs basic chargers
- Pricing models (charge-based pricing vs time-based pricing, hybrid pricing and subscription services)
- Additional revenue opportunities (advertising and geofencing)
Sevan has helped manage several EV installation programs for our clients in the U.S. and the U.K. We partner with our clients to understand their exact needs and provide customized solutions to help them execute their unique initiatives. Sevan puts your capital to work—creating speed and scale—providing
cost savings by reducing construction timelines. Our solutions dramatically enhance efficiencies and
accelerate schedules for high-quality program rollouts to maximize ROI from open sites.
Whether you’re adding EV charging stations to new developments or as part of a remodel to current sites, Sevan has solutions to help you execute your programs:
- Program management
- Development services
- Surveys and facility assessments
- Technology and data analytics
- Architecture, design and engineering
- Civil zoning and permitting
- Construction management and closeout
Sevan offers Mission Alignment Process (MAP) sessions to make sure everyone is aligned before a program starts. During MAP sessions, Sevan sits down with our clients to define roles and responsibilities—and what success looks like at every stage of the program lifecycle. We also offer safety solutions to help clients execute safer programs. During these sessions, it is imperative for us to partner with our clients to:
- Define goals
- Assign roles and responsibilities
- Assess and develop processes, programs and trainings
- Schedule regular progress check-ins
Sevan, a certified veteran owned business, delivers data-driven, high quality and efficient turnkey solutions for your capital improvement programs. Our exceptional team is standing by to guide all your projects across the finish line. If you would like more information on EV chargers and finding a strategy that works for your business, read our EV Charging Whitepaper. If you are ready to move forward with your EV charging program, contact us today to schedule a MAP consultation and give your next program The Strength of Sevan!