New business models can make public EV charging profitable for businesses, but public support will still be needed for a while, according to a new report from the Center for Climate and Energy Solutions (C2ES).
The report, Strategic Planning to Implement Publicly Available EV Charging Stations: A Guide for Businesses and Policymakers, is intended to answer questions that private investors and state and local agencies may have about whether and how they should invest in public charging infrastructure.
Financially viable charging projects can be supported by indirect revenue streams. For example, automakers may form partnerships with charging station operators, or retail businesses could co-host a charging site in order to attract new customers.
Even with these business models, however, some projects may not be profitable soon enough for investors. The guide shows how near-term public support such as grants, low-interest loans, and vehicle purchase incentives can make public charging projects an attractive investment.
“As with many new technologies, EV charging will need creative business models and public support,” said Nick Nigro, a C2ES Senior Advisor and lead author of the report. “With this support in the near term, new business models that capture indirect revenue can gradually make publicly available charging projects profitable for private businesses.”
“This guide highlights important strategies to help policymakers optimize public investments and leverage private capital in the EV market,” said David Terry, Executive Director of the National Association of State Energy Officials, which collaborated on the report.