In today’s competitive landscape, Multi-Family owners must think of creative ways to attract customers while also boosting the value of each tenant. Transforming your property into an EV charging destination is one of the simplest ways to do just that. The US is among the top markets for electric vehicles and almost half of all the US sales of EVs in 2019 were from California. The number of EV car owners continues to grow each year. A new report from Experian dug into new car registrations to show that electric vehicle sales grew 95% between January and April 2021 compared to 36% for the overall US new car market. This also indicates a growing demand for making EV charging stations more accessible.
Here’s why you should install EV charging stations for your multi-family building:
The most obvious way EV charging can boost profits is the revenue earned from the stations themselves. Depending on the business model you choose, you can generate additional income by setting charging fees, and your customers will be more than happy to pay them. As the charging station owner, you can set your own charging fees and adjust them at any time. This may include a fixed session start or connection fee and a variable rate for the energy used. One common practice is to charge by the amount of energy being used (i.e., $0.10/kWh). You also have the freedom to define your own mark-up (i.e., $0.35/kWh). So, if a car pulls up and needs to charge 25 kWh, that’d be: 25 kWh x $0.45/kWh = $11.25.
EV charging stations also put your business on the map—literally. Popular navigation sites like Google Maps or Waze, and dedicated charging apps such as Plug Share feature interactive maps that enable drivers to locate nearby public charging stations. By having charging stations at your site, you can boost your brand visibility on these platforms and attract new customers.
Environmental concerns are increasingly top-of-mind for your customers. By having charging stations on your property, you can establish your business as an eco-conscious organization—and even earn some prestigious sustainability certifications for your location (LEED, GBB, WELL). Additionally, you may even opt for selling solar to tenants as a part of your green strategies for your multi-family unit.
Renters are seeking properties that align with their personal views of green initiatives. Properties that check the boxes for amenities like shared solar, EV charging stations, or designated parking spaces for EV vehicles are highly preferred. And the absence of proper facilities for EV owners in a multi-family property can be a deal-breaker for many. According to the Q4 2019 Experian Automotive Quarterly Briefing, over 70% of EV owners are college-educated, married, and belong to a high-income category. If that’s the demographic you are targeting for potential tenants, you may want to make your property more EV owner-friendly.
You can cover the cost of setting up EV charging stations at your property through several incentives. There are several regional rebates available through municipalities and other entities for those installing EV charging amenities in multi-family properties. If your property is in Southern California and you are planning to get one of the approved EV charging stations, you can get a rebate of up to $80,000 from the California Energy Commission.
Offering amenities that promote sustainable living is not just important for doing your bit for the environment but you may also need to do it to ensure that you are not breaking any laws. Even if your municipality doesn’t have any building codes that stipulate EV-charging stations on-site, you can surely expect it to come into the picture soon. Installing EV charging stations is an excellent way to future-proof your properties to ensure adherence to EV-friendly municipal building codes.
The US is not a young EV market anymore. This means that a good chunk of the EV charging installations and other infrastructure that are available have already been tested out well over the years. Electric vehicles are monumental towards the creation of a sustainable lifestyle. Offering amenities that encourage the use of EVs are definitely an important contribution you can make to a cleaner environment. EV charging is a desired amenity for many California drivers and can attract more traffic to your business, improve tenant or employee satisfaction and generate a new revenue stream (fees for charging). It is going to be an important factor that tenants are going to consider when choosing where they want to live.
Learn how you can Combine EV Chargers with Shared Solar
CA has passed laws like AB802 and Title 24, mandating renewable energy on certain multi-family properties?
Click Here to learn more about how you can comply while turning a profit with Ivy’s Virtual Grid alternative to traditional Sub Metering.