Article by:
Nikki Chi
Topics:
Research
Published:
June 8, 2023
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Growing Demand for EV Chargers at Multifamily Buildings

As electric vehicles (EVs) become more prevalent on our roads, the demand for EV charging infrastructure is rapidly increasing. While most EV charging stations are currently installed at workplaces, public areas, and single-family homes, multifamily buildings are emerging as crucial locations for the installation of EV chargers. With over 46% of the California population renting, providing access to EV chargers in these locations is essential to meet the needs of EV drivers and support sustainable transportation. In this blog post, we will explore the demand for EV chargers at multifamily buildings, the benefits and challenges of installing EV chargers, and strategies for overcoming these challenges.

Impressive and Growing Demand for EV Chargers

You’ve likely seen a noticeable increase in EV charging stations at grocery stores, parking garages, and malls. But, it’s hard to equate that to demand for EV chargers at your multifamily property. That leaves many owners wondering if an EV charging investment is worth the time and money. Here are some impressive statistics that should help you with your decision:

  • Electric vehicle sales increased by 67% from 2021 to 2022.
  • Expert projections say EVs will be about 30% of all auto sales by 2030.
  • Research shows that the US needs 9.6 million new EV charging ports by 2030, with 80% being residential (single-family and multifamily).
  • Nearly 50% of all US sales of EVs in 2019 were in California.
  • A National Multifamily Housing Council study found that 27% of renters would pay more per month to have EV charger access.
  • Incentive programs with utility companies in California have covered $240 million of EV charging infrastructure costs at multifamily properties since 2016.

As more people purchase electric vehicles, the need for EV charging infrastructure will continue to grow. And, as these statistics illustrate, there is an opportunity to maximize your return on investment by taking advantage of current incentives and marketing this amenity to current and new residents.

Benefits of EV Chargers for Multifamily Properties

Installing EV chargers at multifamily properties offers a range of benefits. Possibly one of the highest on the list is that it increases property value and resident retention, and attracts environmentally-conscious residents who are looking for sustainable housing options. It improves your property's Environmental, Social, & Governance (ESG) rating, which is becoming increasingly important for investors and stakeholders. Also, providing EV chargers can contribute to a more sustainable future by reducing carbon emissions and supporting cleaner modes of transportation.

Finally, installing EV chargers can increase revenue by providing a new source of net operating income (NOI). This helps offset the upfront investment, which is further reduced by tax credits and incentives that are currently available for EV chargers. Overall, these benefits make EV charger installation a smart investment for multifamily property owners looking to meet the needs of EV drivers and support sustainable transportation.

Overcoming EV Charger Challenges

There are many benefits to installing EV chargers at multifamily buildings, but there are also challenges that property owners must overcome–as is the case with any new technology. Some of the main challenges are:

  • Designing a system suitable to your limited space and parking availability.
  • Upfront costs and ongoing maintenance expenses of EV chargers.
  • Many technical and regulatory steps, such as securing permits, approvals, choosing equipment, and installation.
  • Ongoing management of EV chargers, including decisions on billing for resident usage.
  • It’s easier (and almost four times cheaper) to add EV chargers to new construction than it is to retrofit.

To successfully install EV chargers at multifamily properties and overcome the challenges, property owners can adopt several strategies. First, turn to industry experts for support. Ivy Energy is experienced in the space and our team would be happy to answer any questions you have about adding EV charging to your multifamily property. Then, once you have the right team in your corner, you can collaborate to secure incentives and rebates, reducing the upfront costs of EV charger installation. Additionally, innovative charging solutions such as shared or dynamic charging can maximize the use of available parking spots and reduce the need for additional charging infrastructure. Prioritizing the most efficient and cost-effective charging equipment can also help property owners reduce ongoing maintenance and electricity costs. Finally, educating tenants on EV charging etiquette and best practices can promote responsible charging behavior and prevent issues such as overloading the electrical system or hogging the charging station. By adopting these strategies, multifamily property owners can overcome the challenges of EV charger installation and provide a valuable amenity for their tenants.

The Time is Now to Maximize Your EV Charger ROI

Overall, the benefits of installing EV chargers at multifamily buildings outweigh the challenges and can be a smart investment for property owners looking to meet the needs of EV drivers and support sustainable transportation. The impressive and growing demand for EV chargers is a clear indication of the shift towards sustainable and low-carbon mobility and highlights the importance of continued investment in EV charging infrastructure. In response to EV charger demand, governments and utilities around the world are investing in EV charging infrastructure to support the transition to cleaner transportation. The recent passing of the Inflation Reduction Act has reinstated a tax credit of up to 30% of the cost, providing a financial incentive for building owners to invest in EV charging infrastructure. When combined with the short timeline of many utility incentives, the time to add EV charging to your multifamily property is now. To learn more about how Ivy Energy can support you, schedule a demo with one of our team members today.

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