Electric vehicles (EVs) are becoming more popular, and with them, the demand for EV charging stations. One frequently asked question is how EV electric car charging stations make money. There are several ways for stations to generate revenue, and we will look at some of the most common in this article.
Electric Vehicle Charging Stations
There are two types of EV charging stations: Public charging stations and Private/Home charging stations. Anyone can use public charging stations, whereas private charging stations are only available to specific individuals or organizations. Both types of revenue can be generated, but the methods may differ.
Electric vehicle (EV) charging solutions and gas station revenue can vary greatly depending on factors such as location, competition, and demand for EV charging services. However, due to a variety of factors, EV charging stations may not generate as much revenue as traditional gas stations.
In Australia, user fees are the primary source of revenue for EV charging stations. These can be paid per hour or per charge, and the amount varies depending on the type of charger and the level of service provided. Some EV charging stations also offer membership plans, which can provide frequent users with discounted rates.
Fuel Stations Revenue
On the other hand, traditional petrol stations generate revenue from the sale of gasoline and diesel fuel, as well as from convenience store sales. As of 2021, the average retail price for unleaded gasoline in Australia was around $1.50 AUD per litre, according to the Australian Institute of Petroleum. An average gas tank capacity of around 60 litres for a vehicle means that a full tank of gasoline will cost around $90 AUD.
Electric car Stations’ Revenue
In comparison, the cost of charging an electric vehicle (EV) varies depending on the type of charger and the cost of electricity. However, charging an EV is generally less expensive than filling up a gas tank.
According to the Australian Government’s Electric Vehicle Council, charging an EV at a public charger costs around $0.30 AUD per kilowatt-hour(kWh), while grid electricity costs around $0.20 AUD per kWh. For example, if an EV has a battery capacity of 60 kWh, it would cost approximately $18 AUD to charge the battery fully.
It’s worth noting that the revenue generated by EV charging stations will continue to rise as the number of electric vehicles on the road grows, and technology improves. Still, for the time being, the revenue generated by EV charging stations is less than the revenue generated by gas stations.
Charge times for fast charging and public EV charging stations
Fast charging is a type of EV charging that can charge an EV battery quickly, typically in under an hour. Public fast-charging stations (also known as super-fast charging stations) are becoming more common, and they have the potential to generate revenue through usage fees. These fees can be calculated based on the amount of energy used, the amount of time spent charging, or a combination of the two. Also, if you want to calculate your Ev charging time, you can use our time & range calculator.
New Business Prospects
For entrepreneurs, starting a business in the EV charging industry can be a fantastic opportunity. These stations can generate various revenue streams, including usage, subscription, and brokerage fees. Wholesale prices offered by various EV charger distributors can also benefit businesses.
Customer Segmentation and Business Concept
EV drivers are the most common customer segment for EV charging stations. On the other hand, car rental companies and fleet operators are potential customers. Starting a small business that specialises in EV charging solutions for car rentals. In this case, the charging services are included in the rental fee paid by the customer.
Canvas for Business Models
The Business Model Canvas is a tool for planning and visualising a business idea. Customer segments, revenue streams, and critical resources are part of it. Revenue streams for an EV charging business could include usage, subscription, and brokerage fees.
By Leasing and renting out EV Stations
Leasing entails renting out the station for a set period to a third party, such as a business or municipality. The lessee is responsible for maintaining and operating the station and any revenue generated by charging fees.
Renting entails charging drivers a fee for using the station per hour or per charge. This can be accomplished through a membership programme or using a credit card. Renting can also include advertising space on or near the station, sponsorships, and branding.
It is important to note that the profitability of an EV charging station will be determined by factors such as location, competition, and EV charging service demand.
Finally, there are several ways for Electric car charging stations to generate revenue. These include usage fees, subscription fees, brokerage fees, and renting or leasing the stations. Entrepreneurs can develop a solid business plan for starting an EV charging business by understanding the various revenue streams available.