EV charging station business models for the workplace [2023 update]

More Employees Will Drive Electric Vehicles

Worldwide, the electric vehicle (EV) market is booming. Sales doubled in 2021, grew by 60% in 2022, and surpassed the 10 million mark for the first time, now accounting for 8.3% of the global car market. We're clearly moving toward electric mobility, and workplaces are no exception.

Many companies providing company cars to employees are exploring the electrification of their fleets. This isn't just a more sustainable option; it's also economically viable in the long run. While EVs may appear more expensive upfront, the total cost of ownership (TCO) is often lower than that of internal combustion engine (ICE) vehicles.

Even if your organization doesn't operate its own fleet, installing EV charging stations at your facility can still make sense.

EV Charging at Work

With more people adopting electric mobility, it’s inevitable that more of your employees will start driving electric cars. Offering EV charging at your workplace can help attract new talent and boost employee satisfaction.

One of the biggest advantages of driving an EV is the ability to charge wherever you park, eliminating the need to visit gas stations.

While home charging is ideal for many drivers, workplaces rank second as the most desired location for EV drivers to charge their vehicles.

Support Your Employees in Switching to Electric Mobility

Many employees in urban areas might not be able to install a charger at home due to a lack of personal parking spaces or challenges with connecting a charger to their meter box. For these employees, relying solely on public charging infrastructure can be daunting, especially with range anxiety and insufficient charging stations. Providing charging at work could be the tipping point for them to switch to electric mobility.

However, offering EV charging at work doesn't have to be free. Even if you offer discounted rates to employees, it can still serve as an additional revenue stream for your business.

Beyond just installing EV charging stations, there are numerous other ways your business can benefit from this shift.

EV Charging for Visitors

Many businesses see their parking lots filled with cars belonging to visitors rather than just employees. These include clients, business partners, and customers who are increasingly driving electric vehicles and would appreciate the ability to charge at your office.

Depending on your business type and location, it might be worthwhile to open a few parking spots to the public, generating revenue from charging sessions, attracting new customers, or both.

EV Charging Business Models

Let’s explore the different business models for EV charging at your organization.

1. Free EV Charging at Work

As a workplace, you could offer EV charging as an employee benefit. An employee benefit is any form of compensation beyond salary, such as an Employee Value Proposition (EVP).

Such benefits are essential for attracting and retaining top talent. A Gallup study found that 71% of workers consider a company’s environmental record when choosing an employer.

Offering free EV charging is not the sole solution to employee happiness, but it can be a highly appreciated perk. Pairing it with other benefits can make your organization stand out.

2. Workplace EV Charging as a Revenue Stream

While offering EV charging as a benefit has its advantages, another approach is to charge users for access and even open the stations to third-party users. This can create an additional revenue stream and offset the cost of electricity.

Depending on the type of business and location, installing publicly-accessible EV chargers can direct EV drivers to your business, potentially leading to cross-selling or upselling other products or services. Employees could also receive discounted rates, enhancing their satisfaction.

Different pricing strategies can be implemented:

• Users can be charged a flat rate per hour or day, irrespective of energy consumption.
• Alternatively, users can be billed based on actual energy usage, ensuring fairness.

These approaches can be combined by charging a fixed activation fee and then billing for energy consumed. Employees could benefit from discounted rates compared to visitors, or you could limit free charging to certain time slots or electricity amounts.

No matter whether EV charging is used to generate revenue or as a benefit, businesses need to consider several aspects when installing charging infrastructure, particularly if multiple user groups are involved.

The charger must support various payment methods and settings, which can quickly become complex to manage manually. In most cases, charging management software is recommended to handle these transactions seamlessly.

Charging Management Software for Workplace EV Charging

In today’s digital age, access to data and insights is crucial for making informed decisions. Modern charging stations are more than just hardware—they connect to software management systems.

A good charging management software allows you to easily manage your assets, set different charging tariffs, and analyze driver behavior.

Charging management software also boosts energy efficiency through smart charging features like load balancing. This ensures that the charging station never exceeds the set current from the grid and distributes available capacity intelligently among all charging stations.

When it comes to invoicing, smart charging software can accurately attribute costs to the right stakeholders, automating payments and reimbursements. This eliminates manual accounting tasks and ensures a smooth invoicing process regardless of the user.

Finally, charging management software simplifies reporting, generating actionable insights into charger status, charging patterns, and energy consumption. This helps companies make better business decisions and optimize their energy efficiency.

The Rapid Growth in EV Charging Infrastructure Needs

As EV adoption rises, consumer attitudes are shifting, with nearly half of drivers considering purchasing an electric car. To meet this growing demand, we need sufficient charging infrastructure.

According to ChargeUp Europe’s State of the Industry report, the total number of EU charging points is expected to jump from about 3 million today to nearly 30 million by 2030, with workplace chargers rising from 10% to 15%. In the U.S., the International Council on Clean Transportation found that public charging, including workplace charging, will need to grow to 2.4 million non-home chargers by 2040 to support the transition to EVs. In the UK, workplace chargers already outnumber public charge points.

Workplaces worldwide are uniquely positioned to capitalize on this trend by satisfying employees, attracting new talent, or even creating an additional revenue stream.

For more information on workplace EV charging, read our complete and free guide or check out our workplace charging solution.