September 27, 2022
Here Are The Common Pricing Models for Maximizing EV Charging Station Profitability
5 Min. Read
An EV charging station is an amenity that can make your multifamily or commercial property significantly more appealing. Due to the upfront cost of the installation, it is important to consider the ROI of the project.
Are EV charging stations profitable? Let’s take a closer look at costs and revenues.
How much does an EV charging station cost?
On average, installing Level 2 commercial EV charging stations will cost anywhere from $3,500 to $15,000 per port. The price will depend on various factors such as the complexity of the installation, distance from the chargers to a power source or electric panel, and any other service or infrastructure upgrades required to support the charging stations.
The good news is that states and utility companies offer numerous EV charging rebate and incentive programs to help offset the cost of installation, ranging from rebates to reduced electric rates.
Some utility companies or localities also require you to add a dedicated meter, and you might have to pay for updates to your parking structure to improve accessibility.
| Level 2 Chargers | DC Fast Chargers | |
| Total cost | $3,500 to $15,000 per port | $18,000 to $350,000+ per port |
| Power output | 3.3 kW to 19.2 kW | 50 kW to 500 kW |
| Segments | Ideal for workplace, multifamily, retail, take-home fleets and fleets using depots without rapid turnaround needs. | Ideal for travel centers, high-traffic public sites, and fleets that need rapid turnaround. |
While DC fast charging provides impressive charging speeds of around 30 minutes for an 80% charge, the most practical EV charging stations to install are Level 2 chargers. These devices require a dedicated 240V circuit.
What are the most common pricing models for EV charging station profitability?
Hosting on-site EV charging is fast becoming a modern amenity that earns additional revenue for property owners. However, there are a variety of ways to structure the price you charge drivers for using your chargers. Here are some common pricing models:
Charge EV drivers for energy consumed (per-kWh billing)
The recommended model is per-kWh billing, where tenants are charged based on the exact amount of electricity (in kilowatt-hours) consumed during their charging sessions. This mirrors utility billing for household electricity and ensures fairness by tying costs directly to usage.
You can ensure fair access to chargers by implementing time limits or reservation systems to prevent “charger hogging.” In high-demand complexes, consider surge pricing during peak hours to manage access.
A 2023 study by the National Renewable Energy Laboratory (NREL) on multifamily EV charging found that per-kWh billing was preferred by 78% of tenants surveyed in California complexes due to its fairness and transparency. Complexes using this model reported fewer disputes and higher tenant satisfaction compared to flat-fee or time-based systems.
Charge EV drivers a flat monthly fee (subscription model)
Charging a flat monthly fee can make sense for multifamily properties in areas with limited EV adoption. An optional flat fee can appeal more to tenants than a rent increase.
Commercial property owners should also consider this subscription-inspired model. Another benefit you can offer with this payment model is offering different usage tiers to accommodate varying charging needs.
Charge EV drivers an hourly rate
Charging an hourly rate can be advantageous if you already have the infrastructure in place to enforce it. For commercial property owners who already manage a paid parking infrastructure or utilize trackable scan cards to access amenities, charging EV drivers by the hour is an approach that makes sense.
Charge tenants higher rent for EV charging access
Increasing rent can be a way for multifamily property owners to cover the cost of the installation project and ongoing maintenance costs. Recent data shows that multifamily tenants in the U.S. are willing to pay higher rent in exchange for access to EV charging–an additional $28.12 per month.
EV owners are more likely to sign rents with businesses that offer reliable charging stations. Opportunities exist for multifamily properties to differentiate themselves by providing convenient and reliable charging options for customers.
Hosting EV chargers can unlock other forms of value
Billing EV owners to use your chargers will generate revenues, but this electrification project will create value in other ways as well:
- Positioning your business or rental property as an environmental leader can open up new opportunities.
- For commercial properties, EV chargers can increase awareness of the business and bring in more traffic.
- A Level 2 EV charging station can help a rental property stand out and make it significantly more appealing to tenants who own an EV or to the 52% of car buyers who are considering an EV purchase.
- Cities like Seattle or Ann Arbor are requiring new buildings to include EV charging. As more cities adopt similar measures, investing in an EV charger now can help you prepare for future requirements.
Are EV charging stations profitable?
Yes, EV charging stations can be profitable for many reasons. In addition to generating new revenue streams from the chargers themselves, businesses are likely to see increased foot traffic and more in-store purchases while customers charge their vehicles. Available federal, state, and local incentives reduce the overall investment cost and shorten the payback period.
| Level 2 (AC) | Level 3 (DC Fast) | |
|---|---|---|
| Average Dwell Time | 2–8 hours | 20–60 minutes |
| Installation Complexity | Low to moderate (requires 240V circuit; often uses existing panels with minimal upgrades) | High (needs 480V+ three-phase power; major grid upgrades, trenching, and permits often required) |
| Usage Assumption | Lower rates but higher utilization.
|
Higher rates but shorter sessions.
|
| Average Annual Revenues | $20,000–$30,000*
|
$40,000–$100,000+**
|
| Available Rebates & Tax Incentives | A 30% federal tax credit is available up to $100,000/port (via the 30C tax credit). Rebates worth up to $4,000–$12,000 available from select state and utility programs. | Same federal 30% credit (up to $100,000/port). State/utility: Rebates worth up to $10,000+ available from select state and utility programs. |
Note: Figures can vary by location, site specifics, and usage.
*Range assumes 5 sessions per day at $0.40/kWh, 20–30 kWh/session.
**Range assumes 10+ sessions per day at $0.50+/kWh, 40–60 kWh/session.
Get a quote for installing Level 2 EV chargers at your property
Qmerit takes the stress out of vetting charging station installers to start growing your infrastructure.
Our mission is to make electrification accessible and affordable. We can help you manage the EV transition and discuss ways to offset costs through utility incentives and financing.
With over 770,000 EV charging stations installed, the Qmerit Installer Network leads North America in electrification and our team is here to help you navigate all your energy transition needs.
Learn more about our turnkey solutions for Commercial EV Charging or give us a call at (888) 272-0090 to see why we’re North America’s most trusted EV charger installer.
