EV Charging Station Incentives: How to Increase Your ROI
EV Charging Station Incentives
With nearly 2 million electric vehicles on the road in the US today, and that number is only growing, EV charging stations can unlock a whole new pool of opportunities for your business. EV drivers need to charge where they live, work, play, shop, and travel. Installing an EV charging station can attract these drivers in a way that benefits both your organization and EV drivers.
The advantages of installing an EV charging station don’t just include the actual use of your installations. There are many federal, state, and local tax incentives for installing EV charging stations, as well as possible incentives from electric utility companies.
LilyPad EV has the knowledge and expertise to guide your business through all of these EV charging station incentives. When considering an investment in EV charging stations, reach out to us. We can have a detailed discussion about what you’re looking for from your stations and how to get the best return on your investment.
In this blog, we break down the different kinds of incentives you can find for EV charging station installations so you don’t miss out on opportunities to improve your return on investment (ROI).
Why EV charging station incentives matter
To get the most out of your EV charging station investment, you need to take advantage of incentive opportunities to help your dollars go further and recoup your investment faster.
For a better understanding, here are the differences between the two levels of EV charging stations that we install.
- Level 2 Charging: This is the standard for commercial EV charging stations. Level 2 charging stations will charge cars nearly 4-5 times faster than Level 1 stations, with about 25 miles of travel or more per hour of charging. Ideal for public, fleet or commercial EV charging.
- Level 3 Charging / DCFC / Fast DC: The fastest option for charging, these DC stations can provide 250 miles of driving range or more per hour of charging or more. Typically used along highway corridors, Level 3 charging stations enable traveling longer distances.
We are an exclusive Tier 3 Channel Partner for ChargePoint, the top charging station manufacturer in North America. ChargePoint EV charging stations are quality products with options that fit every need and provide great support.
Each level of charging station we install has its own set of benefits.
Level 2 charging stations
Level 2 stations don’t use as much power as higher-level charging stations, so you can’t count only on the sale of electricity for your ROI. When patrons hook up to a level 2 charging station at your business, they are encouraged to stay longer, which may result in higher spending on your normal goods and services.
For restaurants, this could mean an increase in dessert or appetizer sales from longer visits. For retail, it could result in longer shopping time, which leads to more sales. Employers who install level 2 charging stations encourage a new pool of prospective employees to apply for positions, as well as being good stewards of the environment. Multi-family properties benefit from encouraging tenants needing EV charging who are more likely to remain in their apartments or condos.
Level 3 charging stations
These stations are capable of adding over 250 miles of driving range per hour of charging. Level 3 charging stations use significantly more power than the other charging levels. These stations are typically used along highway corridors or C-stores for fast charging on the go, but they benefit all EV owners in need of a quick charge.
With the added charging speed and electricity, an installation for a level 3 charging station can be at bit pricey but can still benefit your business. For travel centers and other businesses that already attract highway traffic, adding a level 3 charging station encourages EV drivers to patronize your center just like drivers needing gasoline.
And with more and more people turning to electric cars, instead of losing traffic you can tap into a new pool of customers. The additional sales of snacks and meals can help recoup investment costs for the charging stations.
For both levels of EV charging stations, incentives from federal and state governments, as well as utility companies, are a great way to boost your ROI.
How to find the best incentives
When looking for EV charging station incentives to bolster your ROI, it’s good to have an experienced guide. Our partner, ChargePoint, has a fantastic guide to EV charging incentives that can help you find the best incentives in your area. For a more personalized approach, reach out to us for a detailed discussion about what your charging needs are, and how to maximize your ROI.
IRS form 8911 provides a general business credit for businesses that install EV charging stations. The tax incentive is 30 percent of the installation cost, up to a maximum of $30,000 per address. Check with your accountant about the availability of this tax credit and how your business can take advantage of the opportunity. .
On top of what’s offered by the federal government, many state and local governments also offer EV charging station incentives. We have experience installing EV charging stations all over the country, and we can help you take advantage of all the incentives available to you.
Certain states are also making more aggressive moves towards banning gas-operated vehicles in the near future. Other states are encouraging businesses and cities to switch their fleets over to electric and install more EV charging stations to accommodate that switch. It may be in the best interest of your business to get ahead of these trends and install EV charging stations to meet the growing charging demand.
Utility companies also offer incentives for installing EV charging stations. They benefit from more people using more power, and they are increasingly investing in helping businesses install EV charging stations to meet the growing demand for electric charging.
In Missouri, for example, Ameren offers incentives for businesses seeking to install EV charging stations. Businesses that qualify for these incentives include workplaces, multi-family homes, and other publicly accessible locations. Businesses can receive an incentive of $5,000 per port for level 2 stations and $20,000 for level 3 stations. The incentive can cover up to 50% of the total project cost.
Electric Utility companies in other states may offer similar EV charging station incentives, so it’s crucial to check with your local utility company and find out what incentives they offer.
EV charging station ROI checklist
There’s much more to your ROI on your EV charging station installation than the money made from usage charges. This checklist will help you make sure you’re getting the most out of your investment.
- Check with your accountant to see if your organization can use the federal tax credits
- Find out if your state or local government provides incentives for EV charging stations
- Contact your local utility company and see what EV charging station incentives they offer
- Keep in mind the extra benefits from your station, like attracting new customers who are encouraged to stay longer and spend more while charging their electric vehicles.
The best way to ensure you are getting the most out of your EV charging station is to contact an experienced installer, like LilyPad EV, and allow us to guide you through the life of your project.
LilyPad EV can guide you to optimal use of EV charging station incentives
If you’re considering installing your first EV charging station, or you’re looking to add on to an existing installation, we have the experience and the knowledge to make sure you get the most out of your stations.
Of the many reasons to trust LilyPad EV with your commercial EV charging needs, our experience stands above the rest. The broad knowledge we’ve gained since forming in 2009 just can’t be beat. We’ve been here since the beginning of the EV market and are 100% focused on EV charging. We provide smart turnkey solutions to meet your EV charging needs, no matter the size of your project.
We have installed more than 4000 charging spots in 40 states and 341 cities, helping more than 34,000 drivers with their charging needs. We’ve seen it all when it comes to installing charging stations, and our experience helps us successfully deploy your charging stations in the most cost effective and timely manner, ensuring your project goals are met.
If you want a trusted advisor to navigate the EV charging world, LilyPad EV is the right choice because of our dedication to customer satisfaction. We are committed to putting our customers’ interests first. The need for EV charging infrastructure is only going to grow over the coming years, and LilyPad EV can help you invest in your future.
Contact us today to find out more about how LilyPad EV can help you take full advantage of EV charging station incentives and ensure the best ROI on your units.