Why Every Property Owner Should Think About Electric Vehicle Charging Stations
Charging stations for electric vehicles (EV) are still a small novelty. We have all seen them, but they are few and far between. Experts estimate that there are fewer than 50,000 in the entire United States. In a decade we’re going to need millions. Ambitious climate goals, government initiatives and the evolving auto design of the world’s leading manufacturers require that EV charging stations become ubiquitous. In order to keep up with the rapid change in pace in the automotive industry, every property owner should think about charging stations for electric vehicles.
President has called for half of all vehicles sold in the United States to be emission-free by 2030. Today, electric vehicles only account for 2 percent of car sales. Together with the Detroit automakers and the United Automobile Workers union, President Biden issued the executive order for the American automotive industry to begin the transition to battery-electric, plug-in hybrid, or fuel cell-powered vehicles. Efforts began before Biden’s presidency and will continue afterward, driven by global automakers who are seeing a rapidly changing market. Ford will invest $ 22 billion in electric cars over the next five years. General Motors wants to drive all-electric by 2035. Volkswagen, the world’s largest automaker, expects half of its sales to be electric by 2030. Toyota has sold 15 million hybrid and electric vehicles worldwide.
These ambitions quickly become snowball. Almost 80 million cars are sold worldwide every year. In 2019, automakers sold around 17 million cars in the United States. In 2030, let’s conservatively assume that 15 million cars will be sold in America. If even a third of that is electric, we need to add around 5 million electric vehicle charging points annually to keep up. The United States currently has only 50,000. A problem of this magnitude requires that virtually every property owner across the country give serious thought to how to provide charging points for electric vehicles. With around 80 percent of charging done at home, the majority will likely be installed in private homes to charge private vehicles, but the commercial world of multi-family, retail, office, and industrial real estate will also have to adapt. Residents will need more charging stations, buyers need the additional convenience of charging in shops, office workers will have to use office parking spaces for charging and industrial companies will switch fleets to electric vehicles. A McKinsey report estimates the United States will have to invest $ 11 billion by 2030 to build 13 million charging stations, which will be needed for the country’s switch to electric vehicles.
“These new measures – coupled with investments in the President’s Build Back Better Agenda – will strengthen America’s leadership in clean cars and trucks by accelerating automotive innovation and production, strengthening the domestic automotive supply chain, and caring jobs that are well paid and Social benefits, ”the White House said in a statement.
A bipartisan group of senators is working to pass President Biden’s 2,700-page infrastructure plan worth $ 1 trillion. The bill earmarked $ 7.5 billion for charging stations for electric vehicles, with a focus on providing them along highways and connecting routes. That’s enough money for around 250,000 charging stations, less than half of what the Biden administration had hoped for. The right mix of charging stations will be crucial. Level 2 chargers use the same voltage as a typical household dryer, but it can take hours to fully charge a car. Level 3 chargers can charge an EV in less than 30 minutes, but they are significantly more expensive. Installing the right charger in the right place is critical. Level 2 chargers work well for apartment buildings or offices where residents spend long hours. Faster charging is needed at retail locations, industrial plants, bus depots, roadside stops, and other places where getting on and off efficiently is critical.
It will not be up to the federal government alone to accelerate the installation of e-charging stations. Tesla is currently the leader. On Twitter, Tesla founder Elon Musk announced that the company would enable drivers of other electric vehicles to use Tesla’s proprietary Supercharger network from the end of this year. Tesla was creating charging quotes at a breakneck pace. Tesla now operates a network of more than 25,000 superchargers at almost 2,7000 stations worldwide. About 10,000 of these stations are in North America.
“Our goal is to support the emergence of sustainable energy. It’s not about creating a walled garden and beating our competitors, which is sometimes used by some companies, “Musk said during Tesla’s latest Q2 conference call.
Musk’s highly intellectual ideas are backed up by a devilishly clever execution. Outlining the plan to reporters, Musk said drivers of other electric vehicles will be able to use Tesla’s station simply by downloading and using the Tesla app. You may not own a Tesla, but by using the Tesla app and its extensive network of charging stations, you are part of the Tesla ecosystem, making it much easier to convert to Tesla customers. Tesla may not benefit from sales of competitor electric vehicles, but Musk has figured out a way they can profit from using them. Goldman Sachs estimates Tesla could collect $ 25 billion in fees annually from non-Tesla drivers.
Tesla alone cannot close the gigantic gap in charging stations for electric vehicles. The coordination of regional and national policies with the free market will be crucial. Several entrepreneurs are mobilizing to meet the massive need for more chargers. ChargePoint’s revenue is up 24 percent and now operates 112,000 charge ports. Blink Charging has grown to around 23,000 chargers. Rival EVgo has around 800 fast charging stations. The Volkswagen subsidiary Electrictyy Americas is approaching 700 locations with the aim of doubling the number by 2025. The race for the chance is on and everyone is chasing Tesla because the path to profitability is not so clear. Tesla charging is part of the Tesla ecosystem that sells low-margin electricity in order to sell more high-margin vehicles. Profitability becomes difficult when EV charging operators act only as electricity brokers. It becomes even more difficult to compete against the utilities themselves.
The public sector forms partnerships across national borders and different levels of government, bringing together utilities and local governments. The Electric Highway Coalition formed earlier this year is reaching critical mass. With members like AVANGRID, Consolidated Edison, DTE Energy, Eversource Energy, Exelon, FirstEnergy Corp., ITC Holdings Corp. and National Grid on board, the 14-person utility committee represents 29 states and the District of Columbia and serves more than 60 million customers. The joint effort will help enable long-distance travel in electric vehicles, avoid duplication of efforts between coalition utilities, and develop methods of easily paying for electricity for drivers. Federal, state and local incentives are being introduced for electric vehicle installation. Organizations can get up to $ 30,000 in tax credit for installation. Individuals can claim $ 1,000 for home installations. Several utility companies offer grants and incentives.
All of this means that in ten years time, EV charging stations, no matter how they’re installed, will be everywhere and become one of the most common forms of PropTech in our entire built environment. If the United States comes anywhere near the ambitions of politicians and business leaders, millions of EV charging points will find their way into homes, parking garages, retail spaces, industrial fleets, and highway exits across the country. Such a monumental change means any property owner may need to consider adding support for electric vehicle charging stations.