Like mushrooms, commercial electric vehicle (EV) charging stations are popping up in parking lots everywhere: AMC theaters, Macy’s, Costco, Target, gas stations, grocery stores, and more.
In fact, as Teslas and similar electric cars hit the road, there are now more than 64,000 public EV charging stations across the U.S. as of December 2023. In particular, fast commercial EV charging station installations have grown by 70% in three years.
This surge of interest is necessary as many car manufacturers are committing massive resources to develop their electric vehicle offerings. it’s also great news for both commercial properties and solar installers. Businesses can benefit from many incentives and rebates for commercial EV charging stations. And as Greenlancer President Patrick McCabe has noted, many commercial EV charging stations rely on solar energy for clean electricity – so solar installers are perfectly positioned to install them alongside their PV systems.
But make no mistake – commercial EV charging station installation is still different from installing solar panels. Like any venture, the first step towards success here requires both the client and installer to gain a working knowledge of its options, commercial EV charging station costs, charger incentives, and challenges.
That’s why we created this guide to the fundamentals of installing electric car charging stations.
Ideal Locations for Commercial EV Charging Station Installations
As electric vehicles approach 14% of the new car market in 2022, installing commercial EV charging stations attracts many businesses who want to increase their property value, employee satisfaction, and customer count.
Ideal commercial prospects for EV charging stations include:
Workplaces
Since people park at work more often than anywhere else except home, offering a charging station helps attract EV drivers as employees. In fact, according to the U.S. Department of Energy’s recent survey, 80% of employers with an EV charging station say that it has helped them attract and retain more talent. So, commercial EV stations improve both companies’ sustainability and their business targets.
Business Districts And Shopping Centers
When Americans aren’t at home or at work, they’re often out shopping and dining, including EV owners who want convenient charging options.
Public parking lots, business districts, shopping centers, restaurants, and malls can benefit from commercial EV charging station installation, drawing in more customers. As EV owners charge their vehicles, they may even spend more time shopping, leading to increased sales for businesses.
Service Locations
Public buildings, hospitals, and universities aiming to meet sustainability goals can earn  LEED credits through commercial EV charging station installation. These sites, typically home to large workforces, can also enhance their appeal to top talent by offering this eco-friendly charging option.
Multifamily Housing
Not all electric car owners live in single-family homes – or want to. Without an EV charging station, however, apartment buildings and condominiums fail to meet their charging needs, leading potential residents to look elsewhere.
By installing commercial EV charging stations, multifamily housing properties can overcome this obstacle, boosting property value and attracting electric vehicle owners.
As new state and city regulations drive the adoption of commercial EV charging station installation, cities like Miami, Seattle, and Chicago now require certain commercial properties to provide EV charging. This trend creates growing opportunities for installers in these areas.
What Kind Of Commercial EV Charging Station Do Clients Need?
EV charger options vary by charging speed.
Level I Charging Stations
The most affordable and cost-effective option, Level I charging stations are also the slowest, adding just 3 – 5 miles of range per hour. While this charging speed may be too slow for public stations, Level I chargers can be sufficient for workplaces where employees can leave their vehicles charging for up to 8 hours.
Level II EV Charging Stations
Level II chargers are the standard for most commercial EV charging station installations. These stations charge vehicles 4 – 5 times faster than Level I, providing 12 – 40 miles of range per hour of charging. They typically operate on 208/240V with 30-amp electricity.
Level III Charging Stations - DC Fast Chargers
DC Fast Chargers (DCFC) are the fastest EV charging option, providing 80 – 400+ miles of range per hour. However, they are the most expensive and may be incompatible with some electric vehicles, making them less common than Level II chargers. Typically, high-volume commercial EV charging station installations, such as those at car dealerships, commercial charging stations, and rest stops, benefit most from the rapid charging capabilities.
The Tesla Supercharger network dominates the U.S. DC fast charging landscape. Together with the next three largest DC fast charging networks—Electrify America, EVgo, and ChargePoint—these top four networks account for the vast majority of DC fast chargers across the country.
Commercial EV Charging Station Incentives And Rebates
If you or your clients are interested in an EV charging station but balk at the initial cost (from $1,000 – $10,000 per station), your area’s incentives and rebates can help.
Federal Tax Credit for Commercial EV Chargers
There is a 30% federal tax credit for installing commercial electric car charging stations. The maximum credit is $100,000 per unit, and both the equipment and installation costs are eligible.
National Electric Vehicle Infrastructure (NEVI) Formula Program
Through the Federal Highway Administration's (FHWA) NEVI Formula Program, states can receive funding from the U.S. Department of Transportation to support the strategic deployment of public EV charging stations. This initiative aims to create an interconnected network, enhancing data collection, access, and reliability. Eligible projects can receive funding for up to 80% of their costs, making commercial EV charging station installation more accessible for businesses and municipalities.
However, President Donald Trump's recent executive order has significant implications for the National Electric Vehicle Infrastructure (NEVI) program. The order mandates a 90-day suspension of funding disbursements from the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), during which federal agencies are to review these programs to ensure alignment with the administration's energy policies. This recent suspension can have an impact on how much a commercial EV charging station costs.
How Much Does a Commercial EV Charging Station Cost?
How much a commercial EV charging station costs depends on the type of charger, available infrastructure, EV charger installation expenses, and more.
Level 2 Chargers:
Cost:Â Ranges from $600 to $12,700 per unit, depending on features and installation requirements.
Power Output:Â 3.3 kW to 19.2 kW.
Installation Considerations:Â Commonly used in commercial and residential settings, these chargers may require electrical upgrades, such as higher amperage circuits or additional electrical work.
DC Fast Chargers (Level 3):
Cost:Â Can range between $30,000 to $150,000 per unit, including installation.
Power Output:Â 50 kW to 350 kW.
Installation Considerations:Â These chargers require significant electrical infrastructure and are typically installed in high-traffic public locations like highway rest stops, shopping centers, and fleet locations.
How Much Does it Cost to Install a Commercial EV Charging Station?
The cost of commercial EV charging station installation can vary widely based on several factors, including the type of charger, the location, and the complexity of the installation. On average, installation costs for a Level 2 charger can range from $2,000 to $10,000 per unit, while DC fast chargers (Level 3) can cost upwards of $50,000, including the necessary electrical upgrades.
Key factors influencing installation costs include:
Electrical Infrastructure: Upgrading the building's electrical system to support higher amperage, which may require new panels, transformers, or dedicated circuits.
Location: Costs can rise if the installation site is challenging to access or requires extensive electrical work or trenching.
Permitting and Inspection: Local permits, inspections, and any zoning requirements can also add to the cost.
Incentives and Tax Credits for Commercial EV Charging Station Installations
Businesses installing EV charging stations may be eligible for federal tax credits, lowering total commercial EV charging station installation costs. As of January 1, 2023, the Alternative Fuel Vehicle Refueling Property Credit offers a 6% credit with a maximum of $100,000 per charging port. Additionally, businesses meeting prevailing wage and apprenticeship requirements can qualify for a 30% credit with the same $100,000 limit.
State and local incentives may also be available, further reducing installation costs. For instance, some states offer rebates or additional tax credits for commercial EV charging station installation.
However, the federal EV tax credit for purchasing electric vehicles is separate from the credits available for charging station installations. The federal EV tax credit can be up to $7,500 for new electric vehicles purchased between 2023 and 2032.
Given the evolving nature of incentives and regulations, it's advisable to consult with a tax professional or the IRS for the most current information. Thus, while commercial EV charging station costs can be significant, available incentives can substantially offset these costs, making it a viable option for many businesses.
Infrastructure for Commercial EV Charging Stations
The first steps towards a new EV station are often the most expensive. Each site presents different challenges and requires an individually tailored approach, which impacts the commercial EV charging station installation.
Prepping a commercial EV charger site involves several expenses, such as:
Electric infrastructure to power the charging stations
Wire conduits and connectors
Pouring new concrete
Parking lot restriping
Signs guiding visitors to the EV station
An EV charging system quote should note the prices of all activities and materials needed to prepare the location for installation.
Commercial EV Charging Station Installation
Once all necessary changes are made to the site, it’s time to get the chargers there and have them working. Like solar installations, the EV charging station installation cost varies by:
Electrical service
Number of chargers
Location
Material quantity and type
Labor
Required permits
Associated taxes
Applicable state and local initiatives
GreenLancer specializes in EV charging station permitting and engineering services. We offer numerous services for EV charging station contractors, including permit-ready plan sets, interconnection applications, engineering reviews, and PE stamps. To get started shopping for commercial EV charging station design and engineering services, create a GreenLancer account. Our services are ideal for contractors working on existing EV charging station installation projects.
Networked EV Charging Stations
You'll probably need Wi-Fi-connected chargers for electric car charging station incentives. Network connectivity allows the owners to:
Limit access to certain people if necessary (such as the residents of an apartment building)
Charge users for their electricity consumption
Monitor the station’s performance
Create usage reports
However, a station with a charging network does cost more than a non-networked one. While charging station materials, infrastructure, and installation can add up, a good contractor can often minimize expenses. Some ways include using existing electrical infrastructure (if it’s available), applying for all relevant rebates and tax breaks, and partnering with adjacent businesses to share station responsibilities.
Can Commercial EV Charging Stations Be Used By the General Public?
Commercial charging stations are typically available for public use. They are often located at retail centers, parking lots, hotels, or along major highways to provide convenient charging access for electric vehicle owners. Most commercial charging stations offer various payment options and configurations. These can include pay-per-use with a credit or debit card, access cards or key fobs, mobile apps, or subscription-based plans. Some charging networks may also offer a membership program for discounted rates.
Commercial EV Charging Station Connector Compatibility
Commercial charging stations are designed to be accessible and compatible with various electric vehicle models. They are typically equipped with standardized connectors that allow different vehicles to charge at the same station. Here's an expanded explanation of the different connectors commonly used:
Type 1 (J1772) Connector: The Type 1 connector, also known as the J1772 connector, is widely used for Level 2 charging. It features a smaller, rectangular connector with five or seven pins, depending on the vehicle's charging capabilities. This connector is common among electric vehicles from North American and Japanese manufacturers.
Type 2 (Mennekes) Connector: The Type 2 connector, also known as the Mennekes connector, is commonly used in Europe and has become the standard for Level 2 charging in many regions. It features a larger, round connector with either seven or nine pins, depending on the vehicle's charging capabilities. The Type 2 connector provides a higher level of charging power and is compatible with most European electric vehicle models.
CCS (Combined Charging System) Connector: The CCS connector combines the Type 2 connector for AC charging with an additional set of high-power DC pins for fast charging. It is characterized by the two extra DC pins below the Type 2 connector. CCS connectors can provide both Level 2 AC charging and DC fast charging, making them versatile for a wide range of electric vehicles. Many European and North American vehicle manufacturers commonly use CCS connectors.
CHAdeMO Connector: The CHAdeMO connector is primarily used for DC fast charging. It features a unique, large, round connector with multiple pins. CHAdeMO connectors are most commonly found in electric vehicle models from Japanese manufacturers such as Nissan and Mitsubishi. However, it's worth noting that some newer electric vehicles may also have dual connectors, allowing them to use both CCS and CHAdeMO charging.
Maintenance of Commercial EV Charging Stations
Maintaining a commercial EV charging station is crucial to ensure its optimal performance, reliability, and safety. Regular maintenance helps prevent malfunctions, extends the lifespan of the equipment, and provides a positive charging experience for users. Here's why maintenance is important, how it can be completed, and what it typically entails:
Importance of Commercial EV Charging Station Maintenance:
The prevalence of broken or poorly maintained electric car chargers is a critical issue that can be avoided.
Reliability: Regular maintenance helps identify and address issues before they escalate, ensuring that the charging station functions properly when needed.
Safety: Maintenance checks can detect any potential safety hazards, such as exposed wires or damaged components, to prevent accidents and ensure user safety.
User Experience: Well-maintained charging stations provide a positive experience for electric vehicle owners, encouraging repeat usage and customer satisfaction.
Cost Savings: Preventative maintenance of commercial EV charging stations can help avoid costly repairs or replacements by addressing minor issues early on.
Compliance: Some jurisdictions may have regulations or requirements regarding the maintenance of commercial charging stations to ensure safety and reliability.
Completing EV Charging Station Maintenance and Typical Tasks
Read on to learn about some of the critical tasks.
Visual Inspection: Regularly visually inspect the charging station for any physical damage, loose connections, or signs of wear and tear.
Cleaning: Keep the charging station clean from debris, dirt, and other contaminants that can affect performance.
Charger Software Updates: Stay current with software updates for the charging station to ensure compatibility and functionality.
Testing: Conduct routine testing of the charging station to verify proper operation, charging speeds, and connectivity.
Functional Checks: Test components such as the display screen or touchscreen, connectors, cables, and payment systems to ensure they work correctly.
Charger Maintenance Logs: Maintain detailed records of maintenance activities, inspections, and any issues identified for future reference.
Maintenance tasks can vary depending on the type of charging station, manufacturer recommendations, and usage patterns. It's essential to follow the specific maintenance guidelines provided by the charging station manufacturer and to use qualified professionals if any issues arise. By prioritizing regular maintenance, commercial EV charging station operators can ensure the longevity, reliability, and safety of the equipment, ultimately benefiting both the business and electric vehicle users.
Installing Commercial EV Chargers: Design & Engineering
Installing a commercial charging station requires a significant investment. But, incentives, tax credits, customer fees, increased customer attraction, and employee satisfaction often make the investment worthwhile for many sites.
As a potential installer of EV charging stations, a big obstacle is securing fast and scalable EV charging station design and engineering services.
GreenLancer has a network of certified designers, licensed engineers, and fulfillment partners ready to complete on-demand fulfillment of EV charging services quickly, such as:
Our services are ideal for professional EV charging station installation contractors working on completing projects. Submit the form below to learn more about our EV station design and engineering services.