How to start an eV charging business?
The surge in electric vehicle sales is encouraging, with analysts predicting that by 2028, the industry will be worth more than $350 billion. As consumers increasingly adopt electric vehicle options, they will need to use EV chargers more often.
But we still have a long way to go before charging stations become as convenient as gas stations. Fortunately, savvy businesspeople around the world want to help. They want to know how to start an electric vehicle charging station business in increasing numbers.
The EV charging business is driving a similar boom in the electric vehicle charging market, which is expected to reach nearly $120 billion by 2028. By offering EV charging services, you’re entering a fast-growing market while helping to transition to a greener future.
Funding Your EV charging for business
When exploring how to start an EV charging station business, grants stand out as an attractive entry point. It’s crucial to carefully consider each grant, noting hard deadlines, explicit program goals, desired outcomes, and guidance on how the funds can be utilized.
President Biden’s Bipartisan Infrastructure Law:
(1) Allocates billions in federal funding for infrastructure for electric and hydrogen-powered vehicles.
(2) Grants offered by the US Department of Transportation can provide a minimum of $500,000 in funding.
Note: Funding must be directed towards rural communities with less than 10,000 people.
(3) These areas likely have minimal competition, offering you an early foothold in expanding markets.
Volkswagen’s Diesel Emissions Environmental Mitigation Trust:
- Originated from the company’s emissions scandal as an effort to undo some of the damage caused.
- The trust creates grant opportunities for projects encouraging the adoption of sustainable transportation, with a portion dedicated to developing EV charging infrastructure in the US.
- The National Association of State Energy Officials (NASEO) provides general information about grant opportunities, but applicants need to check their state’s website for specific requirements, as funding is allocated at the state level.
State-Level Funding:
- California’s Clean Transportation Program: Offers a mix of grants, contracts, and rebates for EV charging infrastructure, among other sustainable transportation solutions.
- New York’s ChargeNY initiative: Targets EV charging specifically.
- Charge Ahead Colorado: Provides grants for the installation of Level 2 and Level 3 fast charging stations in public and private locations.
- Be sure to check for funding opportunities in your state.
Canada’s Zero Emission Vehicle Infrastructure Program (ZEVIP):
- This $680 million program has allocated funding for EV chargers across the country, but competition is fierce.
- To be eligible, your proposal must include at least one charger of 200 kW and above, two fast chargers of 50 kW and above, or 20 chargers of all charging levels.
- Visit our ZEVIP resources page for more information.
Step1: Identify your EV charging business models and start with one vertical
Before investing in the hardware and software required to resell EV charging solutions or establish your own charging network, it’s crucial to first define a business model that ensures long-term profitability.
It’s essential to determine from the start how your business will make money. Will you own and manage EV charging stations, charging drivers by the kWh, similar to how gas stations charge per gallon? Or will you offer comprehensive services to local businesses looking to run their own charging stations? Both options are valid, but the right choice for you will depend on where you can install charging stations and which partners you’ll collaborate with.
- Turnkey installers don’t own any chargers, but will bring hardware, software, installation, and permitting expertise directly to businesses so they don’t have to set an EV charger up themselves.
- Charging networks operate similarly to a standard gas station chain (and may even be one trying to break into the EV charging industry). Networks own and operate their own chargers, and try to gain as much density within a region as possible to serve their customers.
- Service providers operate similarly to installers—many are often the same organization—but offer services beyond the initial sale and installation. For example, many service providers offer ongoing maintenance, offer financing programs, or even run the ongoing operation of charging stations for their clients.
- Consultants who guide businesses in selecting the right chargers and software, as well as determining the optimal number of units to install. Similar to installers, consultants don’t own the chargers, but they also aren’t involved in the installation process or in reselling hardware or software.
After defining your business structure, it’s wise to concentrate on a single vertical market at the start. This focused approach will allow you to fine-tune your operations, reduce costs, and optimize profitability. Here are some potential partnerships to explore when opening your first EV charging locations:
- Commercial real estate buildings for shoppers, office workers, or event-goers.
- Apartment buildings, condos, stratas, or other multi-family housing units.
- Hotels and resorts for guest use.
- Restaurants or businesses in smaller cities to aid travelers between destinations.
- Retail locations, like grocery stores.
Regardless of the option you choose, the first 100 days in your EV charger business will be a learning curve. During this period, you’ll gather important data, such as energy consumption patterns, peak usage times, costs related to high-demand charging, and your overall operational expenses. That’s why it’s essential to focus on just one vertical at first—this will allow you to refine your approach and grow within the framework of your business model. With time, you can expand into other business opportunities or locations.
Once you’ve chosen your business model and have a clear plan for implementation, the next step is to start looking into the EV software and hardware that will best meet your needs.
Step 2: Selecting the Right Software for Your EV Network
Once you’ve determined where to install your charging stations, it’s time to choose the Charging Station Management System (CSMS) to recommend to your customers, resell, or use to operate your own network. You might also hear a CSMS referred to as “CMS” (Charger Management Software), a “back-end” or “back-office,” or even an “OCPP platform.”
- Compatibility with Charging Hardware:
The software you select will dictate which charging hardware you can support, as some platforms offer limited compatibility with certain manufacturers.
- Driver Interface and Access Control:
Your chosen software will also determine how drivers interact with your network and whether you can restrict chargers to registered users or open the station to the public.
- Hardware-Agnostic Solutions:
（1）For maximum flexibility, look for a hardware-agnostic solution like RUIHUA, meaning owners can set it up to work with any hardware solution and use it as a white-label offering under their own brand.
（2）The ability to work with various styles of charging hardware may not be as crucial in your first 100 days but will make it much easier to expand into new areas once you’ve laid a solid foundation for your business.
- Security and Compliance:
Whatever software solution you choose should ensure grid access and payment information are secure and PCI-compliant.
- Prioritizing Software Selection:
（1）While it’s generally a better idea to lock in your software solution first, it may not be feasible for your situation.
（2）If you need to pick out the hardware first, RUIHUA would be happy to help find the right fit for your business needs. Our hardware expertise has provided us with unique insights and valuable partnerships with several OEMs, and we can provide an introduction to get you started.
- RUIHUA’s End-to-End EV Infrastructure Solution:
Whether you’re looking to learn more about how our end-to-end EV infrastructure solution can get your charging network set up quickly or simply need to get your foot in the door with a hardware manufacturer, get in touch with RUIHUA and we’ll point you in the right direction.
Step 3: Selecting Compatible Hardware to Build Core Competitiveness
Having clarified your business positioning and chosen the software to run your network, the next critical step is to select the appropriate hardware to support the initial deployment of your electric vehicle (EV) charging network.
If you opt for a hardware-agnostic Charging Station Management System (CSMS) like RUIHUA, you will be able to choose from a variety of manufacturers and hardware types that adhere to the Open Charge Point Protocol (OCPP). At this point, it’s about selecting the hardware that aligns with your business model and budget.
During the selection process, consider the characteristics of the three charging levels, which determine the charging speed and electric output of the station:
- Level 1 Chargers: Suitable for home use, adding about 5 miles of range per hour of charging, ideal for overnight charging.
- Level 2 Chargers: Applicable to both homes and commercial buildings, requiring additional equipment to handle higher voltage levels, providing up to 20 miles of range per hour of charging.
- Level 3 Chargers (DC Fast Chargers): Capable of providing 40 to 200 miles or more of range in just ten minutes of charging, suitable for busy highways and major thoroughfares.
In China, consider partnering with OCPP-compatible hardware suppliers such as ABB, Delixi Electric, Emerson, EVBox, Siemens, Wallbox, and Zerova.
As your business expands into new areas, you may want to consider adding more models or hardware manufacturers to your network. However, starting with a single manufacturer will help secure better rates from your hardware partner and keep maintenance and business needs focused during your initial days in the market.
Strategic Advice:
When selecting hardware, consider the durability, energy efficiency, and user-friendliness of the devices, as these factors directly impact user experience and operating costs.
Evaluate the after-sales service and technical support of different manufacturers; good service can reduce future maintenance challenges.
Consider the hardware’s upgrade path to ensure seamless integration of new technologies to adapt to market changes.
By carefully selecting the hardware, you can lay a solid foundation for your EV charging network and gain a competitive edge in the future market.
Maintenance considerations for an electric vehicle charging station business
Managing a successful electric vehicle charging station means keeping every aspect of the operation in top shape. This not only satisfies customers but also ensures steady revenue flow. As advanced systems, Level 2 and DC fast chargers contain several intricate components that will need careful maintenance.
Power Management:
Charging station management systems (CSMS) should be utilized to allocate a safe and efficient load for each charger. The system should provide protective measures in case of connection disruptions and maintain maximum charging set points in non-volatile memory. A software-driven power management system will often outperform the local load management functions provided by the hardware itself.
Some systems, including RUIHUA, can detect when a vehicle’s battery is full and dynamically reallocate power to other chargers.
If your Level 2 chargers take several hours to fully charge or your DC fast chargers take over an hour, there may be a voltage issue that requires repair or battery replacement.
Hardware Maintenance:
The hardware components of an EV charger include the charging box, batteries, switches, converters, cables, and connectors. Regular inspections should be conducted to check for external damage and wear, with additional checks after inclement weather. It is crucial to remove dust and other debris from connectors and cables to ensure they function properly over time
Network Connection:
If charging stations in your network disappear from your CSMS, it definitely indicates that something needs to be fixed. It could be a hardware issue within the charging station itself that requires maintenance or a simple connectivity problem. Choosing a CSMS provider that offers customer support can expedite troubleshooting and prevent prolonged downtime.
Payment Processing:
EV charging stations rely on payment processing infrastructure such as RFID readers and credit card scanners to collect payments from customers. Customers typically make transactions through mobile devices (in-app or online) or external point-of-sale interfaces. Your CSMS should provide complete and accurate receipt information to maintain compliance with regulations like the Credit Transaction and Emissions Performance (CTEP) standards.
Need-to-know EV charging station regulations
Several standards have been propagated around EV charging, handed down by hardware manufacturers, software designers, car manufacturers, and national governments. Here are two of the most important ones in the United States.
1. National Electric Vehicle Infrastructure (NEVI):
With $5 billion in federal funding available for EV charging systems, the Department of Transportation (DoT) has issued guidelines for applicants of this funding. The NEVI standard, effective as of March 30, 2023, is designed to promote an interconnected EV charging infrastructure along federal highways. Any system using Title 23 federal funds must meet this standard, regardless of its location. NEVI covers eligible charger types, payment processing, cybersecurity, data privacy, and labor rules.
2. National Electric Code (NEC) Article 625:
- This article sets the standards for the installation and maintenance of EV charging equipment in the U.S. It includes guidelines on where to place the equipment, the materials to be used, and other safety considerations.
- EV charging systems can be installed both indoors and outdoors, provided that the physical infrastructure fits and the charging cables can reach the EV charging ports.
- For indoor installations, EV chargers must be stored 18 inches above the ground, while for outdoor installations, they must be 24 inches above the ground.
- Cables used in EV charging systems must be appropriate for their location and should carry labels indicating NEC approval, such as EV, EVJ, EVE, EVJE, EVT, or EVJT. Cable management systems are required for cables longer than 25 feet, but it is standard practice to manage shorter lines as well.
For more on EV charging station standards, read EV Charger Guide.
EV connector types
When discussing the operation and maintenance of electric vehicle charging stations, it is important to mention the variety of charging connectors. These connectors are an integral part of the EV ecosystem and have a direct impact on the ease and compatibility of the charging process. Different types of EV charging connectors support different charging speeds and voltage requirements, which are critical to the charging station design and user experience.
For an in-depth look at various charging connector specifications, compatibility, and how they affect your charging station selection and operation, read on for our article on EV Charging Connector Types.
Different EV Charging Plug Types: A Complete Guide
There, we’ll explore in detail the features of different connectors, including but not limited to the alternating current (AC) and direct current (DC) charging ports, and how they fit into different charging scenarios and needs.
Critical EV charging standards
As the EV industry matures, more and more manufacturers are adhering to standards that maintain high levels of quality and consistency for consumers. Standards now exist that govern operation, installation, and safety.
- SAE International standards, devised by an industry group of mobility professionals, establish hardware and software guidelines.
- Open Charge Point Protocol (OCPP) is a universal communications standard that allows the hardware and software of different providers to work together.
- Open Charge Point Interface (OCPI) is an automated roaming protocol that lets charging stations serve drivers outside their network.
- The Canadian Electricity and Gas Inspection Act provisions for safety requirements and EV charging outputs.
- ISO 15118 sets a standard for digital communications between an EV and the charging station.
Installation and permitting standards
- The Americans with Disabilities Act (ADA) will apply to your electric vehicle charging station business, so be sure to review it during planning to ensure disabled customers can charge with ease. The Accessible Canada Act applies many similar requirements.
- The Alternative Fuels Data Center maintains a list of installation requirements from the US government, and its permit template provides a solid framework for what to expect.
Safety and security
- SOC 2 compliance helps ensure a high standard of information security.
- PCI DSS compliance safeguards customer payment info and keeps your business in good standing with payment card companies.
Supercharge Your EV Charging Station Business
Venturing into electric vehicle charging allows you to contribute to a sustainable future while boosting your business’s profitability. By investing in the right tools from the start, you can achieve both. That’s why we at RUIHUA have designed our CSMS with comprehensive features and adaptability. Whatever hardware you’re using, we’re here to support you. Contact us today to find out more.
