EV CaaS: Is This Service Model Service Right for You?
For property owners considering installing EV charging infrastructure, cost is top of mind. A single charger is going to be a four-figure affair, at the very least. On top of that, most property owners know they’ll also have to pay for maintenance — both in terms of parts/equipment and labor costs. That’s why some EV charging companies are offering a new subscription method: Charging as a Service (CaaS).
What Is Charging as a Service?
In CaaS models, a subscriber pays a flat monthly subscription fee. In exchange, the provider handles everything: installation, hardware, and maintenance and upgrades after each contract term (five years in the case of EVConnect), all at no additional cost to the subscriber. In the case of some, like EVConnect, they also offer management software that gives you access control, real-time station monitoring, flexible pricing for drivers, charging usage reporting, and easy payment processing.
While we’re aware that many are tired of subscription models, CaaS is one of the few examples of a situation where it’s a perfect fit for the company and the consumer. Let’s explain how.
1.) Lower Initial Costs
Like we mentioned before: Installing EV charging infrastructure can be expensive, particularly for property owners adding multiple chargers. By bundling the bevy of services needed to provide EV charging to customers (including electrical infrastructure upgrades and labor costs) into a monthly subscription fee spread out over time, CaaS lowers the barrier of entry. You don’t need a large initial capital investment, allowing you to get in on the game now.
2.) Predictable Finances
Any business owner knows how important predictability is to your bottom line. Having to spend money on a costly repair can seriously impact your life. CaaS models prevent this: The cost of repairs is included in the monthly subscription fee, meaning that damage and the like will be repaired by the provider, instead of putting a dent in your finances.
3.) More Freedom, Better Reputation and Less Risk
We all know that one gas station or that one restaurant — the one with the creaky chairs and smelly soda machine that clearly doesn’t take care of its equipment. No one likes going there…even if, at the end of the day, it’s because the proprietor can’t afford repairs. By including machine maintenance in a subscription model, you don’t have to shoulder the burden of repairs and give potential customers the confidence of knowing that your station is one they can rely on. Many will also handle customer support directly, meaning that the proprietor doesn’t have to navigate a maze of customer support lines just to get their machines fixed. In the case of EVConnect, you can expect your station to be fixed in 48-72 hours.
4.) Sustainability
In a broader sense, CaaS also serves a public good. Climate change is real, and its effects are being felt every day. CaaS lowers the barrier of entry into the EV charging field, which allows for more chargers spread over the country. Given that many prospective drivers’ main reason for not buying an EV is fear of finding a place to charge, this could hasten the shift to electric vehicles, helping the planet in the short and long term. What’s more, in some states, you’ll likely be eligible for subsidies and bonuses for helping reduce carbon footprints and meeting climate goals.
5.) Ease of Upgrades
As mentioned before, EV charger installation is expensive and upgrades aren’t much cheaper. That leaves property owners worried about what happens if they invest, only for the technology to leave them behind. For some CaaS models (including EV Connect’s), technology upgrades are included in the monthly subscription fee and available at the end of each contract term, preventing you from going obsolete.
But Won’t It Be More Expensive, Overall?
This is where things get interesting. Yes: Overall, most CaaS models would be more expensive when stretched over a long enough time, but that math relies on a few assumptions.
First, your stations never require unexpected repairs or upgrades. That is a gamble that most responsible property owners know not to make. Second, it neglects labor costs. While this particular detail is more relevant for larger operations, the fact is that when you get a charger on your own, you are responsible for maintenance. This means that you’re having to regularly spend money on staff hours for them to manage the machines and keep them in working order. If your business is large enough, then the scales may quickly tip against ownership.
Likewise, even with EV management software, you’ll be left to navigate and program everything. Some providers, like EVConnect, handle the programming themselves according to your requests and requirements. Meanwhile, they provide reports on performance, sustainability, and other metrics you might need.
Your mental health is a valuable asset, and any increased financial costs may be well worth your peace of mind.
CaaS With EV Connect
CaaS is one of the few “subscription models” that’s well suited to solving a real problem. It allows property owners a low-risk, low-initial-investment way to help the planet and their business by installing EV charging infrastructure. Meanwhile, it slashes their worries by guaranteeing that they can maintain and upgrade the equipment with little hassle and next to no additional costs. EV Connect, in particular, offers one of the most thorough and clear-cut CaaS options on the market.
More than that: EV Connect is focused on ensuring ease-of-use for the customer. For property owners, time is among their most valuable assets. EV Connect listens to what you want and handles the whole process accordingly, from site inspection to installation and training. While other providers may leave you feeling like you’re back in school studying for a test, EV Connect values peace of mind. Connect with us today to learn more about our CaaS offerings!
Sources
Forbes - ‘Charging as a Service’ for Electric Vehicles Growing as a Market Offering
World Wildlife Fund - Effects of Climate Change