EV Charging Basics for Property Developers
Across the United States, zero-emission initiatives continue to gain traction; ownership of electric vehicles is still growing in momentum, and so is the demand for more charging stations. Current EV infrastructure building codes require the integration of EV infrastructure into new construction projects. For property developers, this added investment provides many opportunities to stay competitive in the real estate market and become part of a sustainable future — so as not to be left behind by the quickly evolving developments in transportation electrification and their impacts on the real estate industry.
EV Charging Stations: A Requirement for New Property Constructions
State and local governments throughout the U.S. recognize the need to reap the economic and environmental benefits of an accelerated EV market growth by setting extensive transportation electrification goals. Early this year, the International Energy Conservation Code (IECC) — the country’s model code for establishing minimum design and construction requirements for energy efficiency — rolled out the new provisional EV infrastructure requirements for all new homes and commercial and multi-family residential buildings.
The core requirements of the 2021 IECC model code for new multifamily buildings are as follows:
Most existing buildings are not equipped with EV-ready parking spaces and EV-Capable infrastructure. Adequate numbers of and easy access to charging stations continue to be major obstacles to unhampered acceleration and nationwide expansion of the EV market for climate and Zero-Emission Vehicle (ZEV) goals.
The high demand for electric vehicles also means an increased need for more EV infrastructure. Retrofitting existing buildings has proven to be a costly, albeit a necessary and worthwhile endeavor. For new property developments, pre-installing EV infrastructure is more cost-efficient and provides an opportunity to offer better amenities and, therefore, to stand out in the highly competitive real estate market.
EV Charging Basics for Property Developers
EV Charger Types
The different EV charger types determine how long it takes to completely charge an EV and the average range it gives the vehicle per hour of charging based on the voltage input.
AC Level 1. Level 1 charging uses a standard EV charging coupler and takes the longest to charge an EV fully. The average range is only about 2 to 5 miles per hour of charging. This charger type is not ideal for EVs with larger batteries and higher power demands; it’s most suitable for workspaces and home garages where EVs are usually parked for prolonged periods. Out of the three standard charging levels, Level 1 is the least expensive option.
AC Level 2. This charger type also uses a standard EV charging coupler and requires a single-phase branch circuit that delivers an input rating of 240 volts. With a higher voltage, it's faster to charge an EV battery fully and averages about 10 to 20 miles of range per hour of charging. Level 2 charging stations are the most commonly installed charger type in commercial and residential spaces. The correct NEMA electrical enclosures are required for stations located outdoors.
DC Fast Charge. This charger type delivers the fastest complete charge, with an input rating of 480 volts and an average range of 60 to 80 miles per 20 minutes of charging. Fast Charging is the best option for parking spaces in retail and commercial locations, where EVs usually park for short periods. Separate connectors are used for DC Quick Charge, which vary depending on the vehicle manufacturer.
Why Installing EV-Capable Infrastructure During New Construction Is Better
For existing properties, both commercial and residential, retrofitting with EV infrastructure is the only option and involves higher costs. Surface parking and walls have to be demolished and then repaired. Longer conduit runs may have to be added; electric service panels will have to be upgraded. There are also the costs for plans, permits, inspections, and project management.
For new property constructions, integrating EV infrastructure is an excellent opportunity to save a lot of money. Offering state-of-the-art amenities to tenants and home buyers will also make the property more competitive by delivering a higher and more environment-friendly standard of living.
As part of the initiatives to sustain the transportation electrification momentum and drive down emissions, the federal government, most state governments, some local governments, and the utilities and private industries are encouraging the expansion of charging station infrastructure by incentivizing the purchase of electric vehicle supply equipment (EVSE). In addition, in many states, property developers can also stack their savings from incentives like electric charging infrastructure tax credits.
Guide on Tax Credits
Property developers can avail of the federal government’s tax credit for EV charger hardware and EV charger installation costs, covering 30% of the costs with a maximum $30,000 federal tax credit for commercial installs. The tax credit is retroactive and can be applied to installations made as early as 2017. However, the tax credit is not refundable; it cannot be used to increase overall tax refund.
Utilities also offer rebates to private residential and commercial customers (including retail businesses and multi-family dwellings). The incentives may vary, covering only a percentage of the total or entire hardware and installation cost.
Below is a partial list of incentive programs currently offered by various state and county authorities for commercial EV infrastructure installations.
Southern California Incentive Project. Rebates of up to $80,000 for purchasing and installing commercial chargers are offered in LA, Orange Riverside, and San Bernardino counties.
Connecticut Department of Energy and Environmental Protection. Rebates are on a percentage basis: 50% of project costs, or up to $2,000 per unit and $4,000 per site.
Charged! Sarasota County Program. Level 2 equipment installations by businesses, nonprofits, and local governments within the county can get a 25% rebate of the cost, or up to $2,000.
Charge Ahead Colorado. Grants of up to $50,000 are available to qualified projects, covering up to 80% of the cost of purchase and installation of EV charging units.
Salt River Project. In Arizona, up to 12 rebates, or as much as $500, are available to purchase and install Level 2 EVSEs by business customers.
Delaware Department of Natural Resources and Environmental Control. Commercial properties can qualify for rebates of up to 75% or as much as $2,500 for new EVSE purchases.
Maryland Energy Administration. Developers can get up to 40% or as much as $4,000 for the purchase and installation of EVSE on commercial properties.
EV Connect’s guide can help you learn more about the federal, state, and utility incentive programs for EV infrastructure available in your area.
Should You Charge EV Charging Station Consumers?
The purchase and installation of EV charging stations are an added cost to your property development. But should you try to recoup your investment by collecting payment from EV charging station consumers?
If you want to charge your consumers, you will have to invest in additional products, like an electrical metering device or one specifically designed for collecting payment using a charging station. Another option is to determine a monthly flat rate for using the charging station — this will be based on estimated monthly mileage and EV efficiency.
You can also opt to include the estimated additional cost of using the charging station to the monthly maintenance fee or rental fee. Studies have found that many renters are willing to pay more in rent when extra amenities, such as EV charging stations are available.
Given the incentives you can receive from the purchase and installation of EV infrastructure and with the growing number of people looking for more ways to live more sustainably, your additional investment will be more than worth it in the long run. Consult with an EV Connect expert to determine your best option for charging consumers.
Sources
Pacific Northwest National Laboratory - Electric Vehicle Charging for Residential and Commercial Energy Codes
U.S. Department of Energy - Alternative Fuel Infrastructure Tax Credit