If you have been thinking about how best to incorporate electric vehicle charging infrastructure in your parking lots, you could not have picked a better time. The 2020s are going to be a major decade for growth in the EV market, continuing and even expanding the explosive growth of the 2010s.
Let’s take a closer look at the EV charging incentives to expect as we move into the 2020s.
What Incentives Are Currently Available?
There are hundreds of direct EV charging rebates and other tangible financial incentives available across the country, including cash rebates on equipment installation, sales tax exemptions, reduced government regulatory oversight, and much more.
However, most of these incentives are offered by state or local governments, or by specific power companies. This patchwork system makes it a lot more complicated to go looking on your own to find out which incentives are available to you at your specific location. It also means that some places have better incentives than others.
The Department of Energy has a fairly comprehensive list of EV charging rebates and other incentives. It’s a good place to start, but it isn’t particularly user-friendly. At EV Connect, we are more than happy to supply you with this information ourselves, tailored to your particular location, so that you don’t have to go fishing for it.
Why You Should Be Installing EV Charging Infrastructure Right Now
In addition to the direct EV charging rebates that are available, there are many indirect EV charging incentives to think about. The most important ones are:
- Generating additional revenue from your existing parking lots and garages by supplying charging service to EV drivers, including customers, tenants, and members of the general public;
- Force-multiplying this revenue potential by doing your part to help regional EV charging infrastructure reach critical mass, so that more motorists feel confident in purchasing EVs;
- Transitioning your business or agency’s own fleets to electric, realizing significant long-term savings in fuel and engine maintenance;
- Providing complimentary or reduced-cost EV charging service to your employees and clients as an incentive to attract them to your organization;
- Getting ahead of the possibility of future governmental EV charging infrastructure requirements, all while taking advantage of today’s plentiful EV charging rebates and other financial incentives.
There are two main reasons that now, in particular, is the right time to be building infrastructure:
Electric Vehicles Are Rapidly Gaining Market Share
Throughout the 2010s, EVs have been steadily increasing their market share, particularly in the major West Coast cities, New York City, and Atlanta. The factors driving this trend include:
- Lower EV purchase costs and higher EV operating ranges
- More EV charging infrastructure coming online
- High gasoline prices on the West Coast
- Concern about the use of traditional fuels in the face of climate change
- A desire for clean air
- A sense that EVs are the vehicles of the future
- The availability of incentives like EV charging rebates and purchase rebates
We are in the rapid growth phase of the EV industry maturation cycle, with each year seeing new sales records for EVs even as total vehicle sales have stagnated. Total market share is still low: among sales of new vehicles, EV sales are in the single digits, ranging from a high of roughly 8 percent in California down to well below 1 percent in isolated rural areas. The growth rates are astronomical, however, rising from sales in the low tens of thousands at the beginning of the decade to sales approaching 250,000 in 2019—a growth rate of about 1500%. This will continue into the 2020s and 2030s, which helps make the case that EV charging infrastructure is a dependable investment.
By building charging infrastructure now, not only can you take advantage of existing EV charging rebates and other EV charging incentives, but you can do so while the market is at this sweet spot in its growth cycle: Growth in demand is both extremely high but also far enough along to assure ready-made demand in most metropolitan regions (including suburban zones).
Charging Infrastructure Availability Is Now the Bottleneck in EV Growth
The other main reason to build EV charging infrastructure immediately is that there is a clear market for it: As EV purchase costs come down and operating ranges rise into the hundreds of miles, more and more EVs are coming onto the roads, but charging infrastructure has not kept pace. This means the new limiting factor on growth is the availability of EV charging infrastructure itself, which is why so many state and local entities are pushing their own EV charging rebates.
EV charging station units have increased by a factor of 40 in the last decade (from roughly 500 to roughly 20,000), but, with over 1 million EVs on the roads in America, this isn’t nearly enough. Some of this infrastructure is Tesla’s proprietary chargers, which means there is an especially strong need for infrastructure serving the general EV driving public. Furthermore, the existing charging infrastructure is concentrated in a handful of metropolitan areas, and even in these areas there is not enough infrastructure in place to support state governments’ ambitious goals for getting more EVs on the road.
This means there are enormous opportunities available to businesses and municipalities, not only in the urban hotbeds of existing EV sales growth, but in other cities where EVs haven’t caught on yet, and in less urbanized areas as well—which have been almost entirely neglected thus far. Many of these areas are making strong efforts to incentivize local EV adoption, so, no matter where you are, don’t rule out the possibility of finding good EV charging rebates and other EV charging incentives.
How Can EV Connect Help You?
EVs are still in the process of going mainstream, but we are going to cross that threshold early in the 2020s, and when that happens there will suddenly be a tremendous rush to build new charging infrastructure. By getting started now, and taking advantage of the generous EV charging rebates available, you will have a head start on monetizing this transformation.
EV Connect provides end-to-end EV charging solutions to meet your needs for installing, managing, and monetizing EV charging units in your parking lots and garages. We also provide cloud services to help you develop:
- Your own private label versions of EV Connect solutions
- Integrated EV charging network roaming for your EV drivers
- Custom EV charging solutions, tailored to your organization’s specific needs
To learn more about EV charging rebates and get started on installing charging infrastructure at your parking facilities, contact EV Connect for a free initial consultation to get started!