In the rapidly evolving landscape of electric vehicle (EV) charging, property managers are confronted with the crucial challenge of developing sustainable and profitable business models. The uncertainty surrounding the return on investment (ROI) in EV charging infrastructure often hampers the expansion of charging networks, which in turn creates inconveniences for residents. However, innovative solutions are emerging, reshaping the way property managers approach this challenge.
The growth of EVs has introduced new opportunities for property managers. Yet, the predictability of ROI in the EV charging sector remains a significant challenge, making it difficult for property managers to commit to maintaining or expanding their EV charging facilities. This uncertainty is primarily due to two factors:
.1 Managers cannot simply install EV chargers and expect consistent use. Residents may have access to alternative charging options, such as at their workplace, or they might find cheaper alternatives elsewhere, abandoning the property's chargers and reducing its revenues. The presence of EV chargers doesn't guarantee their use by residents, as charging cannot be mandated.
.2 Unlike simpler amenities, EV chargers require constant maintenance and upkeep, which adds significant costs and complicates their management. These factors deter usage and further challenge the viability of EV charging as a profitable service.
Property managers find themselves in a vicious cycle, struggling to make EV charging a viable amenity, with every step forward seemingly offset by setbacks.
Through extensive research with hundreds of property and asset managers who have been successful in managing and expanding EV charging infrastructure, a transformative approach has been identified. The most effective business model involves offering EV charging spaces as premium parking at a flat rate, with an additional charge for usage on top of the premium parking fee.
This model offers two main benefits:
- By charging a flat rate for premium parking spaces, property managers secure a steady and predictable source of income, regardless of whether the resident uses the EV charging infrastructure. Rates can vary from $50 to $150 per month, depending on the property's location and the type of residents. Just as properties often have special rates for amenities like private garages or spaces closer to the elevator, residents are willing to pay extra for the convenience of a private charger at their parking space.
- An additional fee for power usage, collected through the EV charging platform, allows for earnings based on actual consumption. This adds a layer of fairness and efficiency. Without usage-based billing, there's a risk of residents exploiting the system or feeling unjustly charged compared to their neighbors. Usage-based billing ensures fairness across the board.
This model is particularly viable for private parking spaces, as shared chargers in visitor spaces or common areas cannot be monetized in the same way. Residents often resist paying a flat rate for shared EV charging. Like the transition from shared laundry machines to in-unit appliances, residents prefer the convenience of a private charger available at all times.
EV charging platforms, like Plugzio, that facilitate access monetization play a crucial role in this ecosystem. Plugzio simplifies the collection of the flat monthly fee and ensure fairness in usage billing.
For EV owners, the value of having a private, home-based charger cannot be overstated. This model offers convenience and peace of mind, with the assurance of access to personal charging without the limitations found in public or shared options. Moreover, it ensures equitable cost distribution by charging only for actual usage.
Adopting this innovative business model enables property managers to secure a predictable and fair revenue stream while providing EV owners with convenient, reliable, and equitable charging solutions. This approach not only enhances property value but also aligns with the increasing demand for sustainable and user-friendly EV charging facilities.
In the journey toward a greener future, property managers play a pivotal role. With the right strategies, they can lead the charge in promoting EV adoption while ensuring their financial sustainability.