How Adding an EV Charger Can Make You Money?
For some property owners, joining the electrification movement through EV charger installation is a way to attract stellar tenants or get a higher return on a flip. For others, EV home charging is the appropriate step to combat climate change by creating access to renewable energies. Others find that an EV charger is an actually profitable addition to their investment property.
The good news is that your desire to provide electric vehicle charging stations to your multifamily or rental properties can stem from any or all of these motives. There is no reason that you cannot be environmentally altruistic and turn a profit at the same time.
Read on to learn more about how to profit by adding an EV charger to your multifamily or rental property.
How Much Does It Cost to Add an EV Charger to Your Property?
The exact cost of enhancing your rental property with an EV charger depends on several factors. The first thing to consider is whether your electrical grid can handle the needs of an electric car home charger.
Even those who only plan on using the Level 1 charger that came with their EVs need a dedicated 110-v outlet. Charging an EV at home with an EV charging station also requires a dedicated 220-v outlet. That is, of course, if your electrical panel can handle the draw of an EV home charger. Many homes have outdated 100-amp electrical panels that need to be upgraded before your electric vehicle charger installation can occur.
The other thing to consider is what kind of EV charger you want to install. The most popular option is a Level 2 home charger. The cost of installing a Level 2 charging station will depend on where it will be located if your utility company requires an additional, dedicated meter, and what kind of property you have. Larger commercial properties will generally have higher costs than small residential properties.
The best way to get an idea of what an EV charger would cost at your property in Gilroy, CA, and the Santa Clara Valley is to call Watson’s Charging Stations & Electric. Not only can we evaluate the entirety of your electrical needs, but we also provide complimentary consultations, so you are not caught off guard.
Offset the Cost of your EV Charger
If you are considering adding an EV charger to your rental property, you do not have to bare the financial brunt alone. You can find a variety of local programs to help cover the costs of eco-friendly initiatives. Over 140 EV incentives in California could apply to your green upgrades.
The federal government is one of the most significant sources of financial help for adding an EV charger. The recently signed Inflation Reduction Act (IRA) provides many rebates for making eco-friendly upgrades to your home or business.
For example, here are some of the most significant tax rebates that are available under the IRA:
Up to $1,750 for a heat pump water heater
Up to $8,000 for a heating/cooling heat pump
Up to $840 for an electric stove or cooktop
Up to $840 for a heat pump clothes dryer
Up to $4,000 for a new electric pale or smart panel
Up to $1,600 for upgraded insulation
Up to $2,500 for updated electrical wiring
The most noteworthy part of the Inflation Reduction Act for property owners is an incentive to add EV chargers. The IRA allows for a credit of up to 30% of the equipment and installation costs associated with adding an electric car charging station, up to $1,000 for residential installation, and up to $30,000 for commercial installation. When combined with programs offered by local utility companies and state agencies, you could offset the entire cost of installing an EV charger.
Profiting Off of EV Chargers
An electric vehicle charging station is not just a modern amenity that will attract new tenants and bring in a better return on investment. It also creates the opportunity for an additional source of revenue for your property.
There are several pricing models you can explore:
Factor the Cost into the Rent
Increasing rent is an easy way to help offset the cost of installation and maintenance fees. On average, rent is already increasing by 8% per year in over half of the country. That means you could factor additional costs into your rent and still maintain a competitive and attractive price.
Charge a Subscription Fee
While California easily has the highest number of EV adopters, with 42% of registered EVs in the country, not every tenant will want to pay for an EV charger they do not intend to use. Landlords can offer a subscription-based model where users pay a flat fee to access the charging station. Subscriptions can come at different levels to accommodate different charging and needs.
Use an Hourly Model
If you own a commercial property with a paid parking infrastructure, an hourly rate would be a straightforward transition. A user could use a trackable scan card, like what is used to access various amenities on the property, to scan in and out of the EV charging area. They would then be charged for the time they were there.
Unlock Other Forms of Profit
While billing tenants to use your EV chargers will generate revenue for your property, joining the electrification movement will reap creator value in other ways. For example, an EV charger will help your rental unit stand out to potential renters. You can also showcase your company/property as an environmental leader. Finally, many cities require EV charging sites to be part of new construction, and adding charging stations now will help you prepare for future demands.
Learn More About Adding an EV Charger to Your Property
At Watson’s Charging Stations & Electric, we take the stress out of finding the right team of licensed electricians for your electric project. We have been the premier leader of electrification efforts in Gilroy, CA, and the Santa Clara Valley for years. Whether you are looking to add convenience to your home or business or for a way to generate a little more income on your rental property, give us a call to schedule a free consultation today.