Although the United States has long lagged other regions in electric vehicle (EV) adoption, the country is now reporting record growth. EVs represented about 8 percent of all new passenger cars sold in the United States in , up from around 5 percent in . By , this figure could rise to 53 percent.
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The United States will need about 28 million ports by to meet the demand for electricity by zero-emission passenger vehicles (Exhibit 1). Private ports are expected to increase in number from around 2.5 million to nearly 27 million, representing about 95 percent of the total.
There are two types of public charging: direct current fast charging (DCFC), which is used on highways and for fast fill-ups, and slower Level 2 (L2) charging, which is available at places such as grocery stores, malls, car dealerships, golf courses, and banks, where people may park for longer periods. L2 charging may also occur next to sidewalks or near street parking. About 150,000 L2 and DC plugs are now available across the United States, but that number is expected to increase to 1.5 million by , when they will represent about 5 percent of the total.
While public fast charging is a piece of the overall charging solution, current EV demand for electricity is still so low that profitability is challenging—and this could remain the case over the short to medium term. To help charge-point operators improve their financial picture both now and during scale up, we examined the EV market, including the ongoing shifts in ownership patterns and charging demand. We then analyzed the factors that influence charging station revenues and identified potential improvement levers for optimizing profitability. Among the most important: a focus on utilization and pricing.
Currently, most EV owners tend to be home owners with access to a home charger, and they often have a second vehicle for long-distance trips. But even people that fit this profile will sometimes need public charging. For instance, they might forget to charge their vehicle overnight and thus need to charge on the road, or they might find that the slow L2 charger at their workplace parking garage, where they usually connect during an eight-hour workday, is out of commission. Additionally, long journeys—those over 150 to 200 miles—will necessitate public charging.
As EVs become more common and their owners no longer come primarily from higher income groups, the percentage of charging that occurs at home is expected to fall to 50 percent by (Exhibit 2). Although about 65 percent of the US population own or rent a single-family home, many people lack garages where a charger could be placed, or find that installation is prohibitively expensive. Apartment dwellers may also lack a suitable installation site or encounter resistance from landlords who do not want chargers on the premises. In such situations, public charging, either fast or overnight, is the mainstay.
Recognizing the need for public chargers, many new players are now entering the sphere. For instance, some major automakers are banding together to invest a minimum of $1 billion in a joint venture that will build stations with about 30,000 fast chargers in urban and rural areas of the United States.
While charge-point operators can follow multiple strategies for generating revenues, two business models are now most common (Exhibit 3):
Regardless of business model, the up-front capital costs for fast charging stations are high. A 150 to 350kW DCFC charging unit can cost anywhere from $45,000 to over $100,000, and installation costs can range from $40,000 to over $150,000. Additionally, grid upgrade and integration costs can amount to millions, depending on the number of fast chargers installed at the location.
We examined the economics for a hypothetical DCFC charging station with an owner-operator business model in California. In line with typical patterns, we assumed the charging station would have 4 150kW chargers. In our first analysis, we assumed that the charge-point operator did not receive any government subsidies or credits; in the second, it did.
Assuming 15 percent utilization—equivalent to about seven 30-minute charging sessions per day—our hypothetical station would generate $265,000 to $285,000 in annual revenue, given a price of $0.45 per kWh dispensed. (Pricing may vary by time of day). On the cost side, we assumed annual expenses of $220,000 to $250,000 for electricity, demand charge rates, fixed operational expenditures, R&D, and SGA. Capital expenditure depreciation would total about $85,000 to $95,000 yearly. With these metrics, the station would lose about $40,000 to $50,000 per year in EBIT (Exhibit 4).
If the same fast public charging station received government subsidies or credits, the economics would be very different because these programs can significantly reduce costs. For instance, the recent Inflation Reduction Act includes up to a 30 percent tax credit for EV charging stations within low-income or non-urban census tracts through December , up to a maximum of $100,000 per charger. The National Electric Vehicle Infrastructure (NEVI) Formula Program, which will disperse $5 billion in funding from the Department of Transportation over a five-year formula grant period, provides credits and subsidies through the end of fiscal year . For each charging station, it will fund up to 80 percent of project costs, provided that the station serves the public and meets other criteria, such as being located along Federal Highway Administration Alternative Fuel Corridors. If the charging station in our example received subsidies or credits, annual capital-expenditure depreciation would fall by an estimated $70,000 to $75,000. With this decrease, the station’s EBIT would be positive (in the range of $25,000 to $30,000).
Even if fast public charging stations do not receive subsidies or credits, they may still be able to improve their bottom line. We have identified several potential levers for driving improvements that span multiple areas: utilization, electricity cost, electricity price, demand charge cost, lifetime hardware costs, and ancillary revenue (Exhibit 5).
While all of these levers are important, charge-point operators would have to apply them aggressively to make a difference. Consider utilization and competitive pricing, which could potentially drive the greatest gains. Using our example of a typical fast public charging station in California, the owner-operator would break even if utilization increased from 15 percent to 20 percent, or if the price for charging customers increased from $0.45/kWh to $0.53/kWh. Profitability would also be possible in other scenarios (Exhibit 6).
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Achieving the desired improvements in price and utilization may not be easy, however. The average nationwide annual utilization rate for was about 7.5 percent, with the average for highest recorded month around 12 percent—both lower than the 15 percent utilization assumed in our example. Going from that level to 20 percent utilization will require an extremely large increase in demand, but we believe that this is feasible in the coming years, given expectations about the increased number of EVs on the road and the belief that charge point operators will begin focusing on utilization rates when deciding where to build new infrastructure, rather than continuing to prioritize market expansion.
Pursuing ancillary revenue streams, such as retail sales or advertising, could also help public DCFC charging stations improve the bottom line. At traditional gas stations, 35 percent of sales revenue comes from the associated convenience stores or food service. (About 50 percent of people who buy fuel also make retail purchases). Since public DCFC stations are placed in a wider variety of locations than traditional stations, there may be more variation in the opportunities that they pursue. If the DCFC station in our example generated $12,000 in ancillary revenue streams, it could break even.
Tens of thousands of electric vehicle (EV) charging stations are available in the United States. These charging stations are being installed in key areas throughout the country for public charging and workplace charging as a supplement to residential charging. Most EV owners do the majority of their charging at home.
Find charging stations by location or along a route. Use the Advanced Filters to search for private and planned stations, as well as charging stations to match certain search criteria.
Consumers and fleets considering electric vehicles (EVs)—which include all-electric vehicles and plug-in hybrid electric vehicles (PHEVs)—need access to charging stations. For most drivers, this starts with charging at home or at fleet facilities. Charging stations at workplaces and public destinations may help bolster market acceptance by offering more flexible charging opportunities at commonly visited locations. Community leaders can find out more through EV readiness planning, including case studies of ongoing successes. The EVI-X Toolbox offers resources to estimate the charging infrastructure necessary to support typical daily travel in a given state or city, charging infrastructure needs to support long-distance travel (100 miles or more) along highway corridors in a given state or county, and to determine how EV charging will impact electricity demand.
Charging the growing number of EVs in use requires a robust network of stations for both consumers and fleets. The Alternative Fueling Station Locator allows users to search for public and private charging stations. Quarterly reports on EV charging station trends show the growth of public and private charging and assess the current state of charging infrastructure in the United States. Report new charging stations for inclusion in the Station Locator using the Submit New Station form. Suggest updates to existing charging stations by selecting “Report a change” on the station details page.
Learn more about state electrification planning and funding, including information about the Bipartisan Infrastructure Law. For a list of ENERGY STAR certified chargers, see the U.S. Environmental Protection Agency’s Product Finder list. A listing of charging infrastructure manufacturers with the ability to filter by product type/features is available on the Electric Drive Transportation Association’s GoElectricDrive website. For information on available charging infrastructure models:
The charging infrastructure industry has aligned with a common standard called the Open Charge Point Interface (OCPI) protocol, which uses specific terminology to describe charging infrastructure: station location, EV charging port, and connector. The Alternative Fuels Data Center and the Station Locator use the following charging infrastructure definitions:
To better understand terminology for networked stations and how data is collected and displayed in the Alternative Fueling Station Locator, see Electric Vehicle Charging Networks.
Charging equipment for EVs is classified by the rate at which the batteries are charged. Charging times vary based on how depleted the battery is (i.e., state-of-charge), how much energy it holds (i.e., capacity), the type of battery, the vehicle's internal charger capacity, and the type of charging equipment (e.g., charging level, charger power output, and electrical service specifications). The charging time can range from less than 20 minutes using DC fast chargers to 20 hours or more using Level 1 chargers, depending on these and other factors. When choosing equipment for a specific application, many factors, such as networking, payment capabilities, and operation and maintenance, should be considered.
Increasing available public and private charging equipment requires infrastructure procurement. Learn about how to successfully plan for, procure, and install charging infrastructure.
Once charging infrastructure has been procured and installed, it must be properly operated and maintained. Learn about charging infrastructure operation and maintenance considerations.
Another standard (SAE J) was developed in for higher rates of AC charging using three-phase power, which is common at commercial and industrial locations in the United States. Some components of the standard were adapted from the European three-phase charging standards and specified for North American AC grid voltages and requirements. In the United States, the common three-phase voltages are typically 208/120 V, 480/277 V. The standard targets power levels between 6 kW and 130 kW.
Megawatt Charging Systems (MCS) are under development for DC charging up to 3.75 MW for short-dwell as well as lower power (<500 kW) long-dwell overnight charging for medium- and heavy-duty vehicle applications. A report looks at the requirements for charging stations that could support in-route charging for heavy-duty EVs. While 500 kW chargers are currently available from several charging manufacturers, the U.S. Department of Energy's Vehicle Technologies Office is pursuing research that will bridge the technology gaps associated with implementing these networks in the United States. A report highlights technology gaps at the battery, vehicle, and infrastructure levels. In particular, many EVs on the roads today are not capable of charging at rates higher than 200 kW. However, vehicle technology is advancing, and most new EV models will be able to charge at higher rates, enabling the use of faster charging. You can find additional resources on EV charging and advanced charging system research efforts from the National Renewable Energy Laboratory. For answers to frequently asked questions about the MCS and SAE J, see the fact sheet on Charging for Heavy-Duty Electric Trucks from Argonne National Laboratory.
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