Charging station: the return on investment

Investing in an EV charging station is a promising but complex endeavor, requiring a thorough understanding of the market, solid financial planning, and attention to technical details. With the right approach, investors can not only benefit from an attractive financial return but also play a key role in the transition to greener mobility.

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When we see electric cars popping up on neighbors’ land, parking spaces or in the media landscape, we can rightly ask ourselves the question of the efficiency of charging stations.

Indeed, every car needs to be regularly recharged and the number of owners of home terminals is not the highest, the cost still having to be amortized.

So, what is it really?

Case study: Example of a charging station and the revenue generated

– You buy 8 Superchargers for €45,000 in April 2024
– You earn €32 per reloading session. (Approximately 72 cars per day)
– After one year you have €840,960

What return on investment can you expect?

Of course, here is a structured answer with rates, projections and organized into key points:

  • Annual Rate of Return : Depending on location and traffic, the annual rate of return on investment in a charging station may vary. Generally, it is between 8% and 12%. This rate may increase with the increasing adoption of electric vehicles.
  • Electric Vehicle Market Growth Projections :
    • By 2030, the share of electric vehicles in new car sales could reach 30% to 40% in Europe.
    • The increase in the number of electric vehicles will lead to increased demand for charging stations.
  • Return on Investment (ROI) :
    • Amortization : The initial ROI (amortization of installation costs) is generally expected over a period of 5 to 7 years.
    • Income : The revenue generated depends on several factors, such as the charging price, the occupancy rate of the terminal, and partnerships with charging operators or local companies.
  • Value Added to Property :
    • Increase in Real Estate Value : The presence of charging stations can increase the value of your property by 2% to 3%.
    • Rental Attractiveness : Properties equipped with charging stations are more attractive to eco-conscious renters and buyers.
  • Environmental and Brand Benefits :
    • Reduction of the Carbon Footprint : Contributes to a sustainability strategy.
    • Brand image : Positions your property as a modern place committed to the energy transition.

These information are estimates based on current market trends and may vary depending on specific location, pricing policies and other dynamic market factors. For a personalized and detailed analysis tailored to your situation, we recommend consulting a financial expert or charging station installation specialist.

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Have a financial fund to “guarantee your back”

You could start a business like that, but that’s a bit like saying, “What’s stopping me from finding land, buying oil, buying a refinery, and making my own gas?” ? »

Go ahead, but I hope you have a major backer to make it work and prepare you for years of losses.

Investing in a charging station is not only equipment that is expensive to purchase. But there is also a long-term maintenance effort, in addition to having to share the profits with the owners.

Additionally, you will need to develop an app or way to get paid directly, otherwise you will lose additional money by using an intermediary payment provider.

Focus on location and ancillary services

To be a good investment you have to be in a place where people have to charge, because they are far from their home. Indeed, no one is going to pay extra to bill when they can go home. And it’s also good to have something to do while they wait between 20 and 50 minutes, depending on the type of charging.

Many gas stations allow you to order food and drinks, in addition to fuel. Also think about shopping centers, places to walk the dog, etc.

So consider who would use such a place and why. Road travelers would be your biggest market. Next, consider that it takes an hour to quickly charge most cars, so you’ll need to add things to do that take about an hour.

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What should you pay attention to when investing in charging stations?

The electric vehicle (EV) market in Europe has seen significant growth and presents numerous opportunities for investors and market participants. Here is a summary of key trends and predictions:

  1. Market size and growth rate :
  • In 2022, the European EV market was valued at approximately USD 303.6 billion.
  • It is expected to record a compound annual growth rate (CAGR) of 16% between 2023 and 2032.
  • Another study predicts the market to reach USD 128.492 million by 2028, with a CAGR of 23.4% from 2023 to 2028.
  1. Growth factors :
  • Supportive government regulations and growing environmental awareness are key drivers.
  • Increasing energy costs and competition among emerging energy efficiency technologies are also driving the market growth.
  1. Market segments :
  • Battery electric vehicles (BEV) and hybrid electric vehicles (HEV) are expected to contribute significantly to the regional market.
  • Passenger vehicles dominate the market, but the commercial vehicle segment is expected to grow rapidly.
  1. Leading countries in Europe :
  • Germany is the largest market in Europe, followed by Norway, the United Kingdom and France.
  • Norway is particularly relevant in terms of EV diffusion, with a significant share of EVs sold.
  1. Industry Developments and Key Players :
  • Companies such as Volvo, BMW Group, Daimler AG, Tesla, and Nissan are key players in the European EV market.
  • Recent developments include the expansion of Volvo’s electric truck range and contracts signed by Feintool for the delivery of electric motor components.

In summary, the European EV market is expanding, supported by favorable government policies, increased environmental awareness, and technological advancements. The trend is towards rapid growth, particularly in the passenger vehicle segment, with growing interest in EVs in several European countries.

A niche market

Most people don’t have an EV and for those who do, they can charge home for much less. So there’s not much incentive to use charging stations unless they’re traveling or can’t do it at home for some reason.

This is the same reason why pay stations to charge your phone aren’t that popular : People just don’t want to pay for something they can get “for free” at home, unless they have to.

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