The Overlooked Economic Impact of EV Charging Stations
Local businesses near EV charging stations see an uptick in customer spending.
Clean energy products and services are always easier to sell when they have a clear economic advantage. This is why I've wondered why more commercial establishments haven't installed public electric vehicle (EV) charging stations. Gas stations, convenience stores, retailers, restaurants, and so on would immediately create a new revenue stream with good future growth potential by installing charging stations.
Now a new study identifies another economic incentive: Businesses near EV charging stations see increased spending from customers, presumably because EV owners shop or run errands while waiting for their cars to charge. The data suggests that businesses with EV chargers give them a competitive advantage over those that don't.
The authors of the Effects of Electric Vehicle Charging Stations on the Economic Vitality of Local Businesses report evaluated data from more than 4,000 EV charging stations and 400,000 businesses in California from 2019 to June 2023. They found that businesses within 100 meters of a charging station saw a 3.2% boost in spending from January 2021 to June 2023. In particular, businesses in disadvantaged or low income areas were positively affected, leading the authors to cite multi-host EV charging stations as drivers of local economic growth.
The total annual gain in customer spending within California attributed to the presence of EV charging station was $6.7 million in 2019 and $19.5 million between 2021 and June 2023. (The number was negative in 2020 due to the overall economic slowdown from the COVID pandemic.)
The report's authors noted that the increased local spending can partially offset the cost of installing EV charging stations. They also suggested that businesses considering EV charging stations might look to gas stations associated with convenience stores as a model. These businesses sell products commonly purchased while customers stop for gas, and they have a high profit margin.
The demand for convenient, reliable EV charging stations is high. Consumer surveys have shown that a lack of charging infrastructure is hampering U.S. EV sales. This is particularly true for those not living on the East or West Coast where charging station density is highest. According to the U.S. Department of Energy, the country has about 11,000 public charging stations with more than 46,000 ports. Compare that to about 145,000 gas stations, of which 127,588 are attached to convenience stores according to the National Association of Convenience Stores (NACS).
The opportunity for local businesses is clear, but the initial investment presents a big risk for them. A Level 3 fast DC charging station can cost $100,000 or more just for the equipment and roughly another $100,000 for installation. The more popular Level 2 station runs between $1,500 to $5,000. Total cost to install a Level 2 station would be around $10,000. Local businesses also must factor in repair and maintenance fees and cost of electricity.
How Local Advocacy Groups Can Help Increase EV Charging Station Numbers
Business owners will take all these costs into consideration when evaluating when or if they will get a return on the investment. This is why they need to understand the potential long-term return EV charging stations have on their entire business. Factoring that in will shorten the time to a return.
Educating local businesses about how EV charging stations can boost their core business would help them to justify the investment. These are some ideas about how local advocacy groups can help the businesses in their community get the information on EV charging benefits they need to make a decision.
Create Information Resources on EV Charging Station Costs and Benefits
Prepare a handout and web page that answers common questions that business owner's have about installing EV charging stations and points them to more thorough resources. Include information such as typical installation and operation costs in your area, firms that provide installation services, and data on local demand for EV charging. A quick primer on the types of charging stations and the typical fees they can expect for each would also be useful.
These are a few data sources for EV charging stations:
Collaborate with Local Business Organizations and Governments
Citizen groups and local businesses and governments have a common interest in building out EV charging infrastructure. A few years ago, the town I live in recognized a need for more EV charging stations. As EVs became more common, residents and local business owners believed charging stations were necessary to encourage EV owners to visit the downtown area. The town has since installed several charging stations in a municipal parking lot and is working with at least one business to install more.
Working with local business organizations and governments will inform citizen groups of the potential financial, regulatory, and permitting challenges that might get in the way of installing EV chargers. Collaboration is key to overcoming those challenges.
Local government and organizations can also help distribute information packets you might produce on EV charging or promote relevant events that you host.
Host Events about the EV Charging Opportunity
An expert-led workshop on EV charging station installation will identify businesses that are considering them. I've seen workshops work well for other energy topics such as solar panels, heat pumps, or home weatherization. They tend to attract people who have already done a little research on the topic but still have a lot of questions. For them, the opportunity to ask an expert questions in person is a big draw.
That expert might be someone who is in the EV charging station business, a business owner who has gone through the process, or ideally both. Schedule the workshop for an evening or weekend when business owners are more likely able to attend. For those who can't, make the event available by a conference call and record it so people can view it later.
Energy News of the Week
Proposed California Energy Code to Boost Heat Pump Adoption
The California Energy Commission has updated the state's Building Energy Efficiency standards to support California's clean energy, public health, and climate goals. The changes, which must be approved by the California Building Standards Commission, are expected to drive 500,000 heat pump installations. If approved, the new standard will take effect January 1, 2026.
Source: Utility Dive, "2025 California energy code updates aim to drive heat pump adoption, save nearly $5B in energy costs"
U.S. DOE Better Buildings Initiative Has Saved $22 Billion So Far
Organizations participating in the U.S. Department of Energy's Better Buildings Initiative have cut $22 billion in costs due to energy efficiency improvement since 2011, according to the DOE's 2024 Better Building Initiatives Progress Report. Eleven of those partners have reached their Better Climate Challenge goal to cut greenhouse gas emissions by 50% in 10 years.
Source: Utility Dive, "Businesses saved nearly $22B and cut emissions via Better Buildings Initiative, DOE says"
47% of U.S. Households Predicted to Go Solar by 2050
Enverus Intelligence Research says that rising energy costs will drive nearly half of U.S. households to install rooftop solar by 2050. That percentage could be higher in states with higher retail energy prices such as Texas, Florida, California, and New York. The rise in solar adoption will have an effect on utilities due to a changing daily load curve.
Source: Utility Dive, "Rising power prices could drive nearly half of US households to rooftop solar: Enverus"