It’s no surprise that the electric car industry has grown in popularity over the past ten years as gas prices surge and more affordable options become available.
For businesses, this provides an opportunity to provide value to customers, employees, and tenants by providing EV charging stations for use.
In this blog, we’ll cover the costs of installing your EV charger, approximately how much it will cost to charge your vehicle and Colorado grants that will end up saving you more on your investment than you might think.
The Future is Electric
We are in the midst of the biggest automotive revolution since Henry Ford’s first production line started in 1913. General Motors says it will make only electric vehicles by 2035. Ford says all vehicles sold in Europe will be electric by 2030, and VW says 70% of its sales will be electric by 2030. So, we can expect electric vehicles to not only grow but become the majority of cars on the road one day, but this is not a change to fear. Everyone will benefit. Not to mention the positive effects on the environment.
EV positively impacts residents by increasing property value, attracting new customers, and increasing employee satisfaction.
With electric vehicle prices becoming more affordable, many are considering switching to electric. Still, unlike gas-powered cars, more logistics go into owning an electric car, like having somewhere to charge your vehicle.
30% of Tesla drivers choose where they live based on EV charging availability.
Cost of EV Charging Stations
The cost of electric car charging stations includes installation and the cost of electricity. Pricing out the total cost of the charging stations can be hard to estimate without the help of a professional, but in the next section, we’ve outlined the most critical factors.
The cost of installing an EV charging station in Colorado can vary based on a number of factors, including the type of charger, the size and capacity of the charger, the electrical service available at the installation site, and the labor costs associated with the installation.
- Type of Charger. There are three main types of EV chargers: Level 1, Level 2, and Level 3. Level 1 chargers are the slowest and least expensive, while Level 3 chargers are the fastest and most expensive.
- Size and Capacity. The size of the charger is based on the amperage rating of the electrical circuit it will be installed on. The capacity of the charger is based on the voltage and amperage of the charger, and the type of battery being charged.
- Electrical Service. The electrical service available at the installation site will determine the maximum amperage rating of the circuit breaker that can be installed.
- Labor Costs. The labor costs associated with the installation of an EV charger can vary depending on the type of charger, the size and capacity of the charger, the electrical service available at the installation site, and the experience of the installer. Installing a Level 1 charger is typically less expensive than installing a Level 2 or Level 3 charger.
Because of the various factors, the only way to accurately calculate the cost of installation is by contacting an electric professional and getting a customized quote.
The cost of electricity for electric vehicle (EV) charging stations can vary depending on a number of factors, including the type of charger, the location of the charger, and the time of day or week when the charger is used.
To help offset the cost of electricity, businesses can take advantage of EV charging station rebates and incentives offered by state and local governments.
Colorado and National EV Charging Savings
Saving money on the hardware and installation is just the beginning. EV Charging on your property qualifies you for lucrative tax incentives like rebates, write-offs, credits, and more.
Charge Ahead Colorado Program
The Charge Ahead Colorado Program provides financial support for charging stations to fund 80% of the cost of a charging station – up to $9,000 for a Level 2 Dual Port Station. There may also be additional incentives available from your local utility. Since its inception in 2013, the Charge Ahead Colorado program has made awards for more than 1000 EV charging stations across the state.
Eligible applicants include local businesses, governments, school districts, state agencies, apartment/condo complexes, and non-profits.
- Charge Ahead Colorado can cover:
- Charging station and related equipment (Level I charging stations are not an eligible project)
- Construction materials
- Construction labor costs associated with the equipment purchase and installation of Level II or DCFC charging units
- Networking/subscription feed and activation fees
*Stations must remain in place and active for 5 years
What Are the Grant Amounts?
RAQC and CEO will fund 80% of the cost of a charging station up to the following set maximums:
- Level 2, Fleet Only Charging Stations: $6,000
- Level 2, Dual Port Station (up to 25kW): $9,000
- Level 3, Multiple Connection Standard Station (minimum 50kW+): $35,000
- Level 3, Ultra-fast Multiple Connection Standard Station (minimum 100kW+): $50,000 (limited availability at the discretion of the awarding agency)
Not sold? Here is an example of the amount of savings you can get with this program:
Let’s say you have a 3 Dual Station Project:
- Equipment + Service (5 Years) = $36,000
- Make Ready Average = $25,000
- Total Project Cost (Before Rebate) = $61,000
Charge Ahead Colorado Rebate = $27,000
Total Project Cost After Rebate= $34,000
That means the rebate covers 45% of the project cost.
EVSE Federal Tax Credit
You may also be eligible for a nationwide tax credit for the purchase of new EV charging stations. The credit covers a portion (30%) of the cost of hardware and installation, up to $30,000 for commercial projects.
Where does the tax credit apply?
- Applies to public and private stations
- Applied to L2 (Level 2 Charger) and DCFC (Direct Current Fast Charge)
- The customer must own and have paid for the station or the make ready
- Does not apply to network costs
So, how much do electric car charging stations cost?
There is no one-size-fits-all answer to this question, as the cost of electric car charging stations can vary greatly depending on many factors and the potential to get a high rebate.
However, there is one thing we can say for sure, with Colorado being the 12th largest state for EV vehicles (and increasing), businesses will need to develop an EV plan sooner rather than later to stay ahead of the curve.