Key takeaways:
- Commercial EV charging is an investment. Your ROI depends on choosing the right revenue model for your business type and audience.
- Direct revenue models monetize charging sessions and can turn EV charging into a source of profit.
- Indirect revenue models support foot traffic, dwell time, and tenant or employee satisfaction.
Commercial EV charging is an investment for your business. And like with any investment, you need to figure out what kind of ROI you can expect.
Before you can calculate an estimated ROI, you need to look into different revenue models for EV chargers and decide which one makes the most sense for your business and audience.
Let’s explore revenue models for EV charging, including direct and indirect revenues, and look into what businesses like yours typically use.
How Much Can a Business Earn With EV Charging?
It depends on the pricing and usage. On average:
- A Level 2 charger costs $3,500 to $15,000 to install and can generate anywhere from $2,000 to $10,000 in annual earnings.
- DC Fast chargers have a higher upfront cost of $18,000 to $350,000 per unit, but they can generate $20,000 to $50,000 a year in earnings.
Keep in mind that these are average estimates. What you can earn with a commercial EV charging infrastructure varies a lot based on the type of business you operate and the revenue model you pick.
Free EV Charging as a Customer Acquisition Strategy
Offering free EV charging can be an interesting loss leader for your business: It’s a perk that won’t generate any direct revenue, but it can create a lot of value by keeping people at your property longer.
While they wait for their EV to charge, drivers are likely to spend more on things like food and entertainment. This makes free EV charging ideal for retail centers and other destination businesses.
Free EV charging also has its perks for multifamily properties and workplaces, where it can lead to higher satisfaction and support sustainability goals.
Cost Recovery EV Charging: Break-Even Pricing for Businesses
Sometimes, the goal of commercial EV charging is to provide a useful amenity rather than offer a service with a high profit margin.
With a cost recovery model, you can charge just enough to cover what your EV charging infrastructure costs you. This can include:
- Your upfront investment spread out over time.
- The ongoing cost of electricity and EV charger maintenance.
- Other operating costs.
If you want a pricing model that’s easy to implement, charging a flat fee per charging session can cover your costs. You can also look into charging by the minute or by the kilowatt-hour.
A cost recovery model can be a good strategy to protect your business from the rising cost of energy and ensure you can keep up with maintenance as your EV charging infrastructure ages.
For-Profit EV Charging Pricing Models
For-profit pricing models are common: You charge a flat fee or set a per-minute or per-kilowatt-hour cost.
This approach turns EV charging into a source of profit, and you can go further with options like time-of-use pricing to reflect fluctuations in demand throughout the day or week, or even charge an ideal parking fee when an EV driver is done charging.
If you’re considering a for-profit pricing model, you should know that 35% of EV drivers consider cost as a top priority when picking a place to charge. For 42%, charging speed comes first. A safe location and reliable charging options are also important, even though pricing comes first.
Subscription and Membership Models for EV Charging
With this pricing model, EV drivers pay a recurring monthly or annual fee for access to your infrastructure.
You can offer a monthly charging credit in exchange, or give them unlimited access. Some businesses opt for a hybrid model where one-time users pay a per kilowatt-hour rate, while subscribers get a discounted per kilowatt-hour rate.
This pricing structure makes sense if you expect repeat traffic to your location, or if you’re looking into offering monthly contracts for a business charging their fleet with your infrastructure.
It’s a great way to generate predictable recurring revenues, but keep in mind that paying for a subscription creates expectations in terms of charger uptime. Make sure you have a solid EV charging maintenance plan in place to meet these expectations.
Revenue Sharing and Host Fees for EV Charging Stations
There is another way to make money with EV charging: You can partner with a charging network or an owner-operator company.
This partner will install EV chargers on your property and retain ownership of the infrastructure. They’ll cover maintenance and energy fees, and share a portion of the revenues with you.
This share of the revenue can be a flat monthly fee in the form of a leasing agreement or a percentage of the profit generated.
It’s a good option if you’re looking to add EV charging to your property without a significant upfront investment or ongoing maintenance costs.
Choosing the Right EV Charging Revenue Model
The best EV charging revenue model should align with your business goals, customer behavior, and risk tolerance.
As your local commercial EV charging consultant and installer in Central Florida and the Space Coast, EVPlugz is here to help you:
- Audit your site, traffic, and customer profile.
- Model ROI across free, cost‑recovery, for‑profit, subscription, and revenue‑share options.
- Design a pricing strategy that balances driver expectations with your financial goals.
- Handle permitting, installation, networking, and ongoing maintenance.
Give us a call today at 321-549-7002 or contact us online for a no‑obligation consultation and custom revenue model recommendation.
