BUSINESS MODEL
We see immense potential and opportunity in EV charging. Because of this, we offer optimized and turn key solutions for businesses, directed towards efficient use of capital and maximization of revenue. We also understand the government incentives available for charging, and are experts in utilization for our strategies.
The market for EV is forecasted to grow significantly over the next 10 year or so. With the increase in EVs on the road, a reasonable assumption can be made that the increased need for power will result in the increase in use of EV Charging stations available for use by EV drivers.
The table to the right shows the data for expected EV market growth (obtained through Deloitte), which is assumed to correlate directly with the growth of charging behavior.
Deloitte EV Market Growth Projection
Assumptions Used in this Model
| Range | Sessions/Day | Avg kW/Session | Sales Price/kW | Electricity Cost/kW |
|---|---|---|---|---|
| Lower (EA) | 5.4 | 18.6 | $0.35 | $0.09 |
| Average (EA) | 12.3 | 19.5 | ||
| Upper (Tesla) | 20.0 | 30.0 |
Data relating to current charging station performance was pulled from a recent annual report published by Electrify America. The data pulled from this report was thoroughly analyzed to ensure it is representative of an average charging station in the current timeframe.
The Lower data set was collected by observing the performance for Electrify America’s lower 50 percentile of stations. Some of these stations were along low traffic routes, and were not operational for the full year. The averages taken with the consideration of these stations can help simulate a growth setting, as stations will be developed in different periods of time.
The Average data set was collected by observing the performance provided for 198 Electrify America stations along various high traffic routes in the United States. These stations were in operation for all of timespan covered in the report.
The Upper data set was collected by parsing through sourced data regarding Tesla’s Supercharger system in the united states. This system is robust and developed much more than any other DC fast charging system available. It also has a higher utilization rate due to the high number of Tesla vehicles on the road. With Tesla continuing to grow in popularity and with sales, this model is also prime for growth in the coming years.
Average Daily Charging Session Forecast
Increasing Charging Sessions
As the number of EVs on the road increases, so does the demand for charging. Using the assumptions laid out in the previous section along with the EV market share projection, we can calculate the forecast for average daily charging sessions per charging station unit.
High Profit Potential
From the forecasts and charts above, it can be seen that a charging station, even on the lower end of the spectrum, has the potential to become a significant source of revenue as the number of EVs on the road increases. Well positioned stations with strong capacity and facilities have the potential to generate profits that rival conventional gas stations in the near future, and significantly profit as EV market share grows.
Net Profit per Station Forecast
