In the midst of a global push towards achieving Net Zero emissions and fostering sustainable development, electric vehicles (EVs) have swiftly gained traction due to their eco-friendly nature and substantial carbon emission reductions. This paradigm shift in transportation presents an invaluable opportunity for businesses to invest in EV chargers. This article delves into the compelling reasons why businesses should prioritize this investment sooner rather than later.
Policy Mandates and Government Incentives
Around the globe, governments are strategically shaping policies to drive the widespread adoption of EVs and to curtail carbon emissions. Moreover, businesses that take the initiative to provide EV chargers stand to reap substantial benefits from these evolving regulations and incentives. Here’s a closer look at some exemplary policies that illuminate the symbiotic relationship between governments and businesses in advancing EV infrastructure.
Infrastructure Investment and Jobs Act (IIJA) & Inflation Reduction Act (IRA): In November 2021 President Biden signed the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), authorizing an estimated $1.2 trillion investment in U.S. infrastructure, including at least $7.5 billion dedicated to supporting electric vehicle (EV) adoption through dedicated funding for vehicles and charging infrastructure. The act includes an additional $32.5 billion eligible to support EVs, plus $10.5 billion for grid upgrades and battery development. Nine months later, in August 2022, President Biden signed the Inflation Reduction Act (IRA), creating an additional $369 billion in climate investments including $47 billion eligible to support EVs (not including tax credits or loan programs).
Clean Vehicles Directive: The European Union’s Clean Vehicles Directive mandates that public entities and organizations maintain a specific proportion of their vehicle fleets as low- and zero-emission vehicles, encompassing electric vehicles. This directive establishes a compelling incentive for businesses to augment their EV charging infrastructure, aligning with the target of fleet electrification.
Workplace Charging Scheme (WCS): The United Kingdom’s WCS offers an appealing proposition to businesses, providing grants that offset up to 75% of the costs associated with procuring and installing EV charging points. This progressive policy encourages businesses to proactively offer charging facilities to both employees and visitors, thus propelling the adoption of electric vehicles.
Zero Emission Vehicle (ZEV) Mandate: Norway’s ambitious ZEV mandate mandates that car manufacturers deliver a specific percentage of zero-emission vehicles, prominently including electric vehicles. This policy mandate dynamically fuels the necessity for businesses to furnish charging stations, addressing the escalating demands of the burgeoning EV market.
Zero-Emission Vehicle Infrastructure Program (ZEVIP): Canada’s forward-thinking ZEVIP extends financial support to projects aimed at establishing or expanding EV charging infrastructure. This inclusive program strategically invites businesses to play a pivotal role in the expansive growth of the charging network, thereby underpinning the broader adoption of electric vehicles.
These policies illuminate the synergistic dynamics between governments and businesses as they navigate the realm of electric vehicle adoption. In the United States, businesses can harness substantial tax credits up to $30,000 for their investment in EV charging infrastructure through the IIJA. Likewise, globally, nations such as Norway and the Netherlands provide commendable financial incentives to encourage the establishment of EV charging stations.
Economic: Growing EV Charging Market
Booming EV Sales:
In today’s dynamic landscape, businesses are presented with a unique and promising opportunity to flourish within the rapidly expanding EV charging market. The growth trajectory of EV sales is unmistakable, surging beyond the 10 million mark in 2022, as substantiated by the latest IEA data. This momentum extends into 2023, with a remarkable 25% year-on-year increase evidenced by the sale of over 2.3 million electric cars in Q1 alone. Projections confidently foresee a substantial 14 million sales by year-end, propelled by later-year purchases.
Expanding EV Charging Market:
Underscoring this growth, BloombergNEF’s visionary study envisions a staggering $3.7 trillion revenue potential within the EV charging sector by 2040, illuminating substantial economic prospects on the horizon. As the number of EV drivers continues to increase, the demand for accessible charging points during daily activities becomes increasingly apparent. Unlike traditional gasoline-powered vehicles that are refueled sporadically, EV drivers actively seek out charging opportunities whenever they park, often maintaining their battery level above 50% except for extended trips or circumstances when public EV charging infrastructure is inaccessible.
EV Drivers Prefer Business Chargers: Convenience Matters
Plugless, a research firm, delved into the attitudes of EV drivers toward charging locations and preferences. Their study unearthed a compelling insight: EV drivers have a distinct inclination to utilize business EV chargers. These drivers prioritize easily accessible, secure, and staffed charging locations. Furthermore, they exhibit a pronounced preference for sites that offer supplementary amenities such as food and beverage options, restrooms, and other conveniences—attributes frequently associated with businesses.
Social: Appealing to Eco-Conscious Customers and top Talents
In today’s world, sustainability holds paramount importance to both consumers and employees. By installing EV charging stations, your business showcases its dedication to environmental responsibility, appealing to eco-conscious customers and attracting top-tier talent. A survey by Cone Communications underlines this trend, revealing that 87% of consumers prioritize companies that champion environmental causes. This presents a compelling social incentive, aligning your business with conscientious values and positioning you for growth. The result is a competitive advantage in talent attraction, customer retention, and the profitability that comes with EV charging facilities.
Technological: Staying Ahead of Industry Transitions
The automotive industry is undergoing a technological transformation towards electric mobility. Businesses that invest in EV charging stations align with this transition, positioning themselves as pioneers in an evolving landscape. Research from McKinsey forecasts that by 2030, up to one-third of new cars sold could be EVs, underscoring the importance of early technological adoption.
Environmental: Contributing to Sustainability Goals
The environmental benefits of EVs are well-documented. By providing charging stations, your business directly contributes to reducing greenhouse gas emissions and air pollution. According to the Environmental Protection Agency (EPA), electric vehicles emit 54% fewer greenhouse gas emissions compared to conventional gasoline vehicles.
Legal: Compliance & Avoidance of Restrictions
Evolving regulations emphasize the need to address climate change. By incorporating EV charging stations, your business aligns with these regulations and mitigates the risk of penalties. In regions enforcing stringent emissions standards, having charging infrastructure is not just an advantage but a necessity.
In conclusion, investing in EV charging stations for your business offers a plethora of benefits. From tapping into a growing market to attracting customers, generating revenue, and enhancing your brand’s image, the advantages are significant. Moreover, with government incentives and the increasing shift towards electric mobility, the time to invest is now. By making this strategic move, your business can align with sustainability goals while positioning itself for a future dominated by EVs. We, EN Plus, stand prepared to guide your path towards a greener and more intelligent future. Contact us today to embark on the exploration of these pioneering EV charging solutions.
– Infrastructure Investment and Jobs Act (IIJA), United States Congress
– Inflation Reduction Act (IRA), United States Congress
– BloombergNEF – “Charging the Future: EV Charging Outlook 2020”
– Cone Communications – “2020 Cone/Porter Novelli Purpose Study”
– McKinsey & Company – “Automotive revolution – perspective towards 2030”
– Environmental Protection Agency (EPA) – “Greenhouse Gas Emissions from a Typical Passenger Vehicle”