Should You Install EV Chargers? What Property Owners Need to Know

For commercial property owners, installing EV charging stations presents a valuable opportunity to enhance property value, attract tenants, and generate additional income. However, navigating the complexities of EV charger types, installation requirements, and potential incentives is crucial to making a smart investment.

As part of our Owner Strategy Series, GM Properties consulted with Marika Erdely, CEO of Green Econome to provide building owners with guidance on navigating energy regulations and optimizing property performance.

Understanding EV Charger Types

When considering EV charging stations for your property, it is important to choose the right type of charger based on your building’s power capacity and the needs of potential users. There are three primary types of EV chargers:

• Level 1 Chargers typically use a standard 120-volt outlet, offering the slowest charging option. A full charge could take over 24 hours, making Level 1 chargers less practical for commercial settings.
• Level 2 Chargers are the most common choice for commercial properties, Level 2 chargers operate at 6-9 kilowatts (kW). They provide a full charge in several hours, making them ideal for workplaces where employees can charge during their shifts. The upfront cost for a Level 2 charger averages around $12,000, with the potential to generate roughly $0.40 to $0.65 per kWh.
• DC Fast Chargers (DCFC) are the most high-powered option, which can charge a vehicle in 30-40 minutes, DCFCs are particularly effective in retail or high-traffic areas where quick turnaround is needed. With their ability to charge vehicles in under an hour, they could serve as a potentially lucrative revenue generator, especially if offered as a public charging option in busy locations. However, they come with a higher installation cost that averages around $70,000 and require more substantial power availability (100-150 kW).

Key Considerations for Installation and Maintenance

When installing EV charging stations, property owners must consider several important factors to ensure a successful and cost-effective implementation. The proximity of charging stations to the building’s electrical meter is critical. The farther away the chargers are, the more expensive it is to run them. Since each charging station typically requires 100 amps of available power, assessing power capacity early in the planning process could help prevent unexpected costs.

Compliance with ADA requirements is also essential, ensuring that charging stations are accessible to all users.

As for ongoing costs, many manufacturers offer maintenance programs or warranties, which can simplify operations. Be mindful of warranty terms and consider who will handle repairs if necessary — the manufacturer, an electrician, or a third-party service provider. When selecting equipment, always choose a reputable brand; if a company ceases operations it will make getting replacement parts difficult.

Impact on Property Value

EV charging stations are increasingly viewed as an attractive amenity for commercial properties as they can improve a property’s marketability and future-proof it against growing EV adoption trends.

Property owners need to decide whether to make their stations available for public or private use. In retail environments, for example, public charging stations can encourage longer visitor stays, boosting sales for on-site businesses, and additionally provide owner’s a passive revenue stream. Meanwhile private use stations can be positioned as a value-add for prospective property tenants.

To help manage the upfront costs, there are many financing options and incentives available.

Programs driven by utilities such as Edison or Los Angeles Department of Water and Power (LADWP) may offer grants, rebates, or incentives, particularly for DCFC installations. Some charging companies even offer revenue-sharing models that could help cover installation costs while generating income.