There are some who believe electric vehicles will not take off because of the limitation of charging. This is something that does not hold water when you analyze it.
To start, a significant percentage of vehicle owners charge at home Most who are in single family residents can simply plug in their cars. This is the advantage of using electricity.
TRY that with gas. While some companies might have their own pumping station, this is not something that you see at individual residents.
In fact, there is one place to fill a vehicle up: the gas (petro) station.
This is about to change.
EV Charging Stations Everywhere
I am not sure many realize the opportunity that is being presented.
restaurants. hotels. Office Parks.
Each of these can offer retail charging. Here we can see a profit center for these businesses. One company is already starting to see the light.
The company Invisible Urban Charging (IUC) is aiming to install and operate one million chargers for electric vehicles in the USA over the next five years together with the CBRE Group. The locations will include properties currently managed by CBRE.
Here is a partnership between a company that will provide 1 million chargers and a property management company.
Under the agreement, CBRE will provide site selection, project management, installation and maintenance services. IUC will provide financing, supply the charging hardware and software, and manage operations through its Charging-as-a-Service platform.
According to Wikipedia, CRBE is the largest commercial real estate management company in the world (based upon revenues).
The agreement means that we will see 1 million chargers available at these commercial properties. That means the tenets are able to utilize them while at work.
Profit Potential
The average cost of electricity per kWh, in the US, is around 14 cents. This can vary depending upon the state. Also, most EVs get 3-4 miles per kWh. This works out to under 5 center per mile.
Here is where we see some potential for strong profits.
By utilizing the free space, this could easily net around 5 cents per kWh, about double the cost. This would still come under the gas price of near 15 cents per mile.
This is the motivation behind the partnership between these two companies. They seek to utilize the physical space the real estate firm has to create charging-as-a-service.
It is likely a very good idea. We also have an opportunity that is not present with the oil base transportation system.
Consider aLL the other entities that could do something similar.
Parking garages. hospitals. libraries. condominium and apartment complexes. schools and universities. Supermarkets. Gyms.
Range Anxiety
The idea of range anxiety is senseless; at least it will be.
There might be some areas where it is still valid. However, over the next 5 years, the amount of charging stations being installed is going to explode. Any business could get into this (as long as it controls the land it is on). No longer are we looking at just EV charging companies.
Of course, there is always a twist to things.
Oil and gas company BP has agreed to purchase $100 million worth of electric vehicle chargers from Tesla. This marks the first time Tesla has ever sold chargers to another company, according to an announcement from BP.
Even the oil companies are looking to get into the game.
The point is that many can become infrastructure providers. We are going to see a wide array of owners of these stations, often placed on their property.
With a 75%-100% profit margin, the numbers are going to make sense in a lot of instances. The key will be those areas that have the traffic.