Cost to Install EV Charger: What You Need to Know

The decision to install an EV charger raises important questions, especially about cost. Understanding the factors involved will help you make informed decisions. In this blog, we’ll break down the cost to install EV charger systems and what influences these expenses.

Types of EV Chargers

There are three primary types of EV chargers—Level 1, Level 2, and Level 3—each offering different charging speeds, installation requirements, and costs.

Level 1 Chargers

Level 1 chargers are the simplest and least expensive option. These chargers use standard household outlets (120V), making them ideal for low-usage settings. Since they don’t require significant electrical upgrades, the cost to install EV charger Level 1 systems is often quite low, typically ranging between $300 and $600.

However, the slower charging speed (taking 8-12 hours to charge a vehicle fully) makes them better suited for long-term parking, such as overnight charging for employees or residents. While they are not ideal for high-traffic commercial locations, they can be a good solution for properties offering basic, long-term charging solutions.

Level 2 Chargers

Level 2 chargers provide a faster solution, requiring a 208-240V outlet. They can charge an electric vehicle up to 20 miles of range per hour. The average cost to install a Level 2 EV charger varies, with units costing between $300 to $1,200 and installation fees adding up to a total range of $500 to $2,000.

These chargers are ideal for businesses looking to enhance customer or tenant experiences with faster charging capabilities. However, their installation often involves upgrades to electrical panels and requires professional electricians, which can increase costs. Despite these costs, Level 2 chargers are becoming increasingly common at workplaces, retail locations, and apartment complexes as electric vehicles (EVs) become more mainstream.

Level 3 Chargers (DC Fast Chargers)

Level 3 chargers, or DC fast chargers, are the most powerful, providing up to 80% battery charge in 20 to 30 minutes. These chargers are best suited for commercial properties where fast turnover is essential, such as shopping centers, gas stations, or highway rest stops. The cost to install a Level 3 EV charger can range from $50,000 to $100,000 due to the required infrastructure and electrical upgrades.

The high cost is largely due to the extensive electrical upgrades needed to handle the power demands of fast charging. Additionally, many municipalities may require special permits and inspections, adding to the installation timeline and cost. However, offering fast charging solutions can attract more EV drivers and generate revenue, making the investment worthwhile for certain businesses.

Key Factors Influencing Cost to Install EV Charger

While the type of charger heavily impacts cost, several other factors influence the total installation expense.

Electrical Capacity

Electrical upgrades are often necessary, especially for Level 2 and 3 chargers. Existing infrastructure might not support the higher voltages required, leading to additional expenses. For example, upgrading an electrical panel may cost between $1,500 and $3,000. Older buildings may require significant rewiring or circuit upgrades to handle the increased power draw from EV chargers, so it’s important to assess your electrical infrastructure before installation.

Additionally, properties planning for multiple chargers will need to evaluate their overall power capacity and may require smart charging systems to manage load distribution efficiently.

Installation Location

The proximity of your charging station to an existing power supply plays a crucial role in determining installation costs. The farther the charger is from the electrical panel, the higher the cost due to wiring, trenching, and labor. The cost to install EV charger systems in a parking garage or outdoor lot often adds extra expenses for trenching and protective conduit.

For commercial properties, it's also important to consider accessibility, visibility, and safety. Well-placed chargers can increase usage and help justify the investment. For example, placing chargers near the entrance of a retail store or office building can encourage more EV drivers to visit your location.

Permits and Regulations

Local codes and regulations will also influence the overall cost. Obtaining the proper permits for electrical work or construction is essential for meeting safety standards. These permits often add several hundred dollars to the total cost, depending on the region. Commercial property managers should also be aware of zoning laws and any special requirements for public charging stations. Navigating these regulations early in the planning process can help avoid delays or additional expenses later.

Labor Costs

The complexity of the installation process dictates labor costs. The average labor cost to install a Level 2 EV charger ranges from $400 to $1,000, while labor for a Level 3 installation can be significantly higher, averaging $1,000 to $3,500. Complex installations, including those involving trenching or heavy electrical work, will drive these numbers higher.

In some cases, hiring specialized contractors with experience in EV charger installations may be necessary to ensure compliance with local electrical and safety codes. While this may increase costs, it reduces the risk of costly repairs or upgrades down the line.

Additional Costs to Consider

Beyond the initial installation, you may face additional costs, such as:

Electrical Upgrades

Properties may need more than just basic installations, such as upgrading to support smart meters or power management systems. These upgrades ensure a more efficient charging process, though they can add several thousand dollars to the final cost. Upgrading the electrical capacity is essential for properties that plan to expand their EV charging infrastructure in the future.

Dual Charging and Power Sharing

If you're looking to accommodate multiple vehicles simultaneously, dual charging and power-sharing options allow two cars to charge from the same station. These setups can increase initial costs but offer long-term value by serving more vehicles without needing separate chargers. In high-traffic commercial areas, offering multiple charging spots can enhance customer satisfaction and encourage repeat visits.

Networked Charging Options

Networked EV chargers offer remote monitoring, access control, and billing capabilities. These systems are ideal for commercial properties looking to track usage or set up revenue-generating public charging stations. Although they add to upfront costs, they provide significant operational advantages, such as data insights on charging patterns, energy usage, and the ability to troubleshoot issues remotely.

Tips to Reduce Cost to Install EV Charger Systems

While installing EV chargers can be costly, there are ways to reduce expenses.

Choose the Right Location

Selecting a charger location close to existing electrical infrastructure minimizes trenching, wiring, and installation time, significantly reducing labor costs. Furthermore, selecting a central and convenient spot increases the likelihood of usage, offering a better return on investment.

Utilize Existing Infrastructure

Whenever possible, leverage existing wiring or electrical setups. Repurposing existing structures like parking lots or garages reduces the need for major modifications, saving both time and money. This is especially useful for businesses with large parking areas or facilities that already have a robust electrical infrastructure in place.

Take Advantage of Incentives

Federal and state incentives, along with utility rebates, can significantly offset the cost to install EV charger systems. Many governments offer tax credits or grants for businesses that install EV charging stations, making it easier to manage upfront expenses. Be sure to check local programs and deadlines, as these incentives can vary by location and may require specific installation guidelines to qualify.

Why Partner with Lightility?

Installing an EV charger can be a complex project, but choosing the right type, location, and considering additional costs can streamline the process. By leveraging existing infrastructure and taking advantage of available incentives, you can keep your installation costs under control.

If you're ready to enhance your commercial property with EV charging capabilities, Lightility is here to help. As a national leader in lighting and energy efficiency solutions, we offer expert guidance on EV charger installations tailored to your specific needs. Contact Lightility today for a consultation on your EV charging project and learn how we can support your transition to a greener, more sustainable future.

Frequently Asked Questions (FAQs)

How much does it cost to install a Level 2 EV charger?

The average cost to install EV charger systems vary by level. To install a Level 2 EV charger, the price typically ranges from $500 to $2,000, including the charger unit and installation fees. This depends on factors such as the location, required electrical upgrades, and labor costs.

Do I need an electrician to install an EV charger?

Yes, EV chargers require professional installation by a licensed electrician to ensure safe connection and compliance with local codes. Lightility offers expert installation services to guarantee your EV charger is set up correctly and efficiently.

Are there incentives for installing EV chargers?

Yes, many states, utilities, and the federal government offer incentives such as tax credits, grants, or rebates for installing EV chargers. These programs can significantly reduce your installation costs, so it’s worth researching what’s available in your area.

How long does it take to install an EV charger?

The installation time depends on the complexity of the project. A straightforward Level 2 charger installation may take just a few hours, while a more complex installation requiring electrical upgrades or trenching could take several days.

Can I install more than one EV charger at a time?

Yes, installing multiple chargers at once can often reduce labor costs and future-proof your property for increased EV usage. Many properties opt for dual chargers or power-sharing options to accommodate multiple vehicles.