How long will the payback period of the battery-swapping project take?

With the rise in oil prices, frequent motorcycle accidents, and environmental concerns, electric vehicles are gradually replacing traditional fuel-powered motorcycles as an important means of transportation. However, electric vehicle range anxiety is a major concern for many people. The birth of electric vehicle battery swapping cabinets is like installing an "energy refueling station" on electric vehicles, allowing users to enjoy long-range without worrying about battery level. Especially in urban transportation, logistics and distribution scenarios, battery-swapping cabinets are highly favored, and market demand is soaring.

The battery-swapping business model has diversified profit models for battery swapping and multiple channels to create revenue, including but not limited to:

1. Advertising cooperation revenue

The advertising space on the battery swapping cabinet is a sought-after opportunity, and collaborating with merchants to advertise can easily generate additional revenue.

2. Battery renting revenue

Users can rent batteries in the battery swapping cabinet to solve the problem of limited range, while you can enjoy rental income.

3. Value-added service revenue

Providing value-added services such as electric vehicle repair, battery maintenance, and replacement not only meets user needs but also increases your source of income.

Always remember the battery-swapping business is a heavy asset business!

As a turn-key solution provider of the battery-swapping solution,? Micergy always suggests investing with caution in many aspects:

1. Reliable equipment

Choose high-quality and stable electric vehicle batteries and battery swapping cabinet equipment, so less trouble on maintenance costs.

2. Dedicated Operation

Always pay attention to market demand and changes, flexibly adjust business strategies, and improve operational efficiency and service quality, in order to win the trust of battery-swapping users.

3. Accurate site selection

The location selection of the battery-swapping cabinet is crucial, as it should be located in a place with high traffic flow and convenient transportation to ensure a continuous demand for swapping batteries.

So how long will it take to make a return on investment for the battery swapping project? How long does the payback cycle take?

1. Return cycle: it's not fixed and determined by multiple factors

Firstly, we must understand that the payback period for the battery-swapping projects is not fixed. Every detail, from the size of the city, and the number of users, to operational costs, and battery and cabinet losses, may have a significant impact on the payback cycle.

2. Investment cost: product + operation

The investment cost of the battery swapping projects mainly includes product investment and operational investment. The cost of batteries, battery swapping cabinets is influential in terms of products. In terms of operation, it involves operating costs such as labor, electricity, and venue fees. The magnitude of these costs will directly affect the payback period of the project.

3. Profit model: Rent based

The main source of profit for the battery swapping projects comes from the rent of battery swapping users. The comprehensive profit margin maybe high, but the specific profit will be influenced by the city, population, time, location, and resources. Therefore, continuously optimizing profit models and improving profit levels are key.

Specifically, we will use the example of the Micergy 6-slot battery swapping cabinet to explain the profit model of the battery swapping project.

Assuming that the landing cost of a 6-slot battery swapping cabinet is about $2000, the landing cost of a 72V50Ah lithium battery pack is $500 per set, and each slot is equipped with an 1800W charger, it can fully charge one battery in 2-3 hours. A slot needs to be left empty for the convenience of users to return and replace their used battery, so the number of batteries configured for a 6-slot battery cabinet should be 5 pcs. Assuming that the daily battery swapping time window for riders is 12 hours (9am to 9pm), during this period, if all 5 battery slots are in a charging state, each cabinet can be fully charged with at least 20 battery packs within 12 hours. Theoretically, 5 battery slots can be fully charged with 20 battery packs, which can serve 20 battery swap. Riders usually need to replace their batteries twice a day to meet the daily range distance. Therefore, under normal circumstances, a 6-compartment battery swapping cabinet can meet the battery swapping needs of 10 riders. Assuming an electricity fee of $0.15 US dollars per kWh, considering a charging efficiency of 90%, the battery returned still has a capacity of about 20% (the battery will not be completely discharged), then a daily 6-slot battery swapping cabinet can meet the battery swapping needs of 10 riders. The daily electricity bill is: 20 72 35/1000 0.15 0.8/0.9=$9.6usd. Considering the efficiency and energy consumption of the cabinet control system, let's say the total daily electricity bill is 10 US dollars per cabinet, The average monthly electricity fee is $300usd (based on 30 days). Assuming that riders need to pay $80 for battery swapping services every month, without considering operation and maintenance costs, battery loss and damage costs, communication traffic fees, etc., the investment return period for a 6-slot battery swapping cabinet is (2000+500 15)/(80 10-9.6 * 30)=18.55 months. The normal battery cycle life is more than 8000 times, with 2 cycles per day, which can be used for 133 months. Throughout the entire life cycle, the profit is still considerable.

However, this is only a rough estimate. The length of this return cycle is also influenced by various factors. For example, the number of users will determine the output of a project, and the resources at hand determine the cost. Therefore, how to control costs, improving battery rental rates, and maximizing asset utilization are the key factors in shortening the payback cycle of battery-swapping projects.

Why choose Micergy as your partner for Battery-Swapping Solution?

Micergy specializes in designing and manufacturing battery packs and e-mobility solutions, we provide turn-key battery swapping solutions for electric 2&3 wheelers for both on-grid and off-grid scenarios, our electric 2-wheels are specially designed for most emerging countries with bad infrastructure like hilly and rough road terrain commercial rides and delivery with a mid-drive motor and gearbox, The mid-drive motor helps balance the weight of the vehicle's body and prevents it from floating when the vehicle is driving at high speeds, also the mid-mounted motor accelerates quickly and has strong torque, making it a good climber. it's not like the common low-quality electric 2-wheelers with hub-drive motors that can't climb or with a short lifespan, which will cause a lot of customers to complain, how can you imagine the scenario when the motor taxi driver can't climb? for rid-hailing and delivery scenarios, a robust design with a powerful motor is very important, less maintenance cost means making more money, which is not like the household gentle usage scenario. Besides, the Micergy battery swapping cabinet is also customized with bigger dimensions to load big batteries for a longer range, and a built-in roller in each slot can make it easier to complete the battery swapping process, last but not least, Micergy IoT EV batteries are packed with smart BMS and long-lifecycle tier-A LiFePO4 cells to guarantee the riding range and lifespan, which are extremely important for riding experiences and return on investment, besides, each Micergy IoT EV batteries is equipped with a global GPS positioning system, making it safer and more secure. It will trigger the battery alarm system to prompt the battery status when working abnormal and report the battery location, effectively reducing the risk of electric vehicle theft.

About Micergy

Micergy started lithium battery manufacturing in 2009 and provides custom lithium battery products for different sectors, including energy storage batteries, lighting electric vehicle batteries, and custom batteries for golf carts, Marine, RV, and Forklifts. Besides, not limiting ourselves to the R&D of BMS to protect the battery and lengthen the lifespan, relying on the competitiveness of the battery, Micergy further embraces the IoT technology and developed comprehensive 'Energy + IoT' solutions for various sectors to solve the affordability problem of product with a high upfront cost.

Welcome to visit www.micergy.com or drop an email to [email protected] to learn more about Micergy E-Mobility Solutions.

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