How Parking Operators can expand revenue by jumping into EV Charging business?

The rapid growth of electric vehicles (EVs) forecasts a global count of 145 million by 2030, compared to 11 million in the 2020s. With 78% of EV owners lacking home charging options, parking operators have a golden opportunity to enhance Average Revenue per User (ARPU) by investing in EV charging facilities. The growing margins and demand in this sector underscore its potential profitability.

Business Model Considerations for EV Charging?

Selecting the appropriate EV charging business model is crucial:

• Ownership (Purchase): This option involves a substantial initial investment but ensures complete control over profits and operations.
• Operational (Rental): Operators can rent equipment, which minimizes upfront costs but requires sharing profits with the equipment owner.
• Financing (Leasing): This model offers an intermediate solution with regular payments, suitable for operators looking to balance investment with control.

There is also a hosting model, which involves setting up external charging stations on your premises, but it isn't typically the best fit for parking facilities. This model's main advantage—drawing additional visitors without upfront costs- may not align with the needs of parking operators who already have a stable customer base.

Regardless of the business model you select, utilizing a skilled third party to handle the installation and maintenance of charging stations often proves beneficial for most parking operations, unless you aim to expand your services beyond basic parking management and require direct oversight of your EV charging network.

Managing an EV charging setup involves numerous considerations, including applying for government incentives, ensuring robust power supply, and maintaining high-quality hardware. Employing a knowledgeable third party can alleviate these complexities, allowing you to concentrate on the primary aspect of your business - the parking facilities.

Choosing the Right Hardware?

Before selecting a vendor, it’s important to weigh the options between two main types of chargers: AC chargers, which are slower but less costly, and DC chargers, which offer faster charging at a higher cost and greater infrastructure demands.

• AC Chargers: Ideal for long-duration stays, these are cost-efficient and less demanding on power infrastructure.
• DC Chargers: Suitable for short stays with high turnover, requiring significant power capabilities.

Generally, AC charging stations are ideal for parking lots where vehicles stay for extended periods, typically 8–12 hours, due to their cost-effectiveness and lower power requirements. On the other hand, DC charging stations are better suited for commercial parking spaces where a fast charge is necessary. However, it is crucial to ensure that the power infrastructure at your location can support the higher demands of DC chargers.

Vendor and Technology Selection?

Broadly, any AC charging station vendor in your area that meets your standards for quality and fits within your budget could be a suitable choice.

Reliable vendors are key to deploying effective charging solutions. Here a few of them:

• Wallbox Chargers : well known for its wide charging station model range suitable for different operational needs.
• EO Charging : provides modern and reliable charging solutions particularly popular in the UK EV market
• ECOFACTOR : grown in Ukraine, a full-cycle company that designs, produces, and manages charging stations in Ukraine and the EU. Their charging stations have shown it reliability and antifragility in the most stressful conditions.

In addition to traditional charging stations, more scalable and cost-effective alternatives are coming from innovative and promising software and hardware startups. For instance, startups like Juice Serve partnering with XCHARGE North America on a hardware-level integration enabling seamless EV charging and payment via visual authentication.

Software and Application Needs?

It goes without saying that the EV charging business relies heavily on robust back-office software to manage its infrastructure, as well as a user-friendly mobile app that allows drivers to interact seamlessly with the charging stations.

Effective management of EV charging stations requires robust software solutions:

• Load Management: Essential for efficient power distribution among multiple stations.
• Payment Solutions: Simplified transactions through integrated payment systems like Google/Apple Pay enhance user experiences.
• Subscription Services: Facilitates regular usage and fosters customer loyalty through manageable payment plans.
• EV roaming (eRoaming): Service that enables EV drivers to access and pay for charging at any public charging station, regardless of the network operator or the service provider.

Additional features for your EV charging software that are not specific to parking but remain beneficial include:

• The capability to customize pricing for each station or connector and to designate them as public or private, which is particularly advantageous for workplace settings.
• Comprehensive reporting tools that track station utilization, electricity costs, and revenue generation.
• Support for a broad array of station models, ensuring full compliance with the Open Charge Point Protocol (OCPP).

SaaS systems or Custom Software Solutions?

Considering these requirements, selecting the appropriate charger management software for your parking business should be straightforward. If you outsource charger operations, your third-party provider likely has recommendations for the SaaS platforms they utilize.

Major providers like Virta Ltd or Saascharge offer API-first solutions that facilitate seamless integration with your current parking management systems and enhance visibility by adding your stations to a global charging network.

One of the latest research suggests that for ambitious plans involving the installation of over ~500 AC stations within five years, developing your own charger management software could be more economically viable. This strategy not only saves money over time but also allows greater flexibility in integrating third-party software, developing bespoke features for parking management, and optimizing the user interface and experience of your applications - all crucial for the successful operation of an EV charging business.

For extensive networks, custom software development can provide tailored functionality, offering long-term savings and operational flexibility:

• Tailored Solutions: Addresses specific challenges and user needs more effectively.
• Integration and Innovation: Allows seamless integration with existing systems and the introduction of innovative features.

Choose Wisely: Guidance in Optimizing EV Charging Solutions for Parking Operators

Parking operators stand to benefit significantly from the burgeoning EV market by integrating charging solutions into their business models. By strategically selecting hardware, software, and business models - and considering custom solutions where applicable - operators can enhance profitability and position themselves as leaders in sustainable transportation solutions. This approach ensures readiness to meet both current and future demands in this rapidly evolving sector.

If you choose the custom development way, my team and I are always ready to help you with creating top-of-the-market EV charging management software tailored for the parking business.

Codibly , with its expertise in software development and EV innovative solutions, can play a pivotal role in helping parking operators navigate the complexities of integrating EV charging infrastructure. With Codibly's tailored software solutions, parking businesses can streamline operations, optimize charging management, and deliver seamless user experiences to their customers.

By partnering with Codibly, parking operators can unlock new opportunities for growth and establish themselves as industry leaders in the evolving landscape of electric vehicle charging.

Interested? Just contact me and get professional advice for your specific Parking business use case.

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