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Published by
Bianca Bivona
on
As the adoption of electric vehicles accelerates, businesses like car refill retailers and quick service restaurants are increasingly looking to provide EV charging stations for their customers. This presents an exciting opportunity to attract EV drivers, modernize your business, and generate multiple new revenue streams. However, choosing the right operating model for EV charging is crucial. Three options are typically available:
- Insourced Station Design Ownership Model
- Outsourced Turnkey Solution Ownership Model
- Site Host Model
Insourced Station Design Ownership Model
In the insource model, the retailer takes full responsibility for designing the station, selecting the hardware, choosing software vendors, overseeing building, permitting, installation, and then operating the EV charging stations themselves.
Building and operating your own EV charging stations offers the advantage of having complete control over the station design, selection, and operations, as well as the ability to capture 100% of the charging revenues. However, this approach comes with significant drawbacks. The upfront costs to develop the design, staff the team, and manage multiple vendors can be substantial.
Moreover, it requires technical expertise to install and operate the charging stations effectively. In this model, you would be responsible for all maintenance, repairs, payments, and ensuring driver satisfaction, which can be time-consuming and resource-intensive. Ultimately, pursuing this path may divert focus and resources away from your core business, potentially hindering growth and profitability in your primary area of expertise.
Outsourced Turnkey Solution Ownership Model
With the outsourced own turnkey solution model, the business outsources the full solution including design, installation and operation of the charging stations to a singular third-party turnkey charging provider.
Most retailers choose this option due to lower upfront costs and less headache. The provider handles everything end-to-end, including assessing the site, designing the system, installing the hardware, and providing ongoing operations and maintenance, allowing retailers to leverage the provider's EV charging expertise. Imagine snapping your fingers and having all your gas fuel retail operations, software, gas pump maintenance, fuel logistics, and loyalty programs completed: that is the value Electric Era provides.
Reliability is everything in EV fast charging. Make sure you select a turnkey provider with station uptime and reliability performance guarantees. Also, your business still owns the charging assets and dictates business objectives like loyalty programs, pricing, driver experience, charger brand presence and offerings, allowing you to capture 100% of the charging revenues. However, it's important to note that a turnkey model may offer less hardware customization compared to an insourced model, and retailers may be locked into the provider's hardware and software platform.
One retailer who trusted Electric Era to provide a fully outsourced turnkey solution says:
"Electric Era charging solutions were straightforward, simple, and effective. We have been happy with their reliability and the positive effect it has on our brand and loyalty with the Portland EV driver community”
Jonathan Polonsky
Chairman and CEO of Plaid Pantry
Site Host Model
Not ready to own the station yourself? No problem!
In the site host model, retailers rent out space in their parking lot to a charging provider who handles the installation, ownership, and long-term operation of the EV charging stations. This approach offers several advantages, such as zero cost and low risk for the retailer, as they do not need to make any upfront investment or handle any responsibilities related to running the chargers.
It is a completely hands-off solution where the retailer simply collects lease payments without diverting internal resources or focus from their core business. However, the retailer does not share in the charging revenues beyond the lease payments, which can be far more lucrative in total. Additionally, the retailer has minimal control over pricing, user experience, and other aspects of the charging service, as these decisions lie with the charging provider.
Another Electric Era customer shared their experience with the site host model:
"We loved the idea of offering EV charging but didn't want the hassle of managing or funding it ourselves. Electric Era's site host program was the perfect solution. They brought in a funding partner and handled all the details."
Derek Grafton
Vice President at Siskiyou Development Company, Inc
Choosing Electric Era as Your Partner
Whether you opt for an outsourced partner or the site host model, Electric Era offers a compelling solution, providing end-to-end solutions for each phase of your EV charging journey, making your life easier and allowing you to focus on your core business
In the outsourced own and operate model, Electric Era will work with you to select the most financially viable sites, install, and handle all ongoing operations and maintenance through our PowerNode O&M program, which includes 24/7 remote monitoring, preventative maintenance, and on-site repairs. We're so confident in our ability to keep your station running that we offer an industry-leading 99.5% annual uptime guarantee. From hardware solutions to site selection, rebates, implementation, energy management, driver experience, loyalty program integration, payments, operations, and maintenance, Electric Era is your one-stop ecosystem partner.
In the site host model, Electric Era can bring leading capital partners and guarantee flexible and fair lease agreements. We have relationships with leading asset managers who are looking to invest in premier charging sites, and once the right partner is identified, we'll manage the full lifecycle to get the stations installed and operational. We also make sure your brand presence is maintained on sites where you want this to be the case. Electric Era will be your trusted guide through the early part of your EV journey, helping you learn while watching, and allowing you to enjoy a completely hands-off charging amenity with no cost or effort.
“Electric Era has been an outstanding partner. Their deep expertise, advanced technology, and proactive support have allowed us to deploy a top-notch EV charging experience that's become a real differentiator for our brand”
Jonathan Polonsky
Chairman and CEO of Plaid Pantry
By partnering with Electric Era for your EV charging needs, you can provide this essential amenity in the simplest, most cost-effective manner. Our team of experts will guide you every step of the way to select the optimal solution for your business.
Ready to Deploy?
Electric Era can deploy stations in less than 24 weeks and looks forward to supporting you on your EV car refill journey from consideration, to completion, to charging. Reach out today if you are ready to see if now is the right time to start your EV journey.