I must admit openly, I have been spoiled by the simple payback of sustainability. With some energy efficiency upgrades having less than a three-month payback, I can make upgrading to granite look like a no-brainer. As you can see, promoting sustainability measures has regrettably made me arrogant. It seems serendipitous that EV charging stations are here to restore my humility.
As we continue our three-part discussion of EV charging stations, we sustainability practitioners need to brace ourselves because, if we think we are going to install an EV charging station and have a simple payback, we are in for a letdown.
If you install an EV charging station with the intention of charging per kWh and having your residents share the station, then brace yourself for disappointment. Once you have calculated in the cost of the station itself, the station installation, the monthly subscription fees you pay to the provider for a smart charging station and the ongoing electricity expenses, the simple payback of the charging station can exceed fifteen years. This is well past its useful life. (Think about it, how many of you have a smart phone that is fifteen years old?)
The payback of an EV charging station can be better if you treat it as a premium parking spot. However, if a resident is paying for a premium parking spot, he is going to park there and will not be willing to share it. This significantly reduces the number of residents who can use the station and most likely will create antagonistic relationships between residents if other residents try to sneak in a charge.
So how do we think about EV charging at our properties? Try to embrace the pain and know that you are not going to get more rent or a monetizable amenity when you install a charging station. Think of the charging station like you do your pool or fitness center. These are amenities that you cannot overtly charge for but which are part of what your property needs to offer to be considered Class A in certain markets.
The charging station is a signal that your property is loaded with amenities that your residents want. Yes, even residents who do not drive EV’s think properties should have EV charging stations because they like the idea of it. This is similar to how many more of your residents like the pool than use it. The EV charging station represents options to your residents; they could buy EV’s if they wanted to and not have to move. That freedom of choice adds luxury value to your property, even if the cost is a stone-cold loser.
