Summary
- EV charging stations in business parking lots can help businesses earn more money by attracting customers and increasing spending
- Research from MIT shows that opening a charging station boosts annual spending at nearby businesses
- A new charging station can increase spending at a nearby business by 1.4% in 2019 and 0.8% per year from 2021 to 2023
- The more EV charging infrastructure is added, the less it might entice customers to stop at a business
- Businesses that install EV chargers early are more likely to outsell and outcompete their competitors
Article
EV charging stations in businesses’ parking lots have long been believed to increase revenue by attracting more customers and encouraging longer stays. Recent research has confirmed this theory, showing that businesses near charging stations, particularly in lower-income areas, experience a significant increase in annual spending. The MIT study, based on data from over 4,000 charging stations and 140,000 businesses in California, found that opening a charging station boosts spending at nearby businesses by an average of $1,500 in 2019 and $400 between January 2021 and June 2023.
The study utilized anonymized credit and debit card transactions to measure changes in consumer spending, comparing businesses within 500 meters of new charging stations before and after installation. The results indicated that a new charging station increased spending at nearby businesses by 1.4% in 2019 and 0.8% annually from 2021 to 2023. While the percentage may seem small, it translates to thousands of dollars in cumulative spending increases, highlighting the economic benefits of installing EV chargers for businesses.
However, as more EV charging infrastructure is added and becomes more widespread, the impact on businesses may decrease as saturation of charging stations leads to lower utilization. Despite this, the annual impact of a charging station on surrounding businesses could still cover approximately 11.2% of the average infrastructure and installation cost of a standard charging station. Businesses that install EV chargers early are more likely to attract customers and outperform competitors, similar to the appeal of offering WiFi in the past.
While the research underscores the potential benefits for businesses in installing EV charging stations, it also raises considerations for the future as charging infrastructure becomes more prevalent. The decline in spending increases over time may be attributed to factors such as lower utilization, decreased spending post-pandemic, and a reduced number of businesses served by each charging station. Nonetheless, the study highlights the importance of considering the economic advantages of EV charging stations for businesses and the potential for diversifying income streams through informed business models.
Overall, the evidence suggests that EV charging stations have a positive impact on nearby businesses, increasing consumer spending and potentially covering installation costs over time. Businesses stand to benefit from the growing prevalence of EV infrastructure, particularly if they act quickly to install chargers and capitalize on the opportunity to attract customers. As the EV market continues to expand, businesses that prioritize the integration of charging stations may gain a competitive edge and enhance their revenue streams in the evolving landscape of sustainable transportation.
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