How to Develop an EV Charging Station Location Strategy

There’s an electric vehicle (EV) gold rush happening right now, with over 4 million EVs on American roads today. Due to rapid EV adoption in the United States, it's critical for businesses to have an effective EV charging station location strategy so they can meet the needs of EV drivers, whether they’re customers, tenants, or employees. By strategically placing chargers in optimal locations, you can boost company loyalty, drive revenue, and position your organization as a leader in sustainability. Let’s explore more.

Factors That Influence Ideal EV Charger Location

Selecting the ideal location for EV chargers requires a thoughtful approach. Different factors — ranging from driver behavior to onsite power availability — play a vital role in determining where and how to install your chargers.

Charging Use Case

One of the first things to consider when planning your EV charging station locations is the primary use case. Each business will have different customer needs based on the facility type and the typical time customers spend at that location. These factors can also determine the types of chargers you should install as well. Here are a few examples.‍

• Shopping Centers: Grocery store shoppers typically spend 30 to 40 minutes in the store, so Level 2 chargers — which, in this case, are used to "top-up" rather than fully charge a battery — are sufficient.
• Hotels and Multi-Unit Buildings: Drivers at these locations often charge their cars overnight. This makes Level 2 chargers, which can provide up to 200 miles of driving range over 8 hours of charging time, the ideal option.  
• Transportation Hubs: High-traffic locations like service plazas see lots of drivers making short pit stops. Quicker charging options like DC Fast (Level 3) Chargers are typically suited for parking lots at these locations.

Ultimately, EV owners are creatures of habit. Once they find a preferred charging spot, data shows they are likely to return again and again, which highlights the importance of providing a reliable and convenient charging experience.

(Related: Benefits of EV Charging Stations for Business)

Charging Demand

When planning your electric vehicle charging station location strategy, understanding the local demand is crucial. Public EV charging demand depends heavily on the number of EVs on the road, which varies by state and even by zip code.

Businesses should ask themselves, "How many of our customers, employees, or tenants drive EVs?" This information can often be gathered through surveys or even simple observation. For example, spending a day counting EVs at your location can give you a rough estimate of charging demand.

To plan for future demand, companies can also consult external data sources or partner with EV charging solutions providers who can assist with advanced demand forecasting.

Fleet Needs

For businesses with electric vehicle fleets, EV charging station location planning is mission critical. The size of the fleet, charging needs, vehicle routes, and whether the fleet is based at a single location or spread across multiple sites should all be considered.  

• ‍Fleet Size: Larger fleets require more charging network infrastructure, and businesses may need to plan for charging stations that can accommodate multiple electric cars simultaneously. ‍
• Charging Needs: Most fleet operators choose a mix of Level 2 charging stations for overnight charging with some DC Fast Chargers stations that can provide a quicker charge when needed. ‍
• Portfolio Size: If your fleet operates out of multiple locations, each site may need its own EV charging infrastructure to avoid bottlenecks.

Proper planning ensures that fleets can be charged efficiently, minimizing downtime and maximizing fleet availability.

(Related: Infrastructure Planning for EV Fleet Charging)

Power Capacity

Power capacity (or “maximum import capacity”) refers to the maximum amount of electrical load a site can safely handle. Without sufficient power capacity, businesses may face significant costs to upgrade their power supply, which could impact the viability of certain charging locations. In fact, infrastructure upgrades can represent a major portion of an EV charging project’s budget.

Businesses should assess the power capacity of their various sites before deciding on charging port placement. To do this, they can provide records of their sites’ electrical plans or conduct site walks and gather information on their main and subpanels to determine the power capacity available for EV charging.

Software can help by optimizing charge rates to avoid the need for costly upgrades. For example, PowerFlex’s adaptive energy management platform, PowerFlex X™, can optimize charging and potentially avoid costly upgrades by dynamically managing charging loads to ensure they never exceed a certain threshold.

What’s more, installing other clean energy assets like solar arrays can enable you to use emissions-free renewable energy to power your chargers — cutting your electricity costs and reducing your carbon footprint.

(Related: Adaptive EV Charging Load Management: How Drivers, Property Owners, and the Grid All Benefit)

Regulations & Incentives

Local EV charging policies are also important in deciding electric vehicle charger locations. Several states, like California, Washington, and Oregon, have regulatory mandates that require newly constructed buildings to equip a percentage of parking spaces with EV chargers.  

Many states offer incentives or tax credits for EV charger installations, which can significantly reduce costs. Utilities also offer their own incentives, such as rebates for charging equipment or make-ready work.

How to Determine the Best EV Charging Locations for Your Business

Receiving a project assessment from an EV charging solutions provider is the first step to set your business’ EV charging strategy. The point of these assessments is to estimate the scope, cost, and timeline of the installation. There are some actions you need to take to kick off these assessments, including gathering your site’s electrical documentation and past utility bills, making EV charging goals, gathering stakeholders, and creating a rough budget.

Beyond this initial assessment, there are additional steps your charging provider will take to validate if your site is a good candidate for an EV charging project. These include:  

Assess Site Feasibility

Your EV charging solutions provider should conduct an assessment that tests the technical and economic feasibility of EV charging at your sites. A feasibility study should also surface any potential challenges to charger functionality, such as the need for electrical system upgrades. By conducting this assessment upfront, businesses can avoid expensive surprises down the road and ensure that the site can support the necessary infrastructure for EV chargers.

Research Applicable Incentives & Policies

As mentioned, state and local regulations, as well as available tax credits, play a critical role in determining where to install EV chargers. Some areas offer lucrative rebates, which can significantly offset installation costs. Researching these policies in advance can guide businesses toward the most cost-effective locations for charging stations. (Take a look at our Policy Hub to see the latest incentive programs available in your area.)

Local regulatory policies and permitting requirements are also critical to understand for any large-scale EV charging project. Data from Electrify America found that the average time to complete the permitting process for DC Fast Charging stations in the U.S. is 65 days — and 81 days in California. For this reason, it's important to begin the permitting process well ahead of your intended project start date, which your charging provider can help with.

Create a Project Economics Model

An EV charging project economics model helps businesses understand the costs, potential revenue, return on investment (ROI), and net operating income (NOI) related to installing EV chargers. The model typically considers factors like equipment and power costs, revenue from charging fees, and projected utilization rates. A well-constructed model from an experienced EV charging solutions provider like PowerFlex can help businesses make informed financial decisions to help them optimize their EV charging locations.

Financing Options

Once your EV charging project’s economic model is complete, the next step is to decide how you'll pay for the system. The most straightforward way is a cash purchase where your organization commits capital for the procurement, installation, and operation of the charging equipment — keeping in mind that incentives can help offset these costs.

There are also several ways to finance EV charging stations, ranging from traditional loans to innovative service models like charging-as-a-service (CaaS). Some options require no upfront capital, but may result in paying more for the chargers over time. So, understanding the differences in financing options is important.

Loans

With a loan, your business borrows money to cover the cost of purchasing and installing EV charging stations. Once the loan is repaid, your business owns the equipment outright, which can be a great option for those seeking full ownership of their charging stations.

Pros:

• Complete ownership once the loan is repaid
• Long-term asset that adds value to the property
• Potential tax benefits and rebates

Cons:

• Requires upfront capital or financing
• Business is responsible for maintenance and operation costs

Leases

Leasing EV charging stations involves signing a contract with a finance partner to use the equipment for a specified period. At the end of the lease term, you can choose to purchase the chargers, renew the lease, or return the equipment. This option is ideal for businesses that want to avoid large upfront costs and prefer predictable monthly payments.

Pros:

• Low or no upfront costs
• Flexibility to return or upgrade equipment
• Predictable monthly expenses

Cons:

• No ownership during the lease term
• May be more expensive over time compared to outright ownership

Charging-as-a-Service (CaaS)

Similar to the leasing option, CaaS is an all-inclusive, subscription-based model where a provider handles the installation, maintenance, and software updates for your charging system. Businesses pay a fixed monthly fee, making it a hassle-free option for those who want to offer charging without owning or managing the equipment. Unlike a lease, there is no option to purchase the equipment at the end of the term.

‍Pros:

• Fixed monthly payments and zero upfront costs
• Turnkey solution with full maintenance and support
• Flexibility to scale as needs grow

Cons:

• No ownership of the charging stations
• Potentially higher long-term costs compared to other options

Understanding the pros and cons of each option can help businesses find the right fit for their financial situation.  

Let PowerFlex Help You Choose the Right EV Charger Location

With the proper location strategy, EV chargers can help you keep up with the demands of your customers and employees, increase traffic to your business, and reduce emissions around your property.

No matter your business model, PowerFlex can guide you through the entire charging system planning process, from site validation and modeling your project economics to installation and long-term asset management. Plus, with PowerFlex X™ and Adaptive Load Management®, we can help you save up to 60% on implementation fees by optimizing energy usage. Contact us today to get started on your EV charging project assessment.