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Energy Efficiency and Environmental Resources

Take Advantage of Vehicle Charging

This information was provided to BOMA/Suburban Chicago by Constellation

Whether you’re commuting to work, driving around town, or pulling onto the freeway, it seems like electric vehicles (EVs) are everywhere you go. Charging stations are popping up at workplaces, shopping malls, and public spaces, including in your neighborhood. If you own or operate a commercial property, you may be getting requests for EV charging from your employees and tenants. You may be asking yourself if EVs are a fad or a meaningful trend, and if an investment in EV charging is right for you.

This article can help you understand the emerging EV market and how offering EV charging could support your commercial property. We will take a look at the EV market growth and how the rise of EV vehicles is benefiting drivers, businesses, and the planet. It also provides an overview of charging equipment features, project economics, and web links for finding more information.

Electric Vehicle Growth

EV use is growing fast. In 2008, we saw the launch of the first mass-manufactured EV in the United States. Today, more than 360,000 of them are on the road.

What’s more, every major automobile manufacturer now offers at least one EV. There are over 26 different models available from over a dozen brands. Many leaders in the auto industry have also committed to converting a large portion of their business to EVs. Some of them are pledging to go all electric within a decade.

For the property manager, this momentum provides an opportunity to differentiate their building amenities. EV production has grown ten times in the last four years alone. Forecasts suggest that EVs will make up 4 to 15 percent of all car sales by 2020. Simply put, there’s no shortage of consumers.

As more EVs hit the road across the country, EV charging is one of the latest benefits tenants may consider when choosing a leased property.

Benefits of EV Charging

With such a great level of growth, EV charging stations may be in high demand among your clients. As a Property Manager, EV stations can help you attract high-quality tenants.

Sustainability isn’t just smart from a financial and logistical standpoint; it’s becoming a must-have for marketing to new customers. Millennials in particular look for environmentally conscious companies. Sixty-six percent of respondents to a 2014 study said they’d be willing to pay extra for sustainable offerings.

Fortunately, EVs offer an easy and convenient way to curb carbon emissions and save money on your energy budget. Widespread use may reduce carbon emissions by up to 50 percent. Each charging station can cut down on 10 metric tons of CO2 per year. Plus, drivers can go from 12 cents per mile to three cents and reduce their commute time in areas that have HOV lane access.

Workplace charging offers many benefits to Building Owners, Property Managers, employers, and employees. EVs can be a self-sustaining investment that adds business value, promotes environmental sustainability, and enhances your brand. For a project to be successful, it’s important for all stakeholders to understand the below benefits.

Benefits for Building Owners, Property Managers, and employers:

Allows Building Owners and Property Managers to attract and retain tenants

Allows employers to recruit and retain employees
Demonstrates your commitment to reducing carbon emissions
Supports corporate environmental goals
Provides credits towards green building certification pro- grams
Offers an additional source of revenue
Increases the value of the property

Benefits for employees:

Could generate more fuel savings by going from 12 cents per mile to 3 cents per mile or less (incentives lead to more savings)
Extends the range that employees can drive and pro- vides them more flexibility in their daily schedule
Allows commuters to enjoy a better driving experience and achieve personal sustainability goals

EV Project Economics

The costs for a workplace charging program include the costs for charging equipment, installation, maintenance, and supplying electricity. There are a growing number of government entities and utilities offering incentives such as rebates, grants, and tax credits. This can make it easier and even more rewarding to own an EV charging station. The links at the end of this article offer more information.

Installation costs can vary and are heavily influenced by the electrical and construction work needed for the selected location. The Energy Department’s EV Project determined that the average installation cost for a workplace charging station was about $4,000.

Charging station equipment costs are affected by a number of cost drivers. These factors could include the charging level, the number of charging ports, the type of mounting system, and additional features beyond the basic charging station.

The charging level refers to the power output, which also affects the charging time. Level 1 ($300-$1,500) is the least expensive. It provides about 2-5 miles of driving range per hour of charging. Level 2 ($400-$6,500) provides about 10-20 miles of driving range per hour of charging. DC Fast Charging ($10,000-$40,000) is the most expensive and enables rapid charging. It is generally located at sites along heavy traffic corridors and at public fueling stations. It provides about 60-80 miles of driving range per 20 minutes of charging.

In addition to the charging speed, there are a number of other features available. The most basic products have only standard safety features and status lights.

More advanced products have features such as:

Enhanced displays
Charging timers
Communications capabilities
Keypads
Enhanced durability and ergonomics

Higher-end products may have features like:

Payment card readers
Billing software
Advanced displays
Wireless communication
Automated diagnostics
Internal metering
Smart-grid compatibility and controllability

Some units have internet connectively and allow commuters to locate, reserve and pay for charging right from their mobile device.

The Illinois Department of Commerce & Economic Opportunity provides incentives for EV infrastructure and industry development. Rebates have historically covered 50 percent of equipment and installation (materials and labor) costs.

Various types of fee structures can help recoup power costs or provide a return on investment. Many charging station models allow customized access based on the user. Tenant employees may access charging free of cost while public users are required to pay an hourly fee. Networked chargers that are managed by a charging station company and require employees to pay via a membership or usage fees, provide building management with the option to leave the financial transactions to a third-party.

Modern EVs have a battery capacity up to 100 kWh and provide a driving range up to 300 miles. Assuming a power rate of $.085/kWh, a full 100 kWh charge would cost $8.50. Annual usage of a workplace charger will depend on the vehicles using the equipment and the charging capacity. Maximum potential power use from a Level 1 charger will total about 4,000 kWh/year or $340 at $.085/kWh. At Level 2, use could be as high as 13,000 kWh per year or $1,105.

Maintenance costs are typically minimal for EV charging equipment. This involves periodic inspection of hoses and connectors as well as maintenance of signage and ground markings. Periodic inspection, testing and preventive maintenance by a qualified technician may be recommended by the equipment manufacturer.

Electrifying Transportation

EVs offer workers a way to reduce both mileage costs and the impact to the environment. With the rapid growth of the EV industry, there is an immediate demand to expand the charging infrastructure. There are many benefits to Building Owners, Property Managers, employers, and employees. Now is a good time to consider hosting workplace charging and becoming a leader in the electrification of transportation.

As a Property Manager, you can take advantage of all the benefits that EV charging stations have to offer. For more information, contact the BOMA/Suburban Chicago Energy Committee.