Quick Links
The “as a service” model allows businesses to add necessary features and services without shouldering the cost of technology, hardware, software, or the human resources required to manage those features or services. For example, in the technology sector, service models often help companies stay secure and keep complex hardware and software up-to-date and running smoothly.
Across the board, the key factor is that “as a service” offerings are, typically, out of the box solutions for other businesses to implement. That doesn’t, by any stretch, mean they’re one size fits all, but the key component is that the costs are shifted from capital expenses to operational expenses where they become more predictable while guaranteeing a standard of service in a service level agreement (SLA).
EV charging as a service (CaaS) opens up EV infrastructure by adding charging stations for various applications such as retail, MDU (multifamily dwelling units), hospitality, and more. Even with grants and incentives, these businesses may find such an investment out of reach, so EV charging as a service allows them to reap some of the noted benefits of including EV charging stations at their location. The stations are, instead, owned by an EV charging supplier who maintains, monitors, and services the stations ensuring they function properly and reliably.
EV charging as a service sounds amazing, right? All the benefits of EV charging stations without any of the hassle? While there are significant benefits, which we’ll get to in a moment, that doesn't mean the process is without challenges.
First and foremost, because these businesses don’t fully own the stations, they also don’t earn the full revenue they’re capable of producing. For some EV charging stations with high usage, that can be an extra $2-4K a month. As the industry grows and as the demand for public charging grows, there’s significant potential for revenue, especially in high traffic areas at peak times. Consider a downtown city center parking lot with a handful of charging stations, and imagine the kind of revenue that might be capable of producing on a single Saturday night during peak hours when you can determine hourly or kW charging prices (as well as fees for remaining at the charging station when fully charged). Now, imagine that revenue either going to someone else or having to share that revenue, as is the case with some CaaS models. Plain and simple, it’s a missed opportunity.
That also means that some of the benefits of EV charging stations, like offering discounted charging opportunities to residents, loyal customers, employees, and more are off the table. Further, fast charging is off the table as most EV charging as a service includes only Level 2 charging (but there are benefits to that as well when it comes to dwell time). With more at risk in terms of profitability and administrative needs, ultimately, what this comes down to is that the supplier, acting as the station owner in this case, controls a large majority of the features. Those are, in fact, the features that make EV charging such an attractive addition to most properties.
Similarly, you don’t have complete control over the stations themselves which can create challenges when it comes to management and monitoring. In other words, if you’re working with a company that’s not capable of meeting SLAs, which are a fundamental part of “as a service” business models, then it’s just not worth the hassle. You’ll get all of the headache and frustration associated with angry drivers who are unable to use the charging stations found on your property. Further, you won’t have a ton of visibility into the stations and will, therefore, be unable to determine their charging status, monitor usage, or perform any quick maintenance that may improve performance.
While some of these issues are directly related to the oversight and management that many businesses don’t believe they have time for, lack of visibility and transparency can create some unforeseen issues that make EV charging stations, which you don’t own, on your property a challenge.
So why would anyone choose this business model? Well, the potential benefits, especially when you work with a reputable and reliable EV charging company, are significant.
We’ve written quite a few blogs regarding the benefits of EV charging stations for retail, municipal, workplace, MDUs, and more. The good news is that with EV charging as a service, you still reap most of the amazing benefits of ownership, and as you may suspect by this point, do so without having to plan, implement, cover the costs, manage, or monitor those stations.
In fact, depending on your business, you’ll potentially:
And still, perhaps the biggest benefit, is that all of these perks require no management or monitoring on your side. While EV charging platform management systems are, ideally, designed with the user in mind, management can be time consuming, especially on initial setup.
Further, monitoring for uptime and reliability, managing power loads, adjusting pricing, and other administrative tasks can be laborious, as can applying for incentives and grants to cover the initial set up and implementation costs. These aspects of EV charging initiatives can be time consuming, using up valuable resources needed to perform other business critical tasks.
With charging as a service, nearly all of the benefits of including EV charging stations at your location or business without incurring the potential drain on resources.
So is charging as a service the right option for you? The first factor, obviously, is whether EV charging station installation and implementation are beyond your reach at the current moment and, arguably, foreseeable future. If they are, but you still want to reap benefits, then charging as a service is designed specifically for businesses in your situation.
If you're interested in and invested in decreasing or off-setting your businesses carbon footprint while boosting your sustainability score and green reputation, then it may be a good option as well.
However, the most important factor for you to consider is the charging company or service provider you choose. As with any other service provider, doing your due diligence is vital. More specifically, you’ll want to consider:
While that list is not exhaustive, it’s a good starting point if you’re considering a way to bring EV charging solutions to your business.
At NovaCHARGE, we pride ourselves on our expertise and experience and are more than willing to answer any questions you may have regarding EV charging as well as any part of the process, from site analysis through installation, implementation, and ongoing services. Reach out to our team today and let’s chat!