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For many businesses, developers, and municipalities considering EV charging solutions, the cost of entry seems insurmountable. This is especially true when potential purchasers consider the initial cost of hardware as well as any potential site modifications and then software, maintenance, and more on top of it. And, if considering fleet electrification, the cost of new vehicles and suddenly the dollar signs are just rolling. While that might feel like the full picture, it’s really not.
Is there an initial outlay? A capital cost? Yes. EV charging stations can range from $500-2500 for the hardware, plus potential additional costs. But it need not be prohibitive. In fact, there are quite a few programs out there, from rebates and incentives to grants that can help many organizations offset those initial costs. We’ll be discussing those in this blog.
Further, working with the right EVSE provider can help you maximize your site using existing infrastructure and the right EV charging platform management system (CPMS) can help you realize ROI from the start. Similarly, your EV CPMS and the associated charging app can provide additional revenue streams.
However, all of that gets decided prior to installation. If you research EVSE providers, you’ll want to consider one who can help keep costs down by being a turnkey solution provider as they have insights and expertise over every step of the process, including ensuring your site isn’t over architected.
Further, you’ll want to research what financial support you can get and there’s still plenty out there to be had.
Check out our EV Charging rebate finder here
In February of 2023, the bipartisan infrastructure bill provided $7.5 billion dollars in funding to support EV charging with additional billions set aside for clean transportation and the manufacturing of batteries for electric vehicles.
More recently, it was announced that $100 million would be made available for the express purpose of improving EV charging station reliability. The money has been allocated to help EV charging stations owners with non-operational EV charging stations replace their hardware. Grant deadlines for local governments are coming up in November so funds should be available for organizations in 2024.
Further, $5 billion was set aside for The National Electric Vehicle Infrastructure (NEVI) Formula Program which is designed to help states build out EV charging sites. 10% of those funds must be granted to states and localities to enable the strategic deployment of EV charging stations.
The programs are designed to work in stages, focusing first on improving reliability and then moving on to augmenting existing infrastructure and building more charging stations across the country. And, the one important caveat is that the EV charging stations must be accessible to the public.
It’s important to note that NEVI funding can be used on any portion of the project including site preparation such as utility upgrades, electrical connectivity, or other construction needs. The funds can, obviously, also be used for EV charging hardware or software. However, it’s also important to note that every state dispersing NEVI funds can set up their own state standards that may be different from the federal standards.
The infrastructure law also provides funding for the Charging and Fueling Infrastructure Discretionary Grant Program (CFI). These grants are divided into two funding categories: community and corridor grants. Federal funding cannot exceed 80% of the total cost for these projects.
Community grants are designated for publicly accessible charging stations that will help reduce emissions and increase charger density. Potential sites include: public roads, public parking facilities at buildings, schools, or publicly accessible parking facilities, even if owned by a private entity. These grants are intended to help support the Justice 40 initiative which aims to help provide EV charging infrastructure to underserved communities. Despite federal funding, community grant recipients are not prohibited from working with private entities.
Corridor grants are for installing EV charging stations along “DOT-designated alternative fuels corridors.” Alternative fuel corridors are nominated by state and local entities and provide for EV charging as well as other alternative fuels positioned along national interstate highways. Corridor grant recipients must partner with private entities which provides opportunities for private businesses to be a part of valuable infrastructure builds.
The infrastructure bill is fairly detailed, but does provide ample opportunity for both private and public entities to participate in building equitable and accessible EV infrastructure. Additional grant funding information can be found via the US Department of Energy’s site on “State Electrification Planning and Funding.”
Grants are not the only way to help fund your EV charging station installation and implementation though. There are additional tax incentives and rebates to help fund your project. Right now, beginning your EV charging journey may start with charging stations and infrastructure supported by EV charging incentives.
For example, the Clean Bus Program Rebates is designed to help public school districts, tribal entities, and other organizations that buy, sell, lease or contract school buses or bus services replace diesel buses or build EV charging infrastructure to serve those buses. There are, however, limitations, some of which include limiting applicants to 25 buses, covering only behind the meter infrastructure, and only allowing replacement of pre-2010 buses with newer buses.
Similarly, there’s the Alternative Fuel Infrastructure Tax Credit which provides businesses that qualify with a 30% tax credit, up to $100,000, for the purchase and installation of EV charging infrastructure. Credits must be claimed on federal tax returns and equipment must be purchased between January 1, 2023, and December 31, 2032.
Then there are the state incentives. Too numerous to list in full here, but the Alternative Fuels Data Center provides a full list of state level EV charging station incentives which range from assisting with charger installation to fleet electrification.
And, finally, there are incentives from utilities and private organizations. In many states, given the need for power, electric companies and utility providers are offering rebates and incentives for installing DC fast chargers, level 2 charging stations, and purchasing electric vehicles for fleet or commercial use. For example, in Florida, both TECO and Duke Energy are offering rebates for EV charger installation.
In short, there are options out there if your goal is to be part of the changes we’re seeing as we travel the road to EV adoption. Investments we’re seeing across the country from both public and private organizations suggest the change is coming sooner or later and many of them are interested in helping you make the shift and succeed.
If you’ve read this far, you’re likely pretty interested in starting an EV charging program or installing charging stations at your business or on your property. There’s no doubt that it can be a challenge and navigating funding opportunities can seem daunting. However, to get the most out of these opportunities, you’ll need to, first, understand your goals and your needs.
Some of the basics, such as “demographic” style information will be the first way you’ll be able to narrow your funding opportunity focus. What you want to avoid is a shot in the dark at funding options where you just don’t meet the requirements (and can’t find a way to do so). Your efforts, instead, should be focused on identifying EV charging incentives and rebates for which you are currently eligible.
You’ll also want to reach out to your local and state government as well as utilities to see what is available in your area as some of these opportunities are changing with new options arise and some sunsetting based on funding.
And, you’ll also want to consider your EVSE provider. Some companies offer deals, promotions, and incentives or have partnerships with existing entities that you can leverage for support as well.
In short, there are, really, a plethora of ways to help fund your EV charging goals and, with potential ROI, you can recoup additional costs through flexible business models. For example, NovaCHARGE’s powerful and flexible EV charging platform management system (CPMS), ChargeUP, allows you to manage charging fees at an unprecedented level (down to vehicle and driver) and set various rules to maximize your profit.
And, as a turnkey solution provider, we don’t outsource your project. From day one we start understanding your needs and goals, working from site analysis and installation through implementation and ongoing support. Whether you’re just starting to flesh out your project and are looking for expert advice or you’re ready to get started soon, get in touch with our team.