Electric Vehicle
The U.S. has pledged to reduce its greenhouse gas emissions to at least 50% below 2005 levels by 2030. To achieve this, one key initiative that the government has implemented is to require that at least half of all passenger vehicles sold in the U.S. be electric by 2030.
According to a recent Prosper Insights & Analytics survey, the leading reasons that respondents cited that they would not purchase an electric vehicle (EV), is their belief that there are too few charging stations, higher upfront vehicle costs, followed by the fear that the vehicle’s battery will run out before they reach their destination.
Prosper - Reasons For Not Buying An Electronic Vehicle
I recently spoke with David Bibby, co-founder and CEO of Hypercharge Networks, a leading provider of smart, EV charging solutions for multi-unit residential properties, commercial properties, and fleet operators. I wanted to get his insight on how businesses have not only stepped up to quell range anxiety but also how they are leveraging the emergence of EVs by adding EV charging to their offering and ultimately driving growth in their businesses with it.
Gary Drenik: What kinds of properties are showing the greatest demand for EV charging installations, and why do you think that is?
David Bibby: It’s clear that EVs are coming; in fact, we may have already reached “peak internal combustion engine sales.” Geographically, we’ve seen a lot of momentum for reliable EV charging infrastructure on the West Coast; California leads the U.S. with the most public charging available. Regardless of where you live, however, most EV charging takes place at home. But because there are still many residences that do not yet have adequate charging facilities, there is a unique opportunity for businesses to incorporate EV charging services into their offering now, and take advantage of the influx of EV drivers that is expected over the coming decade.
We’re seeing strong interest from mixed-use residential developments, but also from retail, hotels, offices, coworking buildings, and even companies setting up EV charging as an employee perk. Municipalities too are looking to stimulate their local economies and become more sustainable by adding EV charging to drive local tourism and economic activity.
Drenik: Do consumers expect to find EV charging facilities at most destinations?
Bibby: I think consumers' expectations are mixed depending on where they live, but also based on the destination. In smaller municipalities and outside of major urban centers, there tend to be fewer charging options. There are currently just over 50,000 charging stations throughout the U.S., significantly fewer than the 145,000 gas stations in the country. I think some of the most obvious destinations that drivers tend to expect to have charging are major hotels along popular highway routes, shopping centers, modern office buildings, community centers, government buildings, and any establishment that has sustainability as a part of its brand ethos.
Drenik: According to a recent Prosper Insights & Analytics survey, long charging times are another concern that non-EV drivers have. Is this a legitimate concern? What should properties and businesses keep in mind when making the decision to add EV charging to their offering?
Prosper - Long Charging Lines As A Reason For Not Buying An Electronic Vehicle
Bibby: We get this question quite often, however, both EV charging and battery technology are advancing rapidly, increasing range and decreasing charging times, so this is becoming less of a concern than it may have once been. There remains however a massive need for more reliable EV charging stations of all types to meet the increasing consumer demands. There are three levels of EV charging; Level 1 is the most basic and slowest, and uses a common residential 120-volt (120V) AC outlet. Most businesses opt for Level 2 and Level 3 EV charging. Level 2 can provide a top-up charge while EV drivers go about their daily tasks, and are also optimal for an overnight charge. They are flexible, affordable, and can typically be easily incorporated into existing electrical infrastructure. Level 3 chargers, also known as DC fast charging, are the fastest option available - they are often used by commercial fleets, and are also favored for many public installations. DC fast chargers can charge a battery, depending on its size and current charge, to 80% in about 20-30 minutes, making them a great choice for highways and rest stops as they get the driver back on the road quickly.
Another important feature that I believe businesses must look for is a provider that offers Open Charge Point Protocol (OCPP) compliant charging. This is something that Hypercharge Networks chose from day one for several reasons. It provides the property owner with access to the widest possible selection of hardware options in the industry and also means that it is interoperable with both our network and most third-party networks. There is no vendor lock-in of any kind. You can think of this as being similar to the earlier days of mobile carriers locking customers into their phone networks: we believe in open and interoperable charging networks.
Drenik: What businesses in the hospitality industry specifically are benefitting from adding EV Charging, and how?
Bibby: There is a significant opportunity for restaurants, hotels, and recreational facilities to offer EV charging because customers who do not have a suitable alternative at home or at work will plan to incorporate visiting establishments with charging as a part of their daily routines. It not only positions the establishment’s brand as forward-thinking but also can serve to drive revenue and increase the time spent at the location, while promoting economic activity for the entire neighborhood, attracting both locals and tourists to the area.
Drenik: EV charging for visitors to a restaurant or shopping center makes sense, but do you think this could also translate to online shopping? Do you believe that companies using EVs for their shipping and logistics could also attract more customers?
Bibby: Absolutely, there is a growing list of reasons that companies are transitioning their fleets to electric; first off, the capital costs are beginning to make more sense as more electric fleet vehicle options are coming onto the market and manufacturing costs are coming down, plus in many regions, there are government rebates and incentives to help accelerate the EV adoption.
Additionally, with the dramatic increase in fuel costs we’ve seen in the past year, consumers recognize that this ultimately trickles down to them in the form of higher prices. And what’s more, consumers are increasingly aware of their carbon footprint and will gravitate to purchasing goods from companies that use greener shipping methods. When a company is able to integrate EV fleet vehicles into its logistics, it allows the company to lower its environmental impact and operating costs, while also aligning with its consumers on their values. It’s a win-win for everyone.
Drenik: David, thanks so much for sharing your insights on EV Charging and how businesses are incorporating it into their operations and strategies.
