Commercial electric vehicle charging stations can make your business more attractive to potential customers, and the benefits of providing charging stations will only increase as the EV market continues to grow. Between local and federal financial incentives, widespread adoption of standardized charging equipment, and a massive increase in embracing EV technology from the public, there’s never been a better time to add EV charging stations to your business.
Despite the financial incentives and array of options for commercial EV charging stations, you may find that EV charging stations cost more than the capital you’re willing to spend outright. If so, you’re not the only business who feels that way – which is why there are also some great programs for financing charging stations.
If you aren’t already familiar with equipment financing, check out our FAQs on equipment financing here. You might find that you’d benefit more from a lease than a loan, depending on the specifics of your business. For Michigan-based businesses, you can potentially get an even better deal through the MI Saves program. (Team Financial Group is a MI Saves financing partner, and we’ll explain what that means for you shortly.)
The Benefits of Adding Commercial EV Charging Stations to Your Business
If you already drive an electric vehicle, then you are part of a fast-growing group of owners who don’t need further convincing that EV is the way to go. And it probably won’t surprise you to learn that for gearheads across the nation, taking vintage vehicles and converting them to electric has become a popular new hobby. On top of that, the USPS has announced that it is on its way to owning the largest electric vehicle fleet in the world, with intentions to have over 60,000 Next Gen Delivery Vehicles on the road by 2028. At this rate, gas stations could soon be a thing of the past!
With such widespread adoption of electric vehicles, the need for charging stations is set to grow commensurately. Adding commercial EV charging stations to your business can provide you with numerous benefits:
- EV charging stations attract new customers (and talent): Not only will you have new customers who arrive because they need to charge their electric car but installing charging stations is a sign that you’re more forward-thinking than your competitors. That’s important because younger generations prefer to patron modern, tech-savvy companies. If your business doesn’t have a retail store (where customers would frequently visit), installing EV charging stations can still help you attract top talent for the same reasons.
- Increase the time your customers spend at your location – and how much money they spend: One business found that customers who plugged into their charging stations spent 3 times as much time in the store than other customers, and in doing so ended up spending more money.
- It’s good for the environment: Supporting green energy initiatives helps lower the carbon footprint of your business. In fact, if you combine your EV charging station installation with solar power installations, you could even end up canceling out any potential additional energy costs related to providing EV charging.
- Standardized technology makes it easier than ever: New commercial EV chargers must have a standardized connector type, per the latest from the White House. This means that the EV charging stations you install now will have the widest user base and best chances for longevity, with a standardized user experience. Previously installed stations may only work for one brand of car, or require higher installation costs to ensure flexibility of connection type, power levels, etc., so this is a great time to look at new charging stations.
- Promote the local economy: Commercial EV charging stations funded through the Bipartisan Infrastructure Law must be made in the USA, which supports local businesses and the greater US economy.
- It might not be as expensive as you think: Numerous grants, federal programs, state and local programs, tax credits, and more are available to help cut down on commercial EV charging installation costs and make financing easier and more affordable.
While electric vehicle supply equipment may be an exciting project for your business, the out-of-pocket cost – especially for DC fast chargers – can make you do a double-take. That means it’s worthwhile to learn about all the financial incentives available to you and your business.
A qualified financing partner can help you find every cost saving advantage in your local area, like the ones listed below.
Financing Commercial EV Charging Stations in Michigan
Team Financial Group is here to help you find the best opportunities for financing your commercial EV charging station. We can help you take advantage of many of the regional incentives, and as a MI Saves-authorized lender we can help you get a better interest rate on your clean energy projects.
Michigan Saves (Green Bank)
Any commercial property user or owner can utilize MI Saves for better financing for their clean energy projects, including EV charging stations.
A big benefit is that MI Saves has a network of authorized contractors to help you ensure the quality of workmanship, as well as timeliness of installation.
In addition, since MI Saves functions as insurance for independent lenders, your financing partner can offer you better interest rates on your charging station loan. This includes upgrades to existing electrical infrastructure, net metering system software, and related projects.
Charge Up Michigan Program
This grant is specifically for increasing the availability of DC fast charging stations across Michigan by providing funding to qualified applicants. To be eligible, an organization must simply host publicly accessible charging stations.
The program is currently prioritizing funding for projects in more remote areas of Michigan, to ensure there are no “unfulfilled nodes” or EV charging station deserts. The grant is for either 33.3% of the total cost or a direct match of what the electric utility is paying (up to $70,000), whichever is the lesser amount, for eligible EV charging equipment.
As with many grants, there is some red tape to jump through. Awardees are expected to provide monthly progress updates and site metrics, as well as documentation of expenditures. While larger organizations might have the bandwidth to meet these requirements, small to medium businesses might not have the resources to dedicate to detailed monthly reports.
If you’ve been turned down for this grant or can’t justify the resources to meet the program requirements, you can always turn to Team Financial Group for fast and flexible financing. Even without this grant, you may be able to take advantage of other incentives, like the recently extended Inflation Reduction Act tax credit for your commercial charging stations. Contact Team Financial Group to learn more!
Power Up Your Business With Shockingly Affordable Financing
Finding the right financing partner for your commercial EV charging station doesn’t have to be a challenge. Team Financial Group is well-versed in green energy projects like the DC fast chargers needed for the fast-paced electric car industry. We can help you right-size your commercial EV chargers for your location and find you the optimal financing to make the project affordable.
If you already have the project scoped out and just need some help with the EV charging station cost, Team Financial has the flexibility to get you what you need – we often can even get same-day approvals on your equipment financing loan.
Get in touch with us today for any questions about federal and local incentives for commercial EV charging station installations, or to talk about the different financing options that can help power up your business.
ChargePoint, Inc. (2015). Leading Retailer Partners with ChargePoint to Attract and Retain Loyal Customers. Campbell, CA: ChargePoint. Retrieved from https://www.chargepoint.com/files/casestudies/cs-retail.pdf