For electric vehicle (EV) charging providers, achieving profitability and long-term sustainability requires finding ways to reduce both operational expenditures (OPEX) and capital expenditures (CAPEX). In this blog, we’ll look at five things you can do decrease EV Charging station costs and cut OPEX and CAPEX so you can offer affordable pricing to customers, attract more drivers to your network, and minimize upfront costs.
1.Reduce field technical support costs and minimize charger downtime with proactive, remote, and automated issue resolution.
A key step toward reducing OPEX is effective management of EV charging network operations. The more you can do with software — as opposed to sending a field technician onsite — the lower your costs and the faster you can get EV chargers back into operation and generate revenue.
Driivz EV charging management software continuously monitors the state of chargers on the network, detects issues, and uses self-healing algorithms to automatically resolve up to 80% of operational problems without human intervention.
2.Decrease energy costs with smart EV charging and optimized energy management.
Smart EV charging decreases energy costs by monitoring, managing, and adjusting energy consumption in real-time to prevent single chargers or multiple-charger sites from exceeding peak load limits and incurring high fees and fines.
Driivz smart EV charging software uses advanced algorithms for energy management to balance energy supply and driver needs to ensure that EVs are charged at the lowest cost. It can also produce savings by supporting demand response and variable rate programs from utilities. And by preventing overtaxing the local grid, smart EV charging can eliminate the need for an EV charging operator to invest in costly local grid upgrades.
3.Generate your own energy with onsite solar renewable energy.
Another way to reduce energy costs is to supplement grid-sourced electricity with energy that you generate yourself using onsite renewable energy sources, typically solar panels. Smart EV charging software intelligently integrates this locally generated renewable energy into your EV charging infrastructure.
4.Use local battery storage to capture grid energy when prices are lowest.
A third way to cut OPEX is to equip an EV charging location with battery energy storage systems, particularly for locations where EV charging demand coincide with peak energy demand pricing periods. EV charging operators can store grid-sourced energy when the prices are lowest, for example in the late evening and early morning hours when demand is lowest or during daytime when lower-cost renewable energy is plentiful. This stored power can then be used for charging when the grid is strained or when utility pricing is highest. Batteries can also be used to supplement power required for ultra-fast DC chargers and avoid incurring penalties from demand surges on the grid.
5.Reduce CAPEX by leveraging government and utility incentives for building EV charging infrastructure.
Government agencies at the federal, state, and municipal levels in the U.S. and Europe offer a variety of incentives, rebates, and tax deductions that can offset initial investments in EV charging infrastructure. Governments recognize that the build-out of EV charging infrastructure is critical to widespread adoption of EVs and the climate benefits that they bring.
In the U.S., for example, the Alternative Fuel Infrastructure Tax Credit enables EV charging operators to recover up to $100,000 of the cost of purchasing and installing EV charging infrastructure. U.S. states offer additional grant funding under their implementation of the National Electric Vehicle Infrastructure (NEVI) program. At the local level, many municipalities offer incentive programs for the installation of public EV charging stations, and electric utility companies may offer incentives for public, workplace, or multiple dwelling unit (MDU) building.
Restraining EV charging station costs, OPEX and CAPEX is key to realize business opportunities in this evolving market. By leveraging advanced technologies for EV charging operations management and smart EV charging energy management, along with site-specific renewable energy generation and storage, EV charging providers can reduce OPEX, increase network reliability and availability, and deliver a great charging experience for EV drivers. What’s more, the cost of entering this growing industry and marketplace is significantly reduced by government and utility incentive programs designed to encourage investment by reducing CAPEX.