How often do you think about electric cars? If you’ve thought about them at all, you probably only considered the lower fuel costs, great tax credit and lessened impact on the environment of the cars, not the entrepreneurial opportunities in the industry.
Despite existing for decades, the electric car market is only now gaining traction in the United States. One of the most challenging barriers to the universal adoption of electric cars has been the fear of getting stuck in your vehicle without power. In a country obsessed with driving, “range anxiety” has been a substantial challenge to conquer.
But, in the last few years, that has started to change.
Conquering range anxiety
The world is moving away from the traditional gasoline-powered car. Electric vehicles (EV), a punchline for many car enthusiasts as recently as ten years ago, have never been more popular. In 2010, there were just 17,000 electric vehicles on the road worldwide. Fast forward to 2019, and that number increased to 7.2 million electric vehicles in use—including 1.4 million in the U.S. The trend toward electric cars has become so powerful that California and 11 other states have signed on to a program to ban the sale of new internal combustion vehicles by 2035.
To achieve anywhere close to that goal, the issue of range anxiety must be solved. The solution is simple: more electric vehicle charging stations. Electric vehicle charging station locations have been slowly added to our nation’s infrastructure in the last ten years, but most experts agree we’re behind the curve.
We may not have moved forward quickly, but the balance has started shifting. Electric car charging stations are more accessible, and as a result, drivers are overcoming range anxiety. In 2021, the market for EVs has never been better.
Demand for electric cars is increasing…
Right now, electric car consumers are motivated by a desire to lower their carbon footprint and to take advantage of the attractive tax incentive. Demand for EVs has never been higher..
Buyers of new hybrids, plug-in hybrids or fully electric vehicles are eligible for a tax credit of up to $7,500. The total amount of credit begins at a base of $2,500 and increases with every additional 5 kWh of battery capacity, maxing out at $7,500. A Chevy Volt with a 16 kWh battery, for example, qualifies for the full $7,500 credit. In 2016, 57,066 individual taxpayers cashed in on $375 million electric vehicle tax credits.
According to Cairn Energy Research Advisors, demand for electric vehicles will reach an all-time high this year. They believe global sales of EVs will increase by as much as 36% in 2021, topping 3 million cars for the first time.
…and so is the need for electric car charging stations
Of course, the more EVs on the road, the more electric vehicle charging station locations we need. This unprecedented growth means the market for building electric vehicle charging stations is poised for significant disruption in 2021, and there is both public and private money to be made.
Some drivers opt for electric car home charging stations or a portable electric car charger, but every user also needs access to public charging stations. Demand for electric car charging stations is expected to increase by almost half before 2027. A recent study by McKinsey noted that while global EV charging-energy demand was about 20 billion KWh in 2020, they expect demand to grow to about 280 billion kilowatt-hours by 2030.
Private sector support is on the rise
More and more companies are supporting this growing industry. ChargePoint, one of the first charging station companies in the U.S., started up in 2007 with just a handful of stations. Today, they’ve set up more than 30,000 spots worldwide (each with one or more charging stations) where electric car charging is available. These stops have cumulatively helped drivers avoid using more than 107 million gallons of gasoline.
But ChargePoint isn’t the only electric vehicle charging company anymore. Today, similar businesses are working side-by-side growing this vital industry. They are:
- Electrify America
- FordPass Charging Network
Each of these companies is supporting the availability of electric vehicle charging stations around the globe. But given the amount of need, the market is far from saturated. Opportunities to join the electric car charging station movement are out there. If you’re interested in building electric car charging stations locations, get a feel for the strength of the infrastructure where you live first by checking out this map of EV charging spots.
Incentives for growing electric car charging station infrastructure
The U.S. government has started shifting away from directly incentivizing electric vehicle sales and started focusing on the much-needed infrastructure to power this industry. Electric car charging station installation cost starts at about $3,000 for a level 2 station but can be as expensive as $25,000 depending on the type and amount of chargers. And who pays for electric car charging stations? The public and private sector share costs, but every EV charging station project is different, so the source of the investment varies.
As of February 2021, there are about 100,000 electric vehicle charging stations in the U.S., nearly a third of them in California alone. The City of Los Angeles has installed electric vehicle charging stations on 431 of their streetlights. But even with the growth in the last decade, there’s much more work to be done.
In April 2021, the Biden Administration doubled down on its commitment to alternative energy in its American Jobs Plan. This initiative consists of $15 billion to increase the nation’s electric vehicle charging station infrastructure. The goal is to build about 400,000 new charging stations, bringing the total to 500,000 stations across the U.S. in the coming years. Recently, the Electric Vehicles Freedom Act was introduced to create a network of public charging stations across the country. In a bid to truly eliminate range anxiety, the network would allow electric cars to travel anywhere in the U.S. without fear of running out of power.
At the same time, the U.S. Department of Energy is initiating a series of grant and incentive programs. These will allow state and local governments, in addition to the private sector, to begin the important work of increasing the availability of public electric charging. The goal is to improve accessibility by building electric vehicle charging stations in apartment buildings, public parking facilities and other areas close to the busiest roadways.
If you’re interested in contributing to the electric car charging station infrastructure, start by getting the coverage you need. Contractors building electric vehicle charging stations need special insurance. Fortunately, NIP group has you covered—literally—with PowerPro®.
PowerPro® by NIP Group includes general liability insurance all-lines coverage (including Workers’ Comp and Umbrella) for electrical contractors. This plan also features coverage enhancements explicitly tailored to the needs of commercial electricians.
Learn more about PowerPro® today by clicking here or calling 732-641-4179.