Charging Ahead: Unlock Opportunity With Electric Vehicle Chargers

Electric vehicles have engines powered by electricity instead of gasoline (McKinsey & Company). There are different types of EVs, including zero-emission vehicles (ZEVs), plug-in hybrid electric vehicles (PHEVs), hybrid-electric vehicles (HEVs), and fuel cell electric vehicles (FCEVs). Besides cars, there are other modes of transportation powered by electricity, such as electric bikes and scooters.

 

The current market for electric vehicles continues to increase, as sales in North America in the third quarter of the fiscal year grew 54 percent. In 2023, North American EV sales were to be a total of 1.6 million and expected to increase to 1.9 million units in the U.S. and 230,000 in Canada by the end of this year.

 

All of this certainly paints the picture that there is a market for electric vehicles. This is due to the collective push for EVs from the government and policy lawmakers, as well as a shift in consumer behaviors to strive for a more sustainable future.

 

In Canada, “Environment Minister Steven Guilbeault will effectively end sales of new passenger vehicles powered only by gasoline or diesel in 2035.” However, data on electric vehicle demand presents significant challenges for the industry to collectively meet the government’s mandate.

A recent study by AutoTrader found that the “purchase intention has declined.” It also stated that “In 2023, only 56 percent of car shoppers who did not own an EV were open to purchasing one for their next vehicle—down from 68 percent the year prior.” In addition, the survey indicated that buyers are avoiding the purchase of an electric vehicle due to the state of the economy, citing the high electric vehicle prices, interest rates, and of course inflation.

 

To address this concern, it was estimated in an economic article by Young & Fanjoy that “vehicle prices would need to come down by about a third to even half of what they are today, in relative purchasing power terms, for electric vehicles to be an affordable mass market.”

 

In the United States, there seems to be a slowdown as well, despite a record 1.2 million U.S. vehicle buyers choosing to go electric in 2023, according to estimates from Kellean Blue Book, a Cox Automotive company. There has been pushback from dealers who have many unsold electric vehicles in their lots, so much so that more than 3,000 U.S. auto dealers asked the Joe Biden administration to “tap the breaks.” Additionally, Tesla, a leader in the electric vehicle market, has indicated to investors that growth has slowed down in its electric vehicle sales.

 

 

A contributing factor to the slowdown in EV sales include how increasingly difficult it’s become to purchase an electric vehicle due to the state of the economy given the increased cost of living and the automaker’s focus on improving the driving range of EVs.

 

Another notable reason for decreased demand is insufficient charging infrastructure, which presents a challenge for owners of electric vehicles. The insufficient number of charging stations can turn car buyers off from purchasing an electric vehicle, as they’ll be likely faced with the difficulty of having accessible chargers available to use.

 

Canada and the United States have been facing a ton of developmental challenges when it comes to electric vehicle charger infrastructure, which is evident as it’s directly impacting demand and buyer support.

 

The current number of EV charging stations and ports in Canada is extremely low. A CBC news article reported that Canada will need between 442,000 and 469,000 public charging ports by 2035, depending on the number of at-home chargers, according to an estimate by Natural Resources Canada. As of Dec. 1, 2023, there are a total of 10,425 charging stations and 25,246 charging ports. Ultimately, this suggests that there’s a lot of work to be done to meet the government’s mandate that 100 percent of new vehicles must be electric vehicles by 2035.

 

In the United States, “there are “170,000 publicly available EV chargers across the country,” as reported by the White House. However, Biden-Harris administration set a goal of 500,000 electric vehicle charging stations in the United States by 2030. Those stations would, the White House said, help push Americans to feel more confident purchasing and driving electric vehicles and in turn help the country cut carbon pollution.

 

The lack of EV charger infrastructure is one of the more significant problems for the future of electric vehicles and meeting policymakers’ mandates. While the government turns to businesses to help build electric vehicle charging infrastructure, businesses must ask themselves if it’s a sensible business opportunity for themselves.

 

Building electric vehicle charging stations is a very lucrative opportunity for businesses. EV Connect reported that “EV owners were willing to pay up to $3 per hour for charging and 12 percent were willing to pay $4 per hour, even if it only costs them $0.75 per hour to charge at home,” according to a survey from E Source. The willingness to pay becomes even higher when it’s convenient and can help reduce drivers’ worries about traveling a far distance and running out of charge while on the road.

 

Specifically, the installation of electric vehicle chargers could be an untapped stream of revenue for self-storage businesses. This is because self-storage facilities tend to already have the space and capacity to build charging stations and can reap the benefits of offering them to electric vehicle owners. Therefore, on top of being known for renting storage space to individuals and businesses, your facility can be recognized for providing people the ability to charge their electric vehicles. There are several other perks that self-storage facilities and their customers can gain from having electric vehicle charging stations on site:

• Take A New Position – Installing charging stations at your self-storage facility can show your customers and visitors that your business is forward-thinking and innovative. Offering forward-thinking solutions also highlights to them that you care about the community in which your business operates and its residents.
• Improve Customer Experience – Self-storage companies can also significantly improve the overall experience for their customers. This is because customers can visit their self-storage unit and charge their EV at the same time, which is extremely convenient and timesaving.
• Promote Sustainability Goals – This one is a huge benefit, especially if your self-storage facility is currently promoting environmentally sustainable practices or partakes in being a more environmentally conscious brand. Installing EV charging stations at your facility can help your business shine like a beacon for consumers seeking brands that align with their “green” values.
• Drive More Traffic To Your Site – Offering an additional service, such as charging stations, can drive more foot traffic to your self-storage facility, not only current customers but new customers as well. This is a huge plus, as your facility can increase sales from the additional revenue generated from the use of the charging stations. You can also take this opportunity to have your staff cross-promote other services that your self-storage facility offers, such as rental space, moving trucks, and packing supplies.
• Receive Incentives From The Government – You can likely take advantage of any government funding and rebates when you install electric vehicle chargers. Although government funding and rebates depend on the country, state, or province that a business resides in, it can be a great perk for self-storage companies to look into and see whether or not it’s worth it to invest in this initiative.

A business that has taken advantage of the benefits of installing electric charging stations is Canadian-operated self-storage company XYZ Storage. Formerly known as All Canadian Self-Storage, XYZ Storage has operated in the self-storage industry for nearly three decades, serving the communities of Ontario. The company currently operates five Canadian self-storage facilities and has an additional two upcoming developments on the way. XYZ Storage’s mission is centered around helping individuals and businesses across Toronto and the Greater Toronto Area (GTA) make space in their lives through self- storage rental solutions, along with other additional services.

 

As a leader in the self-storage industry, XYZ Storage saw an incredible opportunity that aligns well with its values regarding operating sustainable and environmentally friendly services while helping to push forward the development of electric vehicle charging stations for Canadians.

At their Toronto Downtown facility (459 Eastern Ave.), which was recognized as Messenger’s 2020 International Facility of the Year Winner, XYZ Storage has taken a step forward in pushing the development and accessibility of electric vehicle charging stations for Canadians by installing charging stations at the facility.

 

The company’s efforts and commitments don’t stop there, as they continue the development of installing electric charging stations for electric vehicle owners who reside in the Toronto area. XYZ Storage has plans to install chargers at both of their up-and-coming locations on Dundas Street West and Bering Avenue. The self-storage company has partnered with Rick Brown + Associates to proudly design and launch self- storage facilities that not only serve as a second home to members of the community’s belongings but also offer services that promote sustainability.

 

“We’re honored to play a role in helping push Canada’s electric vehicle development efforts towards creating a more sustainable future. We also very much look forward to continuing making meaningful sustainable contributions along the way,” says Partner and Director of Operations Leslie Kellen.

 

XYZ Storage is certainly paving the way for other businesses to follow when it comes to ensuring there are enough electric vehicle charging stations available across Canada and the United States.

 

The future of electric vehicle chargers shows great promise to businesses, specifically self-storage companies looking to seize such a lucrative opportunity. With auto manufacturers and importers being required to meet the zero-emission vehicle regulated sales targets, the demand for businesses to invest in electric vehicle charging ports and stations is most certainly present.

 

So, what plan does the government have to increase the availability of chargers? The Government of Canada has a “Zero Emission Vehicle Infrastructure Program” in place to drive this initiative forward across the country. There will be three funding streams available over the next few years, a total of $680 million worth of funding to increase electric vehicle charging availability and hydrogen refueling opportunities. This program has led to Canada investing over $1 billion since 2016 to making chargers more accessible and electric vehicles more affordable.

 

To continue pushing the sales of electric vehicles, the federal government of Canada is offering Canadian vehicle buyers a rebate of $5,000 for fully electric vehicles and $2,500 for hybrids within certain price points.

 

Earlier this year in the United States, the Biden-Harris Administration announced $623 million in grants, which includes at least 500,000 publicly available chargers by 2030. According to the U.S. Department of Transportation, this is to help grow the electric vehicle charging network across the U.S.

 

“On Nov. 15, 2021, President Biden signed the Bipartisan Infrastructure Law, also referred to as the Infrastructure Investment and Jobs Act, which contains $7.5 billion in new funding for EV charging stations, makes EV charging infrastructure eligible for additional Federal funding programs, and provides funding for numerous other EV-related initiatives.”

 

With the government offering grants to businesses interested in growing the electric vehicle charging infrastructure, the adoption of EVs can become more appealing to the average consumer. In addition to growing the charging network for EVs, it’s important to note that creating affordable EVs for the masses to increase demand is a huge contributing factor to the success of widespread adoption and would increase the chance of meeting government mandates for the next decade.

 

In conclusion, the self-storage industry has the potential to make real and transformative changes in the electric vehicle industry. As the government pushes for the adoption of electric vehicles, the challenge of limited infrastructure presents a barrier to widespread adoption. Consequently, it is even more important that other businesses step in and contribute to overcoming this major challenge.

 

Self-storage facilities and other businesses can take advantage of grants and government funding as an easier point of entry into the business of providing electric vehicle chargers, while also benefiting themselves. However, it’s critical for businesses to do their research on what is available in their country, state, or province in terms of grants and funding to support this initiative before deciding to join this business venture.

 

Article Resources Can Be Found Here

 

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