As the shift towards electric vehicles (EVs) gains momentum, fuel retailers have a distinct opportunity to evolve and succeed by investing in EV charging infrastructure. The recent changes in the US administration have led to a review of federal funding and created market uncertainty, prompting us to showcase alternative funding options that are still available.
Fortunately, various funding opportunities exist to assist fuel retailers in mitigating the costs associated with installing EV charging stations. This article will examine how fuel retailers can obtain and benefit from utility funding.
The Importance of EV Charging Infrastructure
The shift towards electrification is not just a trend; it’s a necessity. The United States is predicted to be one of the world’s leading electric vehicle (EV) markets, creating demand for 1.25 million public charging points by 2030, according to the National Renewable Energy Laboratory (NREL) [1]. Fuel retailers play a crucial role in this landscape, as they can provide charging solutions that integrate seamlessly with their existing operations while ensuring customer satisfaction.
Benefits of Early Adoption
By investing in EV charging infrastructure early, fuel retailers can:
- Control Charging Costs: Deploying their own chargers allows retailers to manage operational costs effectively.
- Enhance Operational Efficiency: Integrating charging solutions with energy management systems can lead to substantial savings.
- Attract New Customers: Offering EV charging can draw in a new customer base focused on sustainability.
Utility Company Rebates
Many state and local utility companies offer rebate programs tailored to support EV charging infrastructure:
- The PG&E EV Fleet Program (California) is a rebate which provides customers with up to 50% towards the cost of charging equipment, while all grid-side upgrades are also included. Fleets must commit to operating the unit for ten years, and supply data for five, while buses and disadvantaged communities are prioritized.
- The ComEd Business and Public Sector EV Program (Illinois) supports make-ready work for commercial customers installing chargers, but not the equipment itself. Rebates of up to $8,000 per port are available for Level 2 (AC), while 600kW rapid charging hubs could receive up to $600,000, prioritized on selected communities.
- PSE Up & Go Electric for Workplace (Washington) is covering 100% of the installation and maintenance cost for customers to add workplace charging, capped at $12,000 per Level 2 charger and 10 per property. Customer-owned infrastructure is capped at $2,000 or 50% of the equipment and installation cost.
- The Xcel Energy EV Charging Incentive Program (Central and Southern states) offers rebates to commercial customers for installing EV charging stations. Incentives cover a significant portion of installation costs for Level 2 and fast chargers. The program aims to facilitate the transition to electric vehicles and enhance accessibility to charging infrastructure in communities.
Other Complementary Schemes
- Alternative Fuel Infrastructure Tax Credit (30C): Allows organizations to claim 30% of depreciable costs against their tax bill, which can be combined with utility rebates for additional savings.
- Low Carbon Fuel Standard (LCFS): Programs in states like California and Washington offer credits for reducing fossil fuel use, providing financial incentives for fleets that deploy depot-based chargers.
- To find out the latest about NEVI – read our latest insight here.
As the demand for electric vehicle charging infrastructure grows, fuel retailers have a unique opportunity to secure funding to support their transition to electrification. By understanding the available funding sources and strategically planning their applications, retailers can significantly reduce costs and enhance their operational efficiencies.
At Konect, we are committed to helping fuel retailers navigate this complex funding landscape and deploy cost-effective EV charging solutions. Our expertise and partnerships can streamline the process, ensuring that you not only meet regulatory requirements but also capitalize on the growing market for electric vehicles.
For more information and to explore funding opportunities tailored to your needs, reach out to our team today.