EV Charging at Gas Stations: Will It Happen?
While still in its relative infancy, electric vehicles will eventually replace gasoline-powered vehicles on American roads. To get there, however, the US needs to invest in EV charging stations on a massive scale. Today, EV charging locations aren’t equally distributed across all areas of the country. For gas stations, it’s an opportunity to invest now and stay relevant later.
The Evolution of Gas Stations
The clock is ticking. According to Boston Consulting Group, as much as 80% of the fuel retail market will be unprofitable as soon as 2035. That means gas stations will be shuttered at a rapid clip in this decade, with 100,000 gas stations going out of business.
That means gas stations need to change their business model. To stay a part of American life, they’ll need to transition to EV charging and other services that serve as habitual stops.
Some existing gas stations with EV charging locations have expanded on previous trends of using a portion of their retail space for franchise-based chain restaurants. Once the purvey of fast food like Subway or A&W, you can expect to see a gradual transition to dine-in options that provide a comfortable space for visitors to eat and relax while their vehicles charge.
The dine-in experience is yet another evolution of the earliest transition from gas stations into convenience stores. Gas stations make a considerable portion of revenue by selling everything from food stapes to cigarettes. Gas stations evolved into neighborhood convenience stores in many areas, even becoming de facto grocery stores in rural communities.
Gas Stations Transitioning to EV Charging Stations
The next iteration of gas stations will take this transition a step further. First, however, they’ll need to invest in EV charging. Most experts anticipate gas stations focusing on Level 3 chargers. These offer as much as 20 miles of EV range per minute.
Choose Your Destination
Installing EV charging stations isn’t a sure bet. Installation can be costly and it’s a gamble for gas stations; how long will it take for EV charging stations to be profitable? There may be more payoff for “destination” businesses to invest in charging stations. Businesses like coffee shops, shopping centers, hotels and industrial parks that see customers, employees and guests stay for several hours may be a more convenient place to charge up. Daily drivers can often charge overnight at home, reducing or nearly eliminating the need of having a substantial number of gas stations in a city center.
Decision-makers rely on rebates, grants, and financial incentives to determine if EV charging will be beneficial. We can help.
There is also the prevalence of charging locations supported by private companies like Blink and Chargepoint, who have crafted partnerships with massive chains like Starbucks with tens of thousands of locations across the country.
Gas Stations vs. Government
There is also federal and state-level attention to EV charging stations. The Biden administration pledged more than $5 billion toward an effort to build 500,000 public charging stations with the goal of having an EV charging station every 50 miles on the highway.
That means gas stations will be competing against the upfront cost of charging station installation, a long-term ROI, and the risk of competing against an array of market forces that may make their own investment unnecessary.
An Age of Opportunity with EV Charging
EV charging will reshape habits for the first time in more than a century. As more Americans adopt electric vehicles, the infrastructure that supports fossil-fuel-based transportation will evolve. At Keen Technical Solutions, we’re working with forward-thinking businesses and organizations to adapt to new opportunities and the new habits they create. To learn more, contact Keen Technical Solutions today.