March 18, 2025
On average worldwide, one of every five new vehicles sold in 2023 were electric—and the electric vehicle (EV) market share has only trended upward since.
In the first few months of 2025, however, the Trump Administration’s decision to decrease funding for EV charging has raised questions about the future of these trends in the United States. Yet, the vast majority of our current charging network has been built out by private entities. And with so many EVs already on the road and rates of adoption not yet showing signs of slowing down, it seems clear EVs are here to stay regardless of the availability of charging grants. While federal policy may change the timeline, EVs are inevitable in our future.
Planning for this future, one of the main challenges with domestic EV adoption is building out an efficient, comprehensive network of chargers so that the needs of EV owners are met, and potential buyers are incentivized with a reliable power supply. Much of non-residential EV charging is available in the parking lots of commercial and retail locations. Yet, the developers responsible for their designs are often wary of the high up-front and maintenance costs of installing chargers. The ongoing debate on the economic benefit of commercial charging begs the question: can EV chargers alter travel behavior and trip generation, boosting profits for the nearby businesses?
When properly matched to user needs, the provision of EV charging has the potential to support multiple developer goals: building to sell can increase property value, and building to operate can yield a profit over time. Image: City of St. Pete on Flickr.
How Does Installing EV Charging Stations Benefit Developers?
Cost dominates many developers’ plans, and when undertaking an already costly construction project, it’s common to hesitate to tack on yet another big-ticket item. Compounding this, a perception prevails that EV chargers do not have the capacity to bring in more business or increase profit. Often, developers may only install chargers to fulfill an EV requirement, rather than making a choice for their own benefit.
To nudge new developments in this direction, cities from San Francisco to Boston have codified requirements for a certain number of parking spaces in new developments to install chargers or the underground conduits to make installation easier in the future, referred to as being “EV ready.” But do these requirements benefit developers, too?
When properly matched to user needs, the provision of EV charging has the potential to support multiple developer goals: building to sell can increase property value, and building to operate can yield a profit over time. Because charging stations built with private funds can charge a fee to use, developers can slowly earn back what they’ve invested. They might not be able to upcharge enough to make an imminent profit without drastically increasing prices, but in the long term, this extra source of income adds up.
EV charging stations may also influence where customers choose to shop. Many EV owners lack a home charger, either because they cannot afford to install one in their house, do not have strong enough electrical current, or live in a rental that does not provide chargers. Thus, public charging in commercial areas is essential for a whole group of drivers, which generates trips to charge. While some drivers may opt to sit in their vehicle for the duration of the charge, many will run errands in the surrounding area, bringing new customers more frequently to stores that might not be visited as much without an EV-specific clientele.
Moreover, anyone who drives an EV, regardless of whether they can charge at home, may need to top up the charge while out, depending on their vehicle’s range and battery size. In doing so, they’ll likely seek out destinations that have chargers available. Lacking EV chargers means that a business is missing out on catering to an entire group of customers who are factoring far more into their travel decisions than just preference.
Partnering with EV experts can make all the difference for a business’s efficient and cost-effective integration of chargers.
Making the Investment Worthwhile
EV charging technology is still new, and most companies are not equipped to make every decision regarding its application. Taking advantage of external expertise allows businesses to find the best way for them to uniquely integrate EV charging into their infrastructure.
Partnering with EV experts can make all the difference for a business’s efficient and cost-effective integration of chargers. Some developers partner with companies that specialize in infrastructural and energy management solutions. With the expertise of those experienced with adapting to EVs, developers can more accurately estimate how many parking spaces would need to have chargers and how much electricity would be needed to power them. For large enough developments, building a private microgrid can be a game-changing solution.
The most efficient way to make the long-term investment of installing chargers worthwhile is to optimize their utilization and turnover rates by matching the type of charger to the land use and expected dwell time. The feared prospect of chargers sitting idle can be resolved by carefully tailored planning.
Three types of chargers currently exist:
- Level I, which takes 40-50 hours to fully charge a battery electric vehicle (BEV) and 5-6 hours for a plug-in hybrid electric vehicle (PHEV)
- Level II, which takes 4-10 hours for BEVs and 1-2 hours for PHEVS
- Direct Current Fast Charging (DCFC), which takes 20 minutes to an hour to charge a BEV but is not compatible with most PHEVs.
While most drivers will not need to completely charge their vehicle from empty, the relative boost in charge should be enough to justify the task of hooking up the car.
For most retail businesses, DCFC or Level II charging is the optimal choice, because drivers will likely not spend more than one or two hours shopping. Level I chargers are ideal for locations where drivers will park all day, such as office buildings or amusement parks. If a car charges up before the trip is done, the driver either must repark their vehicle or a valuable charging spot is taken up. Aligning charging time with the average time a driver will want to spend at a location maximizes charger utilization and incentivizes charging during commercial activities.
The most efficient way to make the long-term investment of installing chargers worthwhile is to optimize their utilization and turnover rates by matching the type of charger to the land use and expected dwell time.
Charging into the Future
In the coming years, more types of residences, particularly apartment complexes, will be built with EV chargers, allowing a wider population to charge at home and reducing the dependency on chargers in retail areas. Thus, charging infrastructure may shift to be geared primarily toward long-distance travel, with chargers dispersed along major highways.
However, the EV aftermarket could continue to necessitate a network of nearby chargers. The projected prevalence of used and older EVs means more cars will have degraded battery lives and reduced ranges, making it important for short-distance travel locations to have chargers so nobody is caught out with a dead battery.
Even as other technological ventures evolve, electricity remains the leading force for sustainable transportation on a broad scale.
What About Other Fuel Types?
Momentum toward other fuel types is growing, such as liquefied natural gas (LNG) and fuel cells. LNG is highly chilled and stored as liquid fuel, which can work well for powering heavy vehicles like trucks. Fuel cells are similar to batteries but do not need charging—instead, vehicles need to be connected to a hydrogen network. LNG can.
Even as other technological ventures evolve, electricity remains the leading force for sustainable transportation on a broad scale. Expanding and strengthening our existing electric grid is cheaper and more feasible short-term than building a hydrogen grid. Electric power can be supplemented by hydrogen power in a localized hub-and-spoke network, which may be key for fleets of vehicles.
Continuing the Conversation
Charging stations are increasingly becoming everyday fixtures of our urban landscapes, and the vast majority of our current charging network has been built out by private entities. As federal priorities around EV charging shift, more control moves to the market to decide what will happen—and the market trend toward electric is already clear. After all, a bet on EVs is a bet on the future. Reach out if you’d like to discuss this further, and make sure to check out our YouTube video on EV charging!