GO TO-U: Opportunity For New Charge Point Operators In California

California, a trailblazer in the adoption of electric vehicles (EVs), is witnessing a significant surge in EV sales, with a report showing that EVs accounted for 21.5% of all new cars sold within the state.

The Rise of EVs in California

The momentum behind electric vehicles in California is undeniable. By 2030, the state anticipates the need for about 1.2 million chargers to support an expected fleet of 8 million electric vehicles. The state's goals are ambitious, looking to have 250,000 chargers installed by the end of the next year, a stepping stone towards a more significant vision for 2035, which anticipates the need for over two million chargers to support more than 15 million light-duty electric vehicles. This escalating demand for charging infrastructure signals an opportune moment for hospitality properties to become charge point operators.

California ev charging

Government Incentives and Support

Navigating the financial aspects of installing EV charging stations can be daunting, but several government incentives are available to ease the burden. For instance, qualifying businesses in Northern California can receive significant support, with rebates of up to $8,000 per Level 2 charger and up to $80,000 for each DC fast charger. The Southern California Level 2 Incentive Project further sweetens the deal, offering rebates of $3,500 per connector or 75% of the project costs, whichever is less, making the initial investment more feasible.

The support extends beyond the local level, with the California Energy Commission launching a $38 million project focused on expanding EV charging in low-income and disadvantaged communities, a move that underscores the state's commitment to equitable access to clean transportation. Additionally, the Clean Transportation Program is investing in electric vehicle charging infrastructure, ensuring a robust network across the state.

But the incentives don't stop at the state level. The federal government is also contributing, with California set to receive $384 million over five years to construct a network of electric vehicle charging stations as part of the National Electric Vehicle Infrastructure program. These collective efforts present a significant opportunity for those in the hospitality industry to modernize their facilities and tap into a new, eco-friendly customer base.

Planning and Implementing EV Charging at Your Property

The first step in leveraging these opportunities is to determine the most suitable type of charging station for your property. This decision should be influenced by your guests' needs and the potential frequency of use. Once you have a clear idea of the type of charger required, the process of applying for available grants and rebates begins. Grants for EVs, including fuel cell electric vehicles (FCEVs) and plug-in hybrid electric vehicles (PHEVs), can offer up to $7,500 and $7,000, respectively, with the possibility of receiving an additional grant of up to $2,000 for the purchase and installation of a Level 2 EV charging station.

The journey to becoming a charge point operator also involves obtaining federal EV charging infrastructure grants. These grants can significantly reduce the financial barriers to entry, allowing you to offer this valuable amenity to guests while maintaining a healthy return on investment.

Creating a Revenue Stream

Introducing EV charging services at a hospitality property isn't just about meeting an emerging demand; it's about creating a profitable new amenity. When pricing your charging services, consider the balance between competitive pricing and the costs of installation, maintenance, and operation. Collaboration with established EV charging networks can provide additional benefits, including increased visibility and technical support.

By offering EV charging, properties can potentially increase their market value and appeal to a demographic that values sustainability. It's an investment that not only pays dividends in terms of revenue but also enhances the reputation of your property as a destination of choice for the environmentally conscious traveler.

EV charging services

Case Studies and Success Stories

While the concept of integrating EV charging into hospitality management is still relatively new, there are already numerous success stories illustrating the benefits. These real-world examples provide a glimpse into the potential for increased guest satisfaction, enhanced property appeal, and the financial gains associated with becoming a charge point operator. By examining these case studies, property managers can gain insights into best practices and the most effective strategies for implementing EV charging stations.

Positioning Your Property as a Leader in Sustainability

Beyond the direct financial benefits, offering EV charging stations can significantly boost the reputation of your property as a leader in sustainability. Guests are increasingly seeking out eco-friendly travel options, and properties that offer EV charging are seen as both progressive and responsible. This enhanced brand image can lead to increased bookings from environmentally conscious guests, higher guest retention rates, and positive word-of-mouth, all of which contribute to a stronger competitive edge in the hospitality market.

Leveraging Partnerships and Marketing Opportunities

To maximize the impact of your new EV charging stations, it's essential to leverage partnerships and explore marketing opportunities. Engaging with EV manufacturers, local businesses, and sustainability organizations can provide additional exposure and attract guests who are specifically looking for properties with EV charging options. Marketing your property's EV charging stations through your website, social media, and other channels will not only inform potential guests about the service but also showcase your commitment to environmental sustainability.

Bullet Points: Quick Steps to Get Started

To assist hospitality property managers in launching their EV charging services, the following bullet points outline the key steps to take:

  • Assess Demand: Evaluate your guests' need for EV charging and the potential number of EV drivers visiting your property.
  • Research Incentives: Investigate the various state and federal incentives and determine which ones your property qualifies for.
  • Plan Installation: Work with an EV charging station provider to plan the installation process, including location, number of chargers, and type of chargers.
  • Apply for Rebates: Submit applications for the identified rebate programs to help offset the initial costs.
  • Market Your Chargers: Promote your new EV charging stations through your property’s marketing channels, emphasizing your commitment to sustainability.
  • Monitor and Adjust: Keep track of the use of your charging stations and guest feedback to make necessary adjustments and improvements.

By following these steps and capitalizing on the incentives and growing demand, hospitality property managers can effectively introduce new charge point operations and establish additional revenue streams. With the right approach and resources, your property can become a sought-after destination for the increasing number of EV drivers on California's roads.

About GO TO-U

GO TO-U LogoGO TO-U was founded in 2017 to accelerate transport decarbonization by making the experience of driving and charging electric vehicles simpler, more comfortable, and more accessible. At GO TO-U we put users at the center of GO TO-U software solutions for EV charging management and operations so we can create a seamless experience for both charge point operators and drivers.



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