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Commercial EV Charging Infrastructure: Business Models for Commercial Landowners

Looking to install EV charging infrastructure? Read our breakdown of the different EV charging funding options available to commercial landowners.

business models ev charging

Installing EV charging infrastructure has a wide range of benefits for commercial land owners seeking additional income, to meet their sustainability obligations, to provide benefits to staff or customers, or simply to do their bit for the environment. Are you looking to install EV charging infrastructure? Read our breakdown of the different funding options available to commercial landowners and whether they are financially viable for your organisation.

950,000 electric vehicle (EV) drivers up and down the country are looking for places to charge their car. With the 2030 ban on petrol and diesel vehicles growing ever larger on the horizon, demand for public EV charging is only going up. In fact, in 2022 more than 265,000 battery-electric cars were registered, an increase of 40% in 2021. The latest figures estimate UK EV uptake will hit 6.5m by 2030.

Landlords and owners of industrial or commercial property are experiencing increasing demand for public electric vehicle charge points (EVCPs) at their sites, and the revolution is only getting started.

This blog aims to explain the funding options available to commercial landowners assessing EV charging infrastructure options for their retail sites. There are typically three options to choose from, each with pros and cons depending on your situation:

  • Fully Funded (100% funded by Mer)
  • Partially Funded (Hybrid)
  • Landowner Funded

However, before we get into that, let’s explore some of the benefits of EV charging for commercial landowners.

What are the benefits of EV charging infrastructure for commercial landowners?

We’ve covered why commercial landowners might install EV charging infrastructure in our in-depth guide. But some of the benefits include:

  • Attracting customers
  • Featuring your business on Google, Bing, Apple Maps and other EV charging apps
  • Brand differentiation
  • Increasing customer connections and loyalty
  • Supporting green business initiatives
  • Backing up your brand values and CSR commitments
  • Attracting and retaining both customers and employers
  • Getting ahead of the competition and embracing the change in motoring habits

 

What business models can commercial landowners install EV charging under?

 

Fully Funded EV Charging Business Models

Under a fully funded EV charging infrastructure business model, Mer would fund the entire capital outlay, typically encompassing hardware and installation costs, as well as costs associated with the connection to the grid (or district network operator (DNO)). Depending on the EV charging configuration we recommend at your premises, these can be as high as £400,000 for just the hardware at a large site, and more to upgrade your sites’ on-site electricity supply through connections to the grid.

business models ev charging

In this scenario, Mer would normally agree to a long-term agreement and offer a tailored commercial revenue model to the landlord depending on the scale and type of site or portfolio. These commercial EV charging business models can either be a percentage profit share model derived from the operation of the chargers, a base rent-only model (where an annual fee is paid to the landlord for each car charging space leased), or a higher-of model; where both a bay-rent and a profit share is agreed, and Mer pays whichever annual amount is higher to the landlord.

Mer will operate and undertake all maintenance, repairs, and upgrades for the duration of the agreement period. When considering the ROI of EV charging for commercial landowners, this option is often considered the safest as there is minimal investment from your side. For organisations looking for a relatively simple way to increase their passive income, this could be a great option, however, the returns will not be as high as they could be with either of the next two EV charging business models.

Partially Funded / Hybrid EV Charging

Under this EV charging business model, capital costs are shared between the landlord and Mer, at an agreed split of the costs – with the revenue sharing altered to reflect the landlord’s contribution. Again, Mer will undertake all operation and maintenance activities for the duration of the agreement period. This option requires more investment from the landlord but with a larger ROI. This also remains a ‘safe’ investment as the capital risk is shared across the partners.

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