As a self-storage owner, revenue generation is always in mind. We have covered several ways to increase revenue in blogs on our website. Here are just a few you can browse.
Today’s topic is adding an electric vehicle charging station to your existing self-storage business.
In September 2024, according to the US Department of Energy, there were approximately 250,000 electric vehicles in Florida. In the United States, there are “over 3 million electric vehicles.” (source) The growing number of electric vehicles might be a reason to consider a new revenue stream at your self-storage facility.
Electric Vehicle Charging
Electric vehicles require charging. As a result, charging stations are growing across the country. While most electric vehicles can hold a charge for up to 150-400 miles depending on the conditions of driving and the capacity of the battery. Individuals rely on their vehicles for safe transportation for work and fun. Charging becomes necessary when traveling long distances or if work keeps you in the car throughout the day. Drivers have to pay for charging to operate their vehicles, and they are often willing to pay for quicker charging, so a fast charging station can be a worthwhile investment. Let’s discuss the reasons why this might be a good opportunity for self-storage.
- Increase revenue from a new stream of income
- The influx of new customers who may need self-storage and charging
Increase revenue from a new stream of income.
When it comes to electric vehicle charging, it’s important to do research to determine if your location is a good option for charging. If the area is saturated with electric vehicle charging, prices will have to remain competitive in order to gain traction with customers and make the investment worth it. On the other hand, if there are few options available nearby, adding a charging station is an easy decision.
As the owner of the charging station, you can decide the pricing structure for charging. There are multiple ways to charge for the service, so it is important to consider what is competitive with the market and the competition. One option is to charge per kilowatt hour with a surcharge as well. If the kWh is $.15 then you would add a surcharge of $.10 to the price to generate income. People charging at your station would be paying $.25 per kWh to charge their vehicle.
Other payment options would include a startup fee or connection fee in addition to the kWh fee. The pricing structure will be up to the business owner in order to recoup their investment and generate income.
The influx of new customers who may need self-storage and charging
EV charging customers who find your electric charging station on a map may need the service, but they may find they also need self-storage at some point in the future. They will remember the charging station and the convenience it provides when considering whether to store their belongings there as well. Bringing potential clients in is always a great way to attract new customers. Additionally, if your business offers other services like boxes, packing supplies, or temporary office space while their vehicle is charging, you are providing solutions to problems they have.
Start-Up Cost & Revenue
Depending on the location of the self-storage business, installing a Level II charging station can range from $600-$12,700 per installation. A Level II charging station is the most common type of fast charger that is used for commercial purposes. There is a Level III DC Fast Charger, but it is not compatible with all-electric vehicles. The Level II is the most common.
There are tax incentives for installing an electric vehicle charger that might provide a tax advantage for a business. Once installed, the work begins to advertise your electric vehicle charging station and recoup your costs. The fastest way to get your electric vehicle charging station some use is to list it on Google Maps. This article provides step-by-step instructions on how to do this. Ultimately, the success of this project will depend on how well it is advertised. There are many ways to advertise online at little or no cost. The demand for EV charging is always increasing, so this is a great way to gain more traffic and invite more people to an existing business.
Some resources that might be helpful to businesses to learn more about this possibility can be found here.
How to Make Money With EV Charging Stations
Guide to Commercial EV Charging Stations
At Coastal Storage, we love to think creatively with clients about ways to grow their businesses. We love everything about self-storage, and our team of experts is ready to work with you to find the next investment. Call us today at 904-591-0140 to learn more about self-storage and our approach to success.