According to the U.S. Department of Energy, between 2015 and 2021, the number of electric vehicle (EV) charging stations more than doubled in the U.S. from approximately 13,000 to 50,000. The International Energy Agency reports that after a decade of rapid growth, there are now over 10 million electric cars on the road, representing about 1 percent of the global car stock. For 2030, the Net Zero Emissions by 2050 Scenario projects 300 million electric cars on the road and they will account for over 60 percent of new car sales, compared with only 4.6 percent in 2020.
With such a surge in interest in the purchase of electric vehicles, having on-site EV charging stations is more important than ever as the numbers show. Yet, many hotels have yet to install them, missing out on a great opportunity to welcome a guest for a meal or overnight stay(s).
Knowing what types of stations to purchase and how best to optimize them most profitably can be intimidating to a hotel owner or operator. Green Lodging News conducted a Q&A with Mid-Cour EV Charge, LLC’s CEO Jim Vogt to help give you the best advice on purchasing and maintaining EV charging stations and what business models to employ to ensure the highest level of profitability.
1. Placing yourself in the position of a hotel owner considering the purchase of EV charging stations for the first time, what advice can you give regarding what to look for in EV charging stations as far as type and quantity to purchase? How do you know how many to purchase and what type(s) to purchase?
Although there are many EV charging manufacturers that have entered the market, as a hotel owner, you would want to compare several manufacturer’s spec sheets, and determine what the needs of your guest will be. For example, there are both Level 2 and Level 3 480V EV fast chargers. Level 2 EV chargers can be either wall mounted or pedestal base mounted. The most common Level 2 EV charging station is the 32A, however, in addition to the 32A (7kW) we offer both 48A (11.5kW) and 80A (19.2kW) Level 2 EV charging stations. The amps of the EV charging stations will convert into kW, which determine how fast the electric vehicle will charge. Rule of thumb is that an EV will charge 3 miles/per minute/per hour/per kW. Therefore, a 32A would charge at the rate of approximately 21 miles per hour. A hotel guest staying overnight and charging for 8 hours could extend his range by approximately 160 miles. The number of EV charging stations would be dependent on several things. How many electrical vehicles can your current electric panel support? Level 2 EV charging stations require a 240V outlet. Each “port” of a 32A EV charging station would require two 40A circuits. The location of the hotel: interstate, resort property or city and the number of guestrooms would be a factor.
All Level 3, 480V DC fast chargers require 480V power. Many properties do not have 480V power. The cost of upgrading to 480V might be prohibitive. However, if it is available, and the hotel would like a “quick” charge for their guests that come for lunch, dinner, group, or corporate meetings, we can provide 480V DC Fast Chargers ranging from 60kW up to 180kW.
2. Where on property does it make the most sense to install them.
The hotel owner would have to take several things into consideration. Where is the current electrical panel and what is the distance from the electrical panel in the parking lot and/or parking garage to where he would like to install the EV charging stations. No two installations are alike. If the hotel has a parking garage, the EV charging stations could be located within the parking garage close to the electrical panel to reduce the cost of the installation. Again, when locating EV charging stations in the parking lot, to reduce the cost of the installation, the hotel owner should consider both the location of the electrical panel and how convenient the EV parking spaces would be for the guests to access the hotel.
3. What electrical infrastructure is needed?
For existing hotels, the hotel owner would have to evaluate the capacity of his current electrical panel to determine how many EV charging stations the current electrical panel could support, or if the electrical panel needed to be upgraded. As I previously indicated, each 32A port requires a separate 40A circuit, however, depending on the number of ports, coupled with “power sharing,” the hotel owner’s existing panel might not need to be upgraded.
4. Is it easier for a new-build under construction to install these than a hotel that is already open?
Yes, in my opinion every new hotel either on the drawing board or under construction should access the number of EV charging stations, not only for today, but providing for the future. Many municipalities are beginning to implement ordinances requiring all new construction to provide for EV charging stations. Included within the ordinance is a “formula” that determines the number of EV charging stations that must be installed and that the electrical panel, based on the ordinance, is “EV ready” to install a “predetermined” number of EV charging stations at a future date.
5. What level of investment can a hotel owner expect and are there alternatives to purchasing?
Several factors determine the investment on behalf of the hotel owner. First, the number of EV charging stations, depending on the location, the cost of the installation, and whether the existing electrical panel needs to be upgraded. Mid-Cour, through a third party, has the ability, subject to credit approval, to offer the hotel owner an attractive financing package, covering the total cost of the installation, including network services.
6. What ongoing maintenance can one expect, and should that be the responsibility of the company installing the system?
All Mid-Cour EV charging stations come with a standard two year, parts only, factory warranty, which can be extended at an additional cost. Mid-Cour EV Charge has agreements with two of the nation’s largest network service providers. The network service providers provide the hotel owner with the software required to operate the EV charging stations. Through the network service provider, the hotel owner will be able to establish “categories” of EV drivers, i.e., anyone that is a member of the hotel’s rewards program gets free charging. This is a way of encouraging repeat business. Anyone that is not a member would have to pay a fee established by the hotel owner for the ability to charge their EV. In addition to establishing pricing policies, the hotel owner would be able to obtain detailed management reports for each EV charging station located at their properties. Software upgrades are preformed automatically through the network service provider. After the expiration of the warranty period, maintenance of the EV charging stations would be the responsibility of the hotel owner. At an additional cost, Mid-Cour EV Charge would be able to provide an annual maintenance program to assure the EV charging stations are functioning properly.
7. What incentives are available at the national and more local level to help recover the investment in EV charging stations?
Several local utilities in several states are currently offering rebates to their customers to help offset the cost of purchasing and installing EV charging stations.
8. Are you seeing hotels offer these as a free amenity? Or, as a fee per charge? What is the most common business model you are seeing?
Currently we are seeing both. Some large chains are offering it as a free amenity to their guests or to members of the hotel chain’s rewards programs. Through the Network Service Provider, the hotel owner can charge a fee to non-hotel guests for use of the EV charging stations. As mentioned previously, offering EV charging is going to attract hotel guests.
9. Can one use the stations as a place to advertise local or in-house businesses? In conjunction with a hotel or hotel company’s rewards program?
Some EV charging station manufactures do offer LED reader boards on their EV charging stations. In the fourth quarter, Mid-Cour will be introducing a 360kW DC fast charger with a 55″ LED screen which can be used for promoting the hotel or can be sold to outside companies. However, there are companies that we have the ability of partnering with that offer a media tower for both in-house and outside advertising.
10. Provide an example(s) of a hotel company or companies that are making it easy to find properties with EV charging stations—doing the best job at easing range anxiety.
There are several apps that one can download on your smart phone that will identify where EV charging stations are located, the type of EV charging station, if they are free or if there is a charge and the amount of the charge.
11. What are the top few things one should look for when considering an EV charging station supplier? What bells and whistles are important?
When purchasing EV charging stations, hotel owners should look at certain criteria; pricing, lead times, the EV charging station manufacturer, the warranty and equally as important, the Network Service Provider. It has been my experience over the last six years that most problems occur with the software, (Network Service Provider) and not with the hardware.
12. What must a hotel owner know when it comes to apps and making sure his or her property appears when a driver is seeking out a charging station?
Upon completion of a form, the Network Service Provider will activate the EV charging stations. Once activated by the Network Service Provider, the EV charging stations will appear on several apps which can be downloaded on your Smart Phone or, on newer electric vehicles, an on-boarding app shows the driver where all the EV charging stations are located. Several apps which are available include: Plug Share, AmpUp and EV Connect.
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