- A study carried out by the Massachusetts Institute of Technology (MIT), which focussed on EV charging stations in the state of California, found that EV chargers can effectively pay for themselves, with the spending that such units bring to nearby businesses, not just the site on which the charger is located
- These results could encourage more landowners to install EV chargers, if these external revenues, outside of simple charging revenue, are also taken into account.
- On the back of the study, the authors have suggested nearby businesses splitting the cost of a new charger installation, so that all organisations reap the external benefits fairly.
EV chargers are encouraging spending in nearby businesses
The research paper, which can be read in full here, found that when a charging station was opened in California, each nearby businesses saw annual spending rise by around $400, between the period of 2021 and 2023 studied. Combining several businesses, and multiple years of spending, and it’s easy to see how installing an EV charging station can significantly help local businesses.
The group hopes that with the results, new methods of funding for local charging stations could be applied: For example, all businesses within a certain radius of a charging station, that will benefit from spending as a result of the installation, contributing to construction costs. Much like many fuel stations also have a retailer attached, this paper suggests EV charging stations could sustain similar operations. All this could help boost the growth of EV charging infrastructure, which could be particularly beneficial in areas outside of California, which have relatively lower levels of charging infrastructure.
However, with the research based solely in California, the researchers urged caution on applying these results to other states and countries. The group hopes that on the back of this study, other researchers will undertake similar surveys elsewhere, to see if this spending benefit remains true.
Co-Author on the Study, Shenhao Wang, added:
“The positive impacts of EV charging stations on businesses are not constrained solely to some high-income neighborhoods. It highlights the importance for policymakers to develop EV charging stations in marginalized areas, because they not only foster a cleaner environment, but also serve as a catalyst for enhancing economic vitality.”
