6 Important Factors to Consider for Profitable DC Charging Sites Selection

In the DC fast-charging industry, the potential is enormous, attracting many companies to venture into it. However, the high investment costs in this sector mean that careful consideration is essential during the investment decision-making process. Site selection is one critical area that requires a significant allocation of resources. The profitability of DC fast-charging stations is largely influenced by their location, which includes factors such as the surrounding environment, land quality, local regulations and permits, competition, and its potential. This article explores some core factors that influence profitability to assist operators in choosing better locations.

1. Analyzing Local Users

Before selecting an investment location, it is crucial to fully understand the local user demographics and their actual needs. For instance, today’s electric vehicle drivers are typically younger, highly educated, mostly male, and employed full-time. Finding locations with a higher concentration of such individuals will benefit the operation of charging stations. Although the electric vehicle market is growing rapidly, assessing the local electric vehicle ownership is still necessary. A lower ownership rate will prolong the investment payback period, which is not favorable for long-term operation. The specific needs of the target audience should also be considered to ensure that EV chargers installed have a competitive edge. In a highly competitive industry like DC fast-charging infrastructure, differentiation is key to success.

Understanding the differences between AC and DC charging is also crucial for meeting the specific needs of your target audience. For a detailed comparison, check out our blog on AC Charging vs. DC Charging: Detailed Comparison for EV Owners.

2. Surveying the Surrounding Environment

To ensure the daily utilization of charging stations, it is essential to consider the potential investment location’s daily, monthly, and annual traffic flow. Typically, two types of high traffic location options exist:

The first type is often on major transportation routes, such as popular commuter routes, busy intersections, intercity and cross-country roads, and highways. Drivers are highly familiar with these routes and are accustomed to finding refueling stations everywhere. By setting up DC fast-charging stations on these same routes, you can directly tap into a consistent and reliable high-traffic customer base. Owners of electric cars do not need to change their refueling habits, ensuring a seamless transition.

The second type is usually more relevant to daily life, such as restaurants and cafes, cinemas, shopping malls, gyms, sports venues, bars, hospitals, etc. These locations may not be on major transportation routes, but due to their entertainment and daily life relevance, they have a reasonably high traffic flow, and users typically stay at these places for some time. Operators should take full advantage of this feature to encourage users to charge their electric cars while enjoying entertainment, greatly increasing the utilization of charging stations.

3. Assessing the Competitive Landscape

The DC fast-charging market is in its early stages of rapid development, with numerous companies observing or already entering the market. Before determining the investment location, a comprehensive and detailed understanding of the local market is essential, encompassing not only the establishment and operation of DC fast-charging stations but also slow AC charging stations. If the fast DC charging market is already saturated, it is better to invest in other locations. However, if the local area has many AC charging stations and little investment in DC fast charging, the current location is worth considering.

4. Examining Site Conditions

After an initial screening of factors like transportation convenience, objective environmental conditions of the charging station need to be considered. For example, the local climate, the probability and frequency of natural disasters such as heavy rain or flooding. Additionally, geographical conditions like whether the ground is level can impact initial capital investment. Furthermore, it is necessary to survey the conditions of power supply and grid connectivity, grid capacity, and other fundamental requirements for charging station operation. Given the current market development, in most cases, the income from charging fees alone is not sufficient to sustain the long-term operation of the station. Operators may also need to consider the development of other facilities at the site, such as restaurants, cafes, supermarkets, to attract additional investors and generate extra income. It is also important to consider potential future expansion. Operators need to make an accurate assessment of market development and reserve sufficient grid capacity and station space to accommodate the growing market. It’s worth noting that locations that meet all these criteria are usually highly competitive, and operators need to plan their timing well to avoid being outpaced by other investors who might use the site for real estate development and other purposes.

5. Understanding Regulations and Permits

Electric vehicle charging, as an emerging market in recent years, is still in the process of exploring and gradually improving related laws and regulations, which can significantly differ from country to country based on their level of development. For instance, recently, the UK introduced new regulations that require opening up data and ensure price transparency. Compliance with relevant laws and regulations is a must for operators. If regulations are less stringent when entering the market, it may result in lower initial investment costs. However, tighter regulations in the future could lead to station upgrades and increased operating costs. In addition, before initiating new project construction, obtaining the necessary permits from local authorities is a must.

6. Considering Operational Staffing

Apart from the multifaceted investigation of the investment location, factors related to later-stage operations must also be considered. While ensuring that electric vehicle owners can easily and quickly reach and charge their vehicles, the charging station location greatly influences the recruitment and retention of operational teams. Whether for daily operational tasks or later equipment maintenance, a better location will make employees and engineers more willing and able to access.

Different business models can influence how you manage and staff your EV charging stations. To explore various business models and find the one that fits your venture, check out our blog on Exploring Different EV Charging Station Business Models: Which One Fits Your Venture?.

Last but not least, it’s worth noting that even if the expected location meets all these criteria, detailed planning is required for the preparation of initial construction, equipment procurement and installation, and later operation and maintenance. Inadequate preparation may result in high cost overruns, even in an excellent location. It’s better to compare times of return on investment for different locations from the outset, saving time and resources.

In summary, the success of DC fast-charging stations requires a balance of all these factors to achieve long-term profitability and provide convenient charging services to electric vehicle users. The location is of paramount importance to the profitability of DC fast-charging businesses, directly impacting profits, the composition of the customer base, and the competitive advantage of the products. Make sure to have thorough planning and preparation before investment.

Beny DC Fast Charging Solutions, Creating a Greener Future

Beny offers floor-mounted and wall-mounted DC fast chargers (also called level 3 DC fast charger), with power ranges from 20kW to 262kW, equipped with one to three connectors to meet various applications. Beny DC fast chargers feature intelligent charging technology, providing stability and reliability, meeting the demands of large-scale charging needs. They possess intelligent recognition capabilities, automatically identifying various vehicle models and their specific charging power requirements. Excellent heat dissipation ensures stable charging for electric vehicle owners during daily operations. Multiple protection mechanisms, such as CP abnormal protection, under-voltage protection, ground detection, leakage protection, over-temperature protection, and more, ensure the safety and reliability of the charging process.

To enhance user experience, Beny has redesigned DC fast chargers with a modular structure for convenient installation and maintenance. Furthermore, they are compatible with OCPP 1.6 protocol and equipped with a smart mobile application for data transfer, real-time monitoring, and management. Remote upgrade technology through internet connectivity allows firmware updates, ensuring the latest and best features. Support for various payment methods, including PayPal and offline transactions, provides a convenient, secure, and flexible payment experience.

Moreover, Beny DC EV chargers use eco-friendly materials and energy-saving technology, offering low power consumption, low noise, zero emissions, and adhering to green environmental principles. They are CE certified, complying with European market quality and safety standards, earning industry recognition.