EV Charging-as-a-Service at a Glance: Install Now, Pay Monthly

One of the common barriers to installing EV charging is the price tag. Even with funding programs that reduce the cost of installation by tens or hundreds of thousands of dollars, the upfront cost of installing charging stations can feel difficult to manage.

For businesses faced with this dilemma, one great option is to explore EV charging-as-a-service (EV CaaS).

We have a complete guide to EV CaaS here, but here’s a quick look at how it works and when it’s a good option to explore.

What is EV CaaS?

EV CaaS is a model for paying for EV charging stations. Rather than the typical upfront capital expenditure associated with buying hardware and software, completing electrical upgrades, and installing the EV chargers, EV CaaS simply takes that complete cost and breaks it into monthly payments to last the duration of a contract (typically five years).

The main difference between EV CaaS and a typical purchase is that, with EV CaaS, the arrangement is essentially a lease. At the end of your contract, you’ll likely have an option to purchase your charging stations outright, but ownership of the chargers otherwise remains with the EV CaaS provider.

The benefits of EV CaaS

Over the course of an EV CaaS contract, you will pay the same amount as if you had paid upfront for your project. Still, the model comes with a number of significant benefits.

Some of the biggest ones include:

• No upfront costs: Everything you pay for with EV CaaS is split up into monthly payments over the course of years.
• Eligibility for funding programs: EV CaaS projects are still able to benefit from incentives, rebates, and other funding programs that will drive down the cost of your monthly payments.
• Hands-off approach: Typically, EV CaaS projects are handled entirely by the solutions provider—perfect for busy teams that don’t want to deal with the work of installing and maintaining chargers.

Finding the right EV CaaS partner

There are different approaches to EV charging-as-a-service, so it’s important to select a partner that offers terms that will be favourable to your business.

These include:

• Letting you retain the revenue generated by your chargers: Some providers arrange to take some or all of this revenue, but it’s a mistake to give this up.
• A shorter contract duration: Some EV CaaS contracts can be 10 years long or longer. There’s no need to lock yourself into such a lengthy commitment. Seek out arrangements that are about five years long or less.
• Handling maintenance, service, and support: If you’re paying for EV CaaS, it should include everything, including maintenance, service, and support for your team and the drivers who use your chargers. If an EV CaaS provider doesn’t commit to providing these, you’ll be better off finding a different provider who will (like SWTCH!).

With the right partner, an EV CaaS arrangement can be a powerful, convenient option for securing EV charging without any upfront costs. If you’re interested in exploring such an option, just be sure to partner with the right provider to ensure you receive maximum value and benefit from your ongoing investment in EV charging—including the revenue your chargers generate when drivers plug in.

Want to explore EV charging-as-a-service for your property?

Connect with our team today to learn about your options!