5 EV charging pitfalls for c-stores to avoid

Business


Electric vehicles are becoming more prevalent on U.S. roadways, and that’s pushed many convenience store operators to consider adding chargers, if they haven’t already begun the process. 

EV chargers allow c-stores to expand their role as fueling stops, and the amount of time that even direct-current fast chargers — the sort of EV chargers that can charge a car to 80% in under an hour — require gives c-stores a few more minutes to tempt drivers with other offers.

But in the budding world of public fast chargers, there are plenty of reasons for c-store operators to be concerned and plenty of issues to be aware of.

Some problems, like the quality of cybersecurity at chargers, are in the hands of the vendors who need to meet certain standards, and not the retailers who installed them. And how profitable EV charging is may be both near-term and long-term remains up in the air. 

Yet there are other pitfalls retailers can learn about and plan for, experts say, as c-stores wade into the world of EV charging.

Wrong place or wrong time

The biggest potential pitfall for c-store companies is building EV chargers before a specific market is ready for them. 

“Probably Nebraska, you don’t need it so much,” said John Eichberger, executive director of the Fuels Institute, a nonprofit advocacy group focused on transportation energy, in an earlier interview. “But if you are in Florida or New York or even Texas, there’s certain markets where [demand is] pretty strong.”

Because of the expense of putting chargers in, as well as the space they take up on the forecourt, putting in stations that generate little to no returns could be a big burden, especially for smaller stores.

Right now, the most important thing for retailers to ask is if their sites are right for EV charging at the present time.

“Initial siting and location is the key to profitability,” said Michael Hedges, vice president of sales for Power Management Co., a specialized energy consulting firm and product developer, in an email interview.

High startup costs

Even if the store is in an ideal location to tackle EV charging, the chargers themselves are still a big investment. DC fast chargers cost tens of thousands of dollars per unit.

“But the station itself isn’t necessarily the biggest cost,” John Voelcker, who covers EVs and analyzes the industry for Car and Driver and other outlets, wrote in an email interview. “That may be the electrical service, the trenching and underground cabling, and other site work.”  

Mario Tama via Getty Images

 

And once the chargers are online, surges in use can cause big increases in demand charges — a fee customers pay to maintain the electric infrastructure, based on peak usage — so one high-demand day could bump up that fee going forward.

There are ways for companies to mitigate some of these costs. Stores in certain locations may be able to apply for National Electric Vehicle Infrastructure (NEVI) program funding, if they meet the guidelines like operating in approved areas and having a site with a lot of amenities. Not all sites or EV chargers will require extensive electrical service upgrades. Battery-assisted chargers can avoid the problem. There may also be assistance available from government sources, or from manufacturers.

“Some EV manufacturers allow you to limit or control the charging rate on their equipment to manage utility expenses, particularly demand charges that can make up 30-50% of a company’s energy bill,” said Hedges.

Sites not set up for EV customers

Unlike filling a tank with gas, charging an EV can currently take up to an hour or more. This can leave the driver with some time to kill. 

“That’s a totally different customer, that has totally different needs,” said Mike Lawshe, president and CEO of store design firm Paragon Solutions, in an earlier interview. “And I’m not just talking about the fuel. They have an extended period of time on site.”



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