This guide will help you thoroughly analyze and conduct due diligence on an investment opportunity in commercial EV charging stations. To make a good investment, you need to consider market dynamics and location viability, and you must be confident in your projections, which include operational stability and profits, as well as have an exit strategy.
For due diligence purposes, we use 15 categories of questions about investing in commercial EV charging stations. These questions may not be all-inclusive; however, you can use them as a guide to cover the basics of your investment analysis.
After getting the answers to these questions, if your analysis yields a positive result, you can conduct further research to help you make your investment decision.
Feel free to contact us at NetZero Energy anytime with specific questions about commercial EV charging stations.
1. Market demand
What is the current demand for EV charging stations in the target area?
What is the projected growth of EV adoption in the region over the next 5–10 years?
2. Location analysis
Is the proposed location accessible and convenient for EV drivers?
What is the foot traffic and vehicular traffic in the area?
Are there competing EV charging stations nearby, and how are they performing?
3. Technology considerations
What type of charging technology (Level 2, DC fast charging, etc.) will be installed?
How future-proof is the selected technology?
What is the expected lifespan of the equipment?
4. Regulatory and incentive landscape
What federal, state, or local incentives are available for EV infrastructure development?
Are there any zoning or permitting requirements for the installation?
5. Financial evaluation
What is the total cost of installation, including hardware, software, and site preparation?
What are the ongoing operational costs, such as electricity, maintenance, and software fees?
What is the expected return on investment (ROI) and payback period?
6. Revenue streams
What pricing model will be used (e.g., pay-per-use, subscription)?
How will the station generate revenue during off-peak usage hours?
7. Partnerships and vendors
Who will supply the charging equipment, and what is their reputation?
Are there opportunities to partner with property owners, businesses, or local governments?
8. Competitive analysis
What differentiates this charging station from existing competitors?
How does the pricing and technology compare to competitors?
9. Scalability and expansion
Can the station be scaled to include more chargers or additional locations?
What infrastructure upgrades will be required to support future expansion?
10. Environmental and social impact
How will this investment contribute to environmental sustainability goals?
Is there public or community support for the installation?
11. Risk assessment
What are the potential risks or barriers to success (e.g., technological obsolescence, market saturation)?
How sensitive is the investment to changes in energy costs or regulations?
12. Maintenance and support
What are the terms of the equipment warranty?
Who will be responsible for ongoing maintenance and repairs?
13. Ownership and management structure
Will the station be wholly owned by the investor, or is it a joint venture?
Who will manage day-to-day operations, including customer support?
14. Customer experience
Will there be additional amenities or services available for users at the location?
15. Exit strategy
What are the potential exit strategies for this investment?
How easy will it be to sell the station or transfer ownership in the future?
Ranking Investments in EV Charging Stations
Suppose you have three commercial EV charging stations and investment opportunities to compare, all will be newly built. One in Oregon will be in the parking area for a restaurant on the Interstate. The second one will be in downtown Seattle. The third will be on native land near Anchorage, Alaska.
For each consideration, you will use a color code of green for positive answers, yellow for neutral weight, and red for challenging or negative answers. Each green will equal plus 1, each yellow will be zero, and each red will be minus one. Then, you total the score to compare.
Ranking EV Charging Stations Investment Score Sheet
Consideration | Oregon | Washington | Alaska |
1. Market demand | High traffic | Dense population | Limited |
2. Location | Excellent | Competitive | Remote |
3. Technology | DC Fast charging | DC Fast charging | Level 2 (overnight) |
4. Regulations | Commercial zone | Commercial zone | Tribal area |
5. Financial evaluation | High investment and good return | Medium investment and good return | Low investment with a modest return |
6. Revenue streams | Pay-per-use | Pay-per-use | Monthly billing |
7. Partnerships / Vendors | NetZero Energy | NetZero Energy | NetZero Energy |
8. Competitive analysis | The nearest competitor is 100 miles away | High competition | Exclusive (No competition) |
9. Scalability / Expansion | Could become chain | One location | Not easy to scale |
10. Environmental impact | No renewable energy is available at the site | Renewable energy (utility co. program) | Renewable energy (solar panels) |
11. Risk assessment | Low risk | Higher energy costs | Tribal regulations |
12. Maintenance | NetZero Energy | NetZero Energy | NetZero Energy |
13. Ownership | Investor-owned and operated | Crowdfunded joint-venture | Tribal partnership |
14. Customer Experience | High convenience, Cafe | Rental parking alternative | Local community support |
15. Exit strategy | IPO | Private equity sale | Sell to tribe |
TOTAL POINTS | 13 | 11 | 10 |
For an investment in EV charging stations to be attractive, it should score at least 10 points on this analysis.
In this example analysis, the preferred location for an EV charging station is the parking area of a restaurant on the Interstate. However, this location has one big negative: its connection to the power grid is not a renewable energy source. To get a perfect score, it would help to improve the plan to change to solar panels or wind energy as the power source.
The location in Seattle is promising but has already attracted competitors. Perhaps a nice selling point would be to include discounted or free overnight parking for EV-charging customers.
In summary, installing an EV charging station on tribal lands in Alaska is doable; however, the scale is small.
Working with NetZero Energy
Investors can expand their knowledge base by working with NetZero Energy. Our team has significant experience with successful EV charging station installations in the Northwest.
Why work with NetZero?
We understand the challenge of designing charging stations and creating minimum-performance specifications for equipment that can handle severe weather
We know how to evaluate the local power grid for connectivity issues
We understand the regulations and governmental incentive programs that are available
And that’s just the tip of the iceberg. No matter what stage your project is in, from the conceptual stage to the approved building plans, we can assist. Contact us at NetZero Energy to discuss your ideas and plans for commercial EV charging stations.