EV Charging for Your Property: Own It or Lease It Out?

As a property owner, you're constantly looking for ways to enhance your asset's value, attract more tenants or customers, and generate new revenue streams. With EV sales increasing by 10-11% year-over-year, installing EV charging stations is becoming an increasingly attractive proposition.When it comes to implementation, you essentially have two main paths: owning and operating your own EV chargers or entering into a ground lease agreement with a Charge Point Operator (CPO).

Here, we break down the pros and cons of each to help you decide what's right for your property.

Owning EnergiSpot EV chargers on your property is a win-win proposition

Option 1: Owning and Operating Your Own EV Chargers

This approach puts you in the driver's seat, giving you maximum control and potential for direct revenue.

The Upsides:

• Maximized Revenue Potential: You set the charging fees and keep all the revenue. This can be a significant income stream as EV adoption grows. At EnergiSpot, we help property owners optimize charging revenue by monitoring utilization rates and trends to adjust fees based on real-time time of use and demand data.

• Increased Property Value: EV charging infrastructure is a highly desirable amenity, boosting your property's appeal to eco-conscious tenants, residents, and customers, potentially leading to higher rental rates or resale value.

• Full Control: You decide on the type of chargers and can customize the branding and user experience. This allows you to tailor the service to your specific property and target audience.

• Indirect Revenue Streams: Beyond direct charging fees, EV chargers can attract more foot traffic to retail properties, extend customer dwell time, and even justify premium parking spaces.

Other Benefits that Come with Pride of Ownership:

• Brand Authority: When the chargers are yours, every kiosk, stall, and screen is a brand touchpoint you can curate.

• Authentic ESG Signalling: Property owners that capitalize on low-carbon infrastructure gain credibility by acting, not just marketing.

• Programmable Perks: Ownership lets you issue charging vouchers as signing incentives or bundle discounted off-peak charging into green leases.

• Community Relationships: Hosting public chargers under your banner can position you as a community partner and your property as civic infrastructure.

• Data Sovereignty: Raw EV charging data is yours to plug into predictive analytics for retail heat-mapping or parking optimization--insights that ground-leased CPOs keep locked behind NDAs.

• Long-Horizon Asset Stewardship: You dictate stall placement, bollard design, and landscape integration so chargers enhance--not clutter--curb appeal. This architectural autonomy and control sustains property identity and value on your terms. Ownership also means you can relocate chargers on your schedule with no termination fees or exclusivity carveouts.
  

Mitigating Potential Downsides:

• Upfront Investment: The initial cost of purchasing and installing EV chargers, especially DC fast chargers, can be substantial and may require electrical infrastructure upgrades. However, you may be eligible for various federal, state, and local tax credits, grants, and rebates designed to encourage EV infrastructure deployment, offsetting initial costs.

• Operational Responsibilities: You may be concerned that the responsibilities of operating EV chargers will distract from your core business. At EnergiSpot, we alleviate that burden by taking on 100% of the responsibility of customer support, payment processing, maintenance, and troubleshooting. We even help you coordinate repairs in the unlikely event on on-site repair is needed.

• Risk of Obsolescence: Technology is evolving so there is a risk that your chosen chargers could become outdated, requiring future upgrades or replacements. EnergiSpot offers future-ready EV chargers--including 40kW, 180kW, 240kW, and 350kW DC fast chargers--that scale with the pace of technology.

  
  

Option 2: Ground Lease to a Charge Point Operator (CPO)

This option offers a more hands-off approach, leveraging the expertise of a dedicated EV charging company.

The Upsides:

• Minimal Upfront Investment: The CPO typically covers the entire cost of equipment, installation, and infrastructure upgrades.

• Passive Income Stream: You receive regular lease payments from the CPO for the use of your land or parking spaces. This provides a steady, predictable revenue source with little ongoing effort from your end, but may limit your upside potential.

• A Hands-Free Amenity: You can offer EV charging to your tenants or customers without the financial risks and operational complexities.
  

The Downsides:

• Lower Revenue Potential: You typically won't benefit from the direct charging revenue as you would if you owned the chargers. In some cases, a CPO might not even pay traditional rent for the parking spaces, opting instead to offer a profit-sharing model.

• Less Control: The CPO will pick the chargers, pricing, and overall user experience. The CPO may also require exclusivity, limiting your options if you are not satisfied with their EV charging service.

• Long-Term Contracts: Ground leases for EV charging often involve long-term agreements ranging from 5 to 20 years, which can limit your flexibility in the future.

• Dependence on CPO Performance: Your reputation, to some extent, will be tied to the CPO's service quality and reliability. If your location is not a prime location within the CPO's portfolio, you may not be prioritized for issue resolution or repairs.

  
  

Which Path is Right for You?

The best choice depends on your specific goals, financial capacity, risk tolerance, and the nature of your property:

• Choose to own if:

  • You have the capital for the upfront investment.

  • You want maximum control over pricing, branding, user experience, and overall property aesthetic.

  • You want to fully capitalize on potential direct revenue streams.

  • You see EV charging as a core part of your property's long-term strategy and are willing to invest accordingly.

• Choose a ground lease if:

  • You prefer a hands-off, low-risk approach to providing EV charging.

  • You want a predictable, passive income stream.

  • You don't have the internal resources or expertise to manage charging operations.

  • You prioritize convenience over control.
    

No matter which option you choose, offering EV charging at your property is a forward-thinking move that can attract and retain occupants, boost property value, and demonstrate your commitment to sustainability. Carefully weigh the pros and cons to make the decision that best aligns with your business objectives.