Ev Charging at Home

The rapid growth in ownership of electric vehicles is requiring the real estate and property technology space to take the activities in electric mobility into deep consideration. Though real estate investors and owners are not transportation experts, it is crucial for them to become aware of the basic needs of the accelerating EV market.

At the macro level, three main trends are occurring in the motorized transportation sector influencing real estate investors,1) automation (we’ve all heard of autonomous vehicles or “robot cars”, 2) shared platforms (think of Uber or Lyft), and 3)Electrification ( think of your boss’s Tesla or eco-conscious college roommate’s Nissan Leaf). For the sake of this conversation, we want to focus on the transition from internal combustion engines (your gas or diesel vehicles) to fully electric vehicles. The electrification transition creates several technical challenges and opportunities that commercial and residential property owners need to consider, local governments can help support, and solutions providers can help accelerate.

According to the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy, eighty-five percent of all charging will occur at home. While recent federal investments like the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) are working to support the needs of corridor charging and commercial availability, there is a growing need for owners of multi-unit developments (i.e., apartments, condos, and co-operatives) to enhance their properties by supporting the “at home” charging needs of their residents.

What are the benefits of supporting EV charging on your property?

1. Staying Competitive. As the market of EV ownership grows, operators will look for living arrangements that support the needs of their mobility choices. The “inbuilding” market will quickly move from an attractive amenity to a “must-have” for many tenants.

2. Attending to Sustainability Needs. Sustainability in this case is not simply the environmental benefit of zero tailpipe emissions, but also considerations such as obtaining electricity from renewable sources and social justice benefits that ensure that multi-unit development residents have access to the same amenities that a single-family dweller might have available to them. Such considerations may also influence various forms of property investors that are looking to manage the environmental, social and governance implications of their portfolio investments.

3. Managing Operating and Capital Investments.

Installation of charging infrastructure should not be done as a “one-off” activity, but thoughtfully integrated into the capital investment considerations and operating decisions of a real estate asset. While there is an upside to the attracting and retention of clients, infrastructure investment should evaluate construction, technological and ongoing operational risks.

What considerations do property owners need to make when considering EV Infrastructure Investments?

1. Property Ownership Structure and Site Location: The legal configuration of the property can require various forms of approval and numerous methods of deployment of charging infrastructure. Is the building governed by a condo association? Is it under contract with a property manager? Does every parking space come with a charger? Can an “on-demand” system be created for residents? Is charging an amenity that is integrated into the rental price, or can a community ownership or individual price structure be created? In each instance, the charging business model for the property can determine the location and infrastructure deployment strategy.

2. Energy Management (both for supply and costs): Energy management, or simply understanding the current consumption of electricity in a property, can be a significant, but oftentimes an overlooked hurdle. Growth in electric vehicle charging will create an increase in the consumption of electricity. Where is the best location in the property to site charging installations? Where is the physical location of the power supply in the building? While in many instances, the increase in electrical consumption can be minor, it is important to understand a baseline of power consumption. Such information creates amode for energy infrastructure and can help support owners with other electrification needs and upgrades.

3. User Experience: Chargers need to be in safe locations, they need to be reliable and universally accessible.

4. Vendor Selection and Technology Needs: There are a growing number of companies that can provide charging equipment, but can they provide reliable construction, telecommunications, and engineering solutions? Additionally, do the operating systems meet the data or business intelligence needs of the owner?

5. Financing, Operations and Maintenance: There are several financial solutions that are becoming available. From grants and utility readiness programs or rebate packages to “charging as a service” solutions that allow for infrastructure and operations and maintenance to be bundled together and paid for like the copier in your office, and create cost effective and agile business models that fit your needs are available.

Much like the diversity in property operations, electric vehicle charging requires bespoke decision making and professional guidance. Real Estate investors need to be able to have access to detailed locational analysis, awareness of energy consumption patterns and keen insight into the impacts on infrastructure and operational footprint to make the right investment in charging infrastructure. It is important for commercial and multi-unit residential real estate owners to begin such evaluations in earnest now, or they could be left behind the curve.