The U.S. electric vehicle market just got a big jolt.
In April, the White House proposed slashing allowable carbon dioxide emissions for new cars and trucks by almost half in less than 10 years. The regulations suggest that the easiest way for automakers to comply is by massively increasing the manufacture and sale of electric cars, trucks and SUVs.
Combined with tax breaks of $4,000 to $7,500 per vehicle and billions for installation of high-speed charging stations, and it’s clear the government wants to fast-track America’s shift from gasoline to battery-powered vehicles. The Biden administration says transportation, with its reliance on fossil fuels, produces the largest share of greenhouse gas emissions, including CO2. It says slashing those levels would reduce air pollution and improve public health.
And since fully electric vehicles produce zero tailpipe emissions, expanding their use is the quickest way to achieve those goals. The White House wants electric vehicles to make up to two-thirds of all new car sales within a decade. And seven states (California, Maryland, New York, New Jersey, Washington, Massachusetts and Oregon) have said they plan to ban sales of new gasoline-using vehicles by 2035.
Some compare the EV push to the transition from horses and buggies in the early 20th century. For many, the electric vehicle revolution can’t come soon enough. But for the owners of gas stations, talk of this change can induce indigestion. It threatens to upend the business model they’ve relied on for over a century.
The good news is this change, as scary as it might be, is an opportunity to reimagine your gas station as a destination where consumers want to spend time — and money while they’re there.
This article will explore this approaching shift in depth. It will cover:
- What the electric vehicle market is today
- Where the electric vehicle market is heading
- How electric vehicle charging works
- Things to consider before installing electric vehicle chargers
- How to promote your charging stations to customers and employees
- What customers could do while charging their electric vehicles
- Why the electric vehicle revolution will take time
- So, are you ready to go electric?
The U.S. electric vehicle market just got a big jolt.
In April, the White House proposed slashing allowable carbon dioxide emissions for new cars and trucks by almost half in less than 10 years. The regulations suggest that the easiest way for automakers to comply is by massively increasing the manufacture and sale of electric cars, trucks and SUVs.
Combined with tax breaks of $4,000 to $7,500 per vehicle and billions for installation of high-speed charging stations, and it’s clear the government wants to fast-track America’s shift from gasoline to battery-powered vehicles. The Biden administration says transportation, with its reliance on fossil fuels, produces the largest share of greenhouse gas emissions, including CO2. It says slashing those levels would reduce air pollution and improve public health.
And since fully electric vehicles produce zero tailpipe emissions, expanding their use is the quickest way to achieve those goals. The White House wants electric vehicles to make up to two-thirds of all new car sales within a decade. And seven states (California, Maryland, New York, New Jersey, Washington, Massachusetts and Oregon) have said they plan to ban sales of new gasoline-using vehicles by 2035.
Some compare the EV push to the transition from horses and buggies in the early 20th century. For many, the electric vehicle revolution can’t come soon enough. But for the owners of gas stations, talk of this change can induce indigestion. It threatens to upend the business model they’ve relied on for over a century.
The good news is this change, as scary as it might be, is an opportunity to reimagine your gas station as a destination where consumers want to spend time — and money while they’re there.
This article will explore this approaching shift in depth. It will cover:
- What the electric vehicle market is today
- Where the electric vehicle market is heading
- How electric vehicle charging works
- Things to consider before installing electric vehicle chargers
- How to promote your charging stations to customers and employees
- What customers could do while charging their electric vehicles
- Why the electric vehicle revolution will take time
- So, are you ready to go electric?
1. What the electric vehicle market is today
Most conversations around electric vehicles focus on battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). BEVs run 100% on battery power to drive one or more electric motors. Popular BEVs include the Ford Mustang Mach-E SUV, the Chevrolet Bolt, and anything made by Tesla Inc. Charging is critical for these cars. If a BEV’s large battery runs out of energy, the car won’t go.
In contrast, PHEVs have a conventional internal combustion engine plus a medium-sized electric battery. A PHEV uses battery power when available. But if the battery is empty, a PHEV can turn on the gasoline-powered engine. Then the car works like a traditional hybrid. That’s why unlike with a BEV, charging is optional.
Most electric vehicles on the road are BEVs.
Although U.S. electric vehicle sales today are minor compared with those of gas-powered vehicles, they’re growing. According to vehicle marketing services company Cox Automotive, U.S. new-EV sales could reach a record 1 million in 2023. They currently are 7.2% of all new cars sold.
Worldwide, more than 26 million electric cars are on the road.
The U.S. government wants to dramatically increase the number of electric vehicles on the road in under a decade. The proposal will affect the business of gas station owners.
2. Where is the electric vehicle market is headed
Although predictions on the rate of EV adoption in the U.S. vary, many analysts are bullish on its outlook. The U.S. Bureau of Labor Statistics cites Standard & Poor’s Global Mobility forecast, which predicts EVs could make up 40% of U.S. passenger vehicle sales by 2030. Investment firm Goldman Sachs is even more aggressive. It says 70% of all U.S. new car sales will be EVs in 2035. And by 2040, the number will surpass 80%.
Charging an electric vehicle can take hours – or about 30 minutes. It depends on the capabilities of the vehicle and the charging station.
3. How does electric vehicle charging work?
To charge an electric vehicle, a driver plugs into a compatible charging outlet or station. The motions are like how drivers have refilled their fuel tanks for more than a century. But how much it costs, and how long it takes, varies based on the charger category.
There are currently three charging categories for PHEVs and BEVs: Level 1, Level 2 and Level 3 — sometimes called DC fast charging. Due to their smaller batteries, most PHEVs cannot use Level 3 charging.
Level 1 is the standard 120-volt household outlet. It can add 3 to 5 miles of range in an hour — too slow for most drivers and nothing like a typical gas station visit. It could take over two days to recharge a large battery. The outlets are easy to find, however.
Level 2 is a 220- to 240-volt outlet that can add up to 80 miles of range in an hour. Many EV owners install these in their home garages for overnight charging while parked. They’re also sometimes found in hospitals, mall parking lots and businesses where drivers might spend several hours.
Some gas stations have installed Level 2 chargers, but they’re still too slow to replicate the experience of refilling a gas tank.
But slower charging isn’t a choice for EV drivers traveling long distances or who away from home for an extended time. And that’s where Level 3 — aka DC fast charging — comes in. It supplies 400 to 900 volts at an outlet and can add up to 20 miles of range in about a minute. A large battery can recharge to 80% in half an hour. And charging is likely to get faster and more powerful in the future. These chargers are currently the least common, but they approach the quick fueling time of gas tanks.
These are the chargers you should be thinking about installing at your station. They are the future of EV transportation.
4. Considerations before installing electric vehicle charging stations
High-speed EV charging stations can cost tens of thousands of dollars to install, although federal or state incentives may be available. As a station owner, you should assess your customer base and location to see if they can support EV chargers. If you’re in an area where EVs are as rare as the Batmobile, it might not be worth spending the money.
If you do want to add one or more EV charging stations, have a licensed commercial electrician check your system. You may need to upgrade your electrical infrastructure to handle the required capacity.
Even though the number of electric vehicles on the road is still small, the stations that offer high-speed EV charging are growing. Major chains such as 7-Eleven, Wawa, Circle K and Phillips 66 have announced investments in the technology.
Because even high-speed charging stations need drivers to stay parked for 20 to 30 minutes to recharge, consider installing chargers where they won’t interfere with pump traffic. Pick a spot close to your convenience store to encourage drivers to shop while they wait.
You’ll also need to decide on an EV charging pricing model. Options include paying per charge, a monthly subscription, or free (and you don’t want option No. 3).
If you partner with a charging network, such as Electrify America or ChargePoint, it may have recommendations or pricing structures. Most Level 3 charging is by the minute, the session, or per kilowatt-hour.
Unlike fuel prices that can change daily — or even several times per day — the price of electricity is typically more stable and often regulated. You won’t have to adjust your charging price every few hours.
Level 3 charging isn’t cheap. The current cost of charging an EV at a Level 3 station is comparable to, and sometimes more than, filling a tank with gas. In comparison, at-home charging costs using a Level 1 or Level 2 outlet are often less expensive than refueling a gas-powered car.
Gas stations owners will need to decide if installing electric vehicle chargers make sense for their businesses.
5. How to promote your charging stations to customers and employees
So after research, let’s imagine you decided to put in a few DC fast chargers at your station. You found the right spot and set your price.
Now what?
You’ll need to train your employees on their operation. Some customers may have questions about the technology. They may be considering an EV for their next vehicle. Or if your customers include new EV drivers, it could be their first time using fast chargers. They’re looking to experts like your employees for answers.
By training your employees on talking about the technology, you’ll remind customers that your station will be available for fueling needs — now and in the future.
After you’ve trained your employees on the tech, the next step is to promote that your gas station offers fast, reliable electric vehicle charging. Consider:
- Placing signs at the entrance to your property.
- Taking photos of the stations and post them on social media and your store’s website.
- Contacting local newspapers or television stations to encourage them to cover the announcement.
Widespread adoption of electric vehicles means that consumers will likely spend more time charging at gas stations and convenience stores. Station owners should consider installing amenities such as golf simulators to keep drivers entertained while waiting.
6. What customers could do while charging their electric vehicles
While EV charging should get more efficient in coming years, it will be some time before it approaches the five- or 10-minute stop of filling up a gas tank. That means most electric vehicle owners will be at your station a while. Have you thought about how to keep them busy for the 20 or 30 minutes they may park at your station?
The upcoming EV revolution might be the perfect time to investigate adding a quick-service restaurant with on-site seating or an upscale coffee bar. For busy off-highway stations: What about installing showers, fitness equipment, or golf simulators? Some truck stops already offer these amenities.
Many stations offer much more than just selling gas, drinks and snacks. Could your store become one of them?
7. Why the electric vehicle revolution will take time
For some gas station owners, the electric vehicle revolution is scary. If you’re worried about what will happen to gas stations after electric vehicles take over, you should relax. The change won’t happen overnight. Most American drivers will fill their tanks with gasoline for a long time.
There are currently more than 250 million vehicles on U.S. roads. According to the New York Times, fewer than 1% are electric. Even if the aggressive electrification timetable proposed by the White House goes into effect, only around 13% of all vehicles will be electric in 2035. And by 2050, most cars on the road will still use gasoline.
Plus, making the batteries that electric vehicles rely on require substantial raw materials such as lithium, cobalt and nickel. Mining these minerals is labor-intensive and expensive. It’s unclear if the post-pandemic supply chain can produce enough to meet expected demand. That could inflate prices and slow sales of electric vehicles.
That’s bad for people who want to free America from the uncertainty of the global oil market. But it’s good for gas station owners, who should have plenty of time to prepare for an electric vehicle transition.
8. So, are you ready to go electric?
If you’re ready to invest in the electric vehicle future, it’s an exciting time. Electric vehicles offer a new way of thinking about transportation and the role of gas station convenience stores. Understanding this new market, figuring out what it means for your store, and making the right investment decisions could help your business.
Station owners who are early adopters of convenient EV charging technology — while not forgetting about their many gasoline consumers — will be well-positioned for an electrified future, no matter how long it takes to arrive.
