Fully Funded vs. Client Funded: Choosing the Right EV Charging Model for Your Business
As electric vehicles (EVs) become increasingly popular, offering EV charging at your business can be a significant advantage. But how do you fund the installation and maintenance of charging infrastructure? There are two primary models to consider: fully funded and client funded. This guide will walk you through the differences between these options, helping you make the right choice for your business.
Project overview
What Is a Fully Funded Charging Model?
In a fully funded charging model, a third-party provider covers all the costs associated with installing, maintaining, and operating the charging infrastructure. This model allows you to offer charging to your customers, employees, or residents without bearing the financial burden.
- How It Works: The provider installs the chargers at your location and typically recoups costs through user fees (drivers pay to charge their EVs).
- Ownership: The provider retains ownership and is responsible for ongoing maintenance and upgrades.
- Ideal For: Businesses that want to offer EV charging as an amenity but prefer not to invest upfront capital. Examples include retail centers, hotels, and residential properties.
What Is a Client Funded Charging Model?
In a client funded charging model, your business funds the installation, maintenance, and operation of the EV chargers. This means you own the chargers, allowing you greater control over pricing, branding, and user experience.
- How It Works: Your business pays for the initial installation, as well as any ongoing maintenance. You can decide whether to charge users or offer free charging as a benefit.
- Ownership: Since you own the chargers, you can set your own pricing and customize features to align with your brand.
- Ideal For: Businesses looking to attract EV-driving customers or provide charging as an added service, with more flexibility over the charging experience. Examples include premium hotels, office parks, and high-end retail outlets.
Key Differences Between Fully Funded and Client Funded Models
Choosing the Right Model for Your Business
Here are some questions to consider when deciding between fully funded and client funded options:
- What Are Your Financial Goals?
If you’re looking to avoid a large initial outlay and prefer a no-cost solution, a fully funded model is likely the best fit. However, if your business is open to making an investment for a potential long-term revenue stream, the client funded model could be more advantageous. - How Much Control Do You Want Over the Charging Experience?
A client funded model offers full control, allowing you to set competitive rates or offer free charging to attract visitors. In contrast, a fully funded model means the provider manages pricing and other aspects. - How Important Is Branding to Your Business?
For businesses that want the chargers to reflect their brand, a client funded model provides more opportunities for customization. Fully funded chargers may include the provider’s branding, with limited customization. - Do You Want to Earn Revenue from EV Charging?
With a client funded model, any charging fees can go directly to your business, creating a new revenue stream. In a fully funded model, the provider typically retains the revenue to cover installation and operational costs.
Choosing between a fully funded and client funded charging model depends on your business goals, budget, and operational preferences. Fully funded models are ideal for businesses seeking a cost-free solution with minimal management, while client funded models work best for those wanting complete control over the charging experience and potential revenue.
By evaluating your needs and goals, you can select the model that best aligns with your business’s strategy—providing a valuable service to EV drivers and enhancing your brand’s appeal in an increasingly electric world.