The electric vehicle (EV) revolution is well underway, and it's poised to reshape the automotive industry and our daily lives. By 2030, experts predict that EV adoption will grow by a staggering 400%. This seismic shift in the transportation sector will have profound implications, especially for apartment building owners. In this blog post, we'll explore the reasons behind this EV boom and what it means for those managing apartment complexes.
What is Driving This Massive Growth?
- Environmental Concerns Drive EV Adoption
As awareness of climate change and environmental sustainability grows, more individuals are choosing to reduce their carbon footprint. One of the most impactful ways to do this is by switching to electric vehicles, as we and others have written about at length. With zero tailpipe emissions, EVs help combat air pollution, reduce greenhouse gas emissions, and mitigate climate change regardless of the source of electricity. As more and more renewable or less harmful energy sources are put into place the greener and cleaner EVs become.
- Advancements in EV Technology
The rapid development of EV technology is making electric vehicles more accessible and practical for the average consumer. Improved battery technology allows for longer ranges, shorter charging times, and better affordability. Even with inflation effecting prices EVs today cost about 18% more than their gas counterparts and thats before government incentives kick in. EVs are no longer just an eco-conscious choice but a convenient one, too.
- Government Initiatives and Incentives
Many governments worldwide are introducing incentives and policies to promote electric vehicle adoption. These measures include tax incentives, rebates, charging infrastructure development, and stricter emission standards for automakers. In fact the United States is making it even easier to get these rebates by tacking them on directly at the time of purchase rather than customers waiting until tax season. These initiatives are driving more people to consider EVs when making their next vehicle purchase.
- Expanding Charging Infrastructure
One of the biggest hurdles for potential EV buyers, particularly those living in apartments, is access to charging infrastructure. However, as EV adoption surges, more businesses, municipalities, and apartment complexes are investing in charging stations. Apartment building owners who install charging stations can attract eco-conscious tenants and increase the value of their properties. Apartment owners that have gone with Orange often save 70% on their installation costs and install 2-4x the number of stations too.
What This Means for Apartment Building Owners
- Increased Tenant Demand
As the number of EV owners grows, apartment building owners can expect to see an increase in tenant demand for EV charging facilities. Having charging stations on-site can be a major selling point for potential tenants, attracting those who drive or plan to drive electric vehicles. However, building owners should be prepared for increasing demand in the future. Often if a building has 2 EVs on-site today, they can expect 4 the next year, and potentially 8 the year after that. Ensuring that you have a system that can scale to meet this demand is essential or property owners are likley to spend even more money ripping out the old system and starting all over again.
- Enhanced Property Value
Installing EV charging infrastructure can significantly enhance the value of an apartment complex. The convenience of on-site charging facilities can justify higher rental rates and make the property more attractive to renters and buyers alike. It can also set your property apart from competitors in the rental market as when it comes down to it EV owners will always pick a property that has on-site charging over one that doesn't.
- Regulatory Compliance
As governments continue to promote EV adoption, there may be future regulations requiring apartment buildings to provide charging infrastructure. Being proactive and installing charging stations now can help apartment owners avoid compliance issues and potential penalties down the road. Even today in California all new multi-family housing developments must provide EV charging infrastructure to at least 25% of its spaces which will increase to 40% starting next year.
- Revenue Generation - But Not Always Actual Profit
Apartment building owners can generate additional revenue from EV charging stations. These stations can be operated as pay-per-use systems or marking up the cost of energy, offering a new income stream for the property. However, many providers that offer revenue are careful to not offer actual profits. This is because often charging systems are so expensive to install, operate and maintain that its simply not possible to turn a profit. This is another reason Orange exists as we can actually offer propertes a postive ROI and real profits.
The electric vehicle revolution is gaining momentum, and the growth forecast is astounding. As more people make the switch to EVs, apartment building owners have a unique opportunity to meet the changing needs of their tenants while simultaneously increasing the value and sustainability of their properties. Investing in EV charging infrastructure isn't just a smart business decision; it's also a step towards a greener, more sustainable future. Embrace the EV wave, and your apartment complex may just become the sought-after destination for eco-conscious tenants in the years to come.
Reliable EV charger that’s even easier to manage.
