As electric vehicles (EVs) continue to gain market share, more property owners are exploring the opportunity to host EV charging stations. While the environmental and marketing benefits are easy to understand, the financial side is more nuanced—and essential. Whether you’re considering your first charger or expanding an existing setup, understanding how to evaluate the financial performance of an EV charging station will help you make smarter, more profitable decisions.

Here are the key factors you should consider.

1. Utilization Data: Your Starting Point

Utilization is the backbone of EV charging station performance. It refers to the percentage of time a charger is actively being used to charge a vehicle. Low utilization may suggest you’ve overbuilt—or simply chosen the wrong location. High utilization indicates demand and possibly even the need for expansion.

Many property owners get caught up in the idea that “more chargers = more revenue,” but that only holds true if demand is there. Most operators consider 10–20% utilization a healthy range for early-stage installations, with high-traffic areas hitting 30% or more. Anything below 5% should be a red flag.

Tip: Ask your charging provider for access to usage dashboards or partner with a platform that provides ongoing data analytics so you can track how your stations perform over time.

2. Matching Station Size to Optimal Utilization

Building too small limits revenue and frustrates users. Building too large ties up capital and increases ongoing costs. The key is to design your site for right-sized utilization, not maximum theoretical use.

This involves analyzing local traffic, property footfall, existing EV adoption rates, and future growth. Start with a base number of chargers—usually 2–4 for most commercial properties—and make sure your infrastructure can support more down the line if utilization justifies it.

Ask Yourself:

  • What’s the average dwell time on my property?
  • Are there existing attractions that encourage long stays (like restaurants or shopping)?
  • Can I accommodate Level 2, Level 3 (DCFC), or both?

3. Understanding Electricity Costs and Demand Charges

The cost of electricity isn’t as simple as the rate per kWh. In many areas, particularly with DC fast chargers, demand charges can be the single biggest operational expense. These are fees utilities charge based on the peak amount of electricity you draw in a short period—like when two cars fast charge simultaneously.

High demand charges can erase margins, especially if your chargers are used inconsistently. The good news? Some utilities offer EV-specific rates or incentive programs that reduce or eliminate demand charges. Others allow the use of load management software, which can stagger charging to avoid peaks.

Action Item: Before installation, talk to your utility provider. Ask:

  • What are the demand charges for this location?
  • Are there time-of-use (TOU) rates that affect charging costs?
  • Do they offer EV-specific commercial tariffs or incentive programs?

4. Plan for Smart Expansion, Not Just Growth

Installing EV infrastructure is easier and cheaper the first time. If you think you might need more chargers in the future, it’s smart to oversize the conduit, panel, and utility connection during your first install—even if you’re only putting in a few stations to start.

This concept is called make-ready infrastructure, and it can reduce future installation costs by up to 60%. Think of it as future-proofing: you might not need the chargers now, but the wiring and electrical capacity will already be in place when you do.

Smart planning includes:

  • Installing extra conduit at the site
  • Leaving space in distribution equipment or planning for additional panel capacity
  • Allocating physical space for future charging bays and hardware

5. Using Financial Data to Drive Decisions

Your EV chargers are not just amenities—they’re assets. With access to real-time performance metrics and financial data, you can treat them like a business unit. Asset Market bring data to your finger tips to help you with planning your EV charging station deployment. Track revenue per charger, per parking stall, and against your electricity and maintenance costs.

Look for trends:

  • Are some chargers consistently idle?
  • Are some always in use and generating queues?
  • Is one type of charger (Level 2 vs. DCFC) performing better?

This data should guide future investments—whether that means expanding to more stalls, swapping hardware, or even rethinking your pricing.

Conclusion: Think Like an Operator

EV charging is a fast-evolving opportunity for property owners. But it’s also a utility business, one that requires good data, infrastructure foresight, and a keen eye on costs. By aligning station size with utilization, monitoring electricity and demand charges, and planning expansion carefully, you can ensure your charging stations don’t just serve EV drivers—but serve your bottom line.

Ready to get started? Make sure your first questions aren’t “how many chargers?” but instead: What’s the utilization opportunity? What are my electricity costs? How can I scale efficiently? The answers will define your station’s success.