Business Models For Electric Vehicle Charging Stations - OpConnect presentation at Southeast...

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www.opconnect.com A Smarter, Cleaner, Greener Future™ EV Charging Infrastructure Business Models bitly.com/opc-altfuelexpo

Transcript of Business Models For Electric Vehicle Charging Stations - OpConnect presentation at Southeast...

www.opconnect.com

A Smarter, Cleaner, Greener Future™

EV Charging Infrastructure

Business Models

bitly.com/opc-altfuelexpo

www.opconnect.com Copyright © 2014 OpConnect, LLC

About OpConnect

Minority- and Veteran-owned

Networked EV charging stations

designed and manufactured in U.S.

Provide networking services for alt-

fuel infrastructure

10+ years developing comms and

security software for transportation

& aviation industries

GSA-listed product and vendor

Manages 500 charging spots

throughout the U.S.

Member of Open Charge Alliance,

and develop team for Open Smart

Charging protocol

www.opconnect.com Copyright © 2014 OpConnect, LLC

OpConnect Stations

Differentiators:

Credit Card Reader

15” touchscreen

EV reservation & queuing system

OCPP compliant

Surveillance camera

Load Control/Building Energy Management

Integration

Cord Management System

Solar power complement

Network Client Kit (network dumb stations)

Stations are a platform for other apps,

including parking meters, retail reviews,

host businesses, car/bike sharing programs

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A Business Model For Whom?

EV Driver

Service Provider

Owner of the Station

(business, city, etc.)

Electricity Provider/Utility

EV OEM

EVSE Vendor

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EV Charging Station Market

21,300 charging ports

(AFDC)

12:1 PEVs to EVSE

What is the right ratio?

National Research

Council assumed 1

public port per 2.5 EVs

California forecasts need

for about 100-200k

charging ports for Public

& Workplace charging by

2025 to support EV

adoption/environmental

goals

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Electric Vehicle Driver Demographics

$110k+ income (twice U.S. avg.)

80% own a smartphone

77% have a 4-year degree or higher

Early adopters

Tech friendly

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Crystal Ball Factors

Current and future consumer

demand changes one way or the

other

Range for vehicles dramatically

changes

Technology leap frogs, and we’re

all riding space ships in a couple of

years

Regulatory requirements

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EVSE Vendors

Type

Level 1

Level 2

DCFC

Smart/Dumb

HW/SW

OEM/Service Provider

Location

Home

Work

Public

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Option: Just sell the hardware

Works well enough if you can

drive down manufacturing

costs

Low costs = no-frills stations

Works for scenarios such as

home charging and some

workplace or fleet charging

Challenge: margins are can be

slim and you’ll need to sell a

lot. It is also a one-time

transaction

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Option: User Fees/Subscriptions

User fees can be based on connected or

charging time, kWh received, or other factors

The rates range between $0.49 per kilowatt-

hour to $1/hr to $3/hr for Level 2; and $3.50

to $8 hour or session for DCFC

Subscriptions offer user groups unlimited

usage for a set monthly fee.

Subscription fees vary around $20/month

Challenge:

Need to manage stations that will be

utilized at an acceptable rate, which may

not address all driver needs

At a couple bucks per hour for revenue,

payback can be a while

Need to keep costs down may result in

less than ideal parts, etc.

OpConnect mobile app payment with QR code

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Option: OEM Supported

Direct

Build OEM network of fast chargers

Tesla Superchargers

Subsidized

Nissan’s No Charge to Charge

BMW’s ChargeNow

Essentially, OEM is putting marketing

dollars toward driving sales.

Challenge:

Requires cooperation and

commitment

Operating a fueling network not

necessarily an expertise

Can be nonexclusive

Source: CC by 2.0 (Jeff Cooper)

www.opconnect.com Copyright © 2014 OpConnect, LLC

Option: Electric Utilities

Electric utilities own, install and

operate EV charging stations

Cost is folded into our utility rates

Benefit: allows them directly

better manage the grid (demand

response, etc.)

Challenge:

Getting regulatory approval to

fund an initiative that doesn’t

benefit all rate payers

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Option: Loyalty Programs

Work with retailers to build

branded loyalty programs with EV

drivers

Drivers spend 30-50 minutes

longer at a business while charging

79% of consumers seek out green

amenities while shopping

EVSE integrated with loyalty

program (free charging while

shopping, or 10 shopping trips

results in $20 free charging)

Challenge: Will drivers become

shoppers while vehicle charges

OpConnect mobile app with integrated

coupon and sponsorships

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Option: Outdoor & Mobile Advertising

Advertising is placed on the

EVSE, either as a wrap or via a

digital screen

Model allows opportunity to reach

both passersby and drivers

Model already proven via street

furniture/bus shelters in most

cities worldwide

Partners receive revenue share

Drivers receive subsidize charging

Challenge: Number of installed

screens? Will the screens be

seen? Approval in some locations

for outdoor screens

www.opconnect.com Copyright © 2014 OpConnect, LLC

For more information about how OpConnect can make a positive

impact for your community or business, contact:

Dexter Turner President, CEO

[email protected]

(503) 477-5742 ext. 229

Nathan Isaacs Sales & Marketing Manager

[email protected]

(503) 477-5742 ext. 216