(5 minute read)
Welcome to Ensto EV Wiki. Here we have categorized EV (electric vehicle), EV industry, and EV charging related terms for you. Because, EV world is filled with abbreviations, terms and acronyms, that can be hard to comprehend at times. Here Ensto EV Wiki will help you. We will keep updating this page, so make sure to bookmark it. That way you have one click access to the most up to date EV information in compact form.
Electric Vehicles are becoming increasingly significant in reducing emissions. Bloomberg has estimated that in 2040 some 55% of all new passenger vehicles registered will be electric. That is sooner than most of us think.
Two funding models created by electric car charging station manufacturers
With EV markets booming, it has become evident, that there is growing demand for EV infrastructure expansion as well. That meaning electric vehicle chargers, because you know, the car batteries aren’t going to fill themselves… 😉.
To help EV charging entrepreneurs launch new businesses, and expand their existing charging networks, governments are giving out subsidies. That is so the charger installing will be cheaper for you. But they are not alone with this quest, as we, the electric car charging station manufacturers are making it easier for you to launch your charging service as well...
So, we have created two ways for you to fund and launch your EV charging business.
Then what are they? For now, let’s call them “Own your EV charger” and “Lease your EV charger” models.
1. Own your EV charger model – Invest, order, install...
Now, how does the name sound? Most likely this is the model that first popped to your mind, when you started to consider launching an EV charging business. Here, as the name states, you own your EV charger 100 %. So, things are simple: you buy your charger, you own your charger, you install your charger, you manage your charger, and you maintain your charger. Plain and simple.
So, selecting your charger is of the essence here.
If you would like to better understand how to select the best EV charger for your business, you can read our blog post on it here.
This can be very attractive way to launch and offer your EV charging service, as here you pay for the charger the moment you buy them and get them installed. After that, your only fees come from charger maintenance, management, and buying of energy.
What do you need to know when selecting this
Thus, the “own your charger” model requires some capital to kick-start it. It doesn’t mean the investment has to be a large one. You see, here you create the whole charging infrastructure and maintenance procedures to fit your goals, budget and business size. So, it’s a very customizable funding model.
For that reason, the “Own your EV charger” model, can suit well both businesses large and small. When going with it, you should put special emphasis on the EV charger you select, because that’s the charger you will have for years to come.
If you are looking for a charger, I can recommend the Ensto Wallbox. That is most likely going to suit your situation and goals, because the charger is compact, supports charging two EVs simultaneously, and is future proof with v2g capability. You can read more on it here.
This funding model was born rapidly when electric car charging station manufacturers, such as us Ensto, started getting orders in. But as mentioned, we have also created a model, that you can take as your own with less kick-start capital. And that's called "Lease your EV charger".
2. Lease your EV charger – Pay with profits
But you have another option as well! As you might imagine based on the name of this model, you don’t necessarily have to own 100 % of your EV charger to make profits with it. And that’s made possible with our “Lease your EV charger” model. In truth, you own your charger here as well, but it's still more like a leasing solution here.
By leasing, you don’t need to have piles of money the moment you want to start your charging business. Rather, you can pay for the charger, its installing and upkeep as you go and make profits. Then what is the secret sauce here?
You do this via a contract with the electric car charging station Manufacturer or Operator. Here you determine the charger you want, who takes care of the maintenance, how charger management is done, length of the chargers guarantees, and how to upgrade your chargers to the next generation when the time comes… etc.
Thus, there are some important things you need to know.
What do you need to know when selecting this
Of course, the contract covers tons more stuff as well, but the idea I am getting across to you is, that the contract outlines your upcoming business model. It makes it easy and effortless to start a new EV charging business. And actually, for that reason, this model has increased in popularity in the EV charging markets in recent years. It seems that business owner’s are finding the power of good contract, which enables them to easily outsource labour heavy management and maintenance to the electric car charging station manufacturers.
If this funding model is to your liking, you could read our blog post on 5 great EV charging business models. There you will find five smooth ways to organize your day to day business operations. You can read it here.
The “Lease your EV charger” funding, is a great way for small and medium sized businesses, to start EV charging. It solves many operational and maintenance related issues through the contract, puts you in direct relationship with the manufacturer, and lets you spread the costs into wider time span. For the same reasons it can be the go-to solution for larger businesses, who are looking to organize their EV charging more efficiently.
So, now you know how to fund your new business operations. But what's next?
Have you selected your funding model? - This is what’s next:
Even that both of these funding models are different in certain ways, they also have something in common. They both satisfy EV charging customers by filling the car batteries affordably when done right. Interestingly, in a study done by Aalto University of Finland, it was found that 80 % of EV charging costs come from running the charging station. Quite a lot, now don’t you think?
So you can increase your profit margins a lot, by creating efficient EV charging methods.
And luckily, we have them! We have put much effort into making EV charging profitable for you and affordable to the end-user. The method of cutting your EV charging costs is outlined in our free cut your operating expenses guide (works for both funding models), which you can download here.
If you want to learn, how to cut your EV charging expenses, download your free guide here.
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