EV Chargers for Commercial Properties

EV Chargers forCommercial Properties

By: Scott Baker, Baker Engineering

“EVERY COUPLE OF YEARS, WE’VE HEARD THAT THIS WILL BE THE YEAR FOR ELECTRIC VEHICLES AND CHARGERS TO TAKE OFF,” SAID GLENN KURTZ, VICE PRESIDENT OF STRATEGIC INITIATIVES WITH LEGACY PARKING. “I THINK WE ARE FINALLY AT THE PRECIPICE OF SOMETHING AMAZING WHEN IT COMES TO EV CHARGERS.”

Current trends predict that electric vehicles (EV) will become standard over the next 15 years. Most major automotive manufacturers have stated goals to convert most or all new car models to electric by 2035. The EV market has grown substantially in the past decade. This can be seen most visibly in the number of chargers throughout the United States.

There were only 506 public EV chargers nationwide in 2010. The number of EV chargers has grown substantially to over 100,000 chargers in 2022. In Georgia, EV growth has looked a little different due to varying degrees of governmental support and consumer adoption outside of the Atlanta metro area. As of 2021, Georgia has over 54,000 registered electric vehicles, and a car-to-charger ratio of about 14 to 1. With the growth in electric vehicles, the need to provide charging infrastructure has risen considerably.

Charging Types and EV Technologies

EV charging stations currently come in three levels. A Level 1 charger is typically 120 volts fed from a standard wall outlet and is often referred to as a trickle charger. These chargers typically come with all EVs sold. The rate of charge is limited to 1.3 to 2.4 kW or three to five miles of EV range per hour charged. Level 1 chargers can take over 24 hours to completely charge an empty EV. Level 2 chargers can vary from 208 – 240 V, allowing for a range of 3 to 19 kW or about 18-28 miles of range per hour of charging. Level 3 charging is the fastest, at 480 volts with most cars being able to be charged up to 80-percent in 20 – 40 minutes and 100-percent in 60 – 90 minutes. Technology may find a way to reduce this time to a level similar to filling a gas tank as many researchers are working on this challenge.

There are a few novel ideas for solving current charger limitations. One idea that has gained traction in the Midwest involves roadways that charge vehicles through induction while electric vehicles drive on them. This is being tested in the Midwest, with Michigan’s Governor Gretchen Whitmer announcing construction of the first mile of wireless charging road in the U.S. in Detroit. If this solution works, it could reduce the battery size requirements and the need for as many charging stations but with likely costlier infrastructure and maintenance.

Another possibility involves the utilization of batteries in charging stations. These chargers would slowly fill connected batteries over time with a level 1 or 2 charger, then send a kW comparable to level 3 chargers to quickly fill EV batteries. This technology could reduce the infrastructure costs for fast charging, as older infrastructure could keep pace with charging needs without costly improvements. A brief look into the EVs that are on the market and on the roads shows a change in the pattern of commercial charging needs. When the first EVs hit the road, they had a more limited driving range leading to range anxiety and the worry about the ability to charge away from home. This issue has been reduced with many new EVs increasing their range to 250 miles per charge. For those vehicles, range anxiety for daily commutes has been all but erased. For vehicles with sub-100-mile ranges, charging station availability remains an issue.

History of Electric Vehicle Adoption and Support

The mainstream automotive industry began its gradual shift to electric vehicles with the advent of the Toyota Prius in 2000. The Prius demonstrated how the addition of batteries and an electric drivetrain could improve the efficiency of internal combustion engine (ICE) powered vehicles in these Hybrid Electric Vehicles (HEV). From there, the Nissan Leaf pushed its way in as the first massproduced fully electric vehicle in December of 2010. EV adoption was bolstered by the introduction of the federal EV tax credit in the 2009 American Clean Energy and Security Act, as well as consumer utilization of Georgia’s 2001 Low Emission Vehicle (LEV) and Zero Emission Vehicle (ZEV) Tax Credit.

This tax credit was put into place through O.C.G.A 48-7-40.16, which defines the LEV/ZEV tax credit. This credit previously gave up to $2,500 or 10 percent of the cost of EV chargers (whichever was less) per charger, as well as tax credits of 10 percent or $2,500 for low-emission vehicles, and 20 percent or $5,000 for zero emission vehicles. The LEV/ ZEV credit was discontinued on July 1, 2015, but EV adoption saw a sharp increase in Georgia between 2012 and 2015.

Along with the growth of fully electric vehicles, many manufacturers have incorporated Plugin Hybrid Electric Vehicles (PHEV) to take advantage of the fuel economy of EVs with the longer range of ICE included in the same vehicle. Both EVs and PHEVs are available for the federal tax credit of up to $7,500 depending on battery capacity.

In 2017 the City of Atlanta passed an ordinance requiring new parking structures to include 20 percent of spaces to have EV charging infrastructure in place to allow for future EV growth. This cuts down significantly on the cost of new charging stations by having conduit in place to minimize the future impact and cost of new service for these stations. On the federal level, the 2021 Bipartisan Infrastructure Law allocated $5 billion over five years for a national network of EV charging stations under the New Electric Vehicle Infrastructure (NEVI) Formula Program. 10 percent of funds are set-aside each year for grants to US states to help fill gaps in the network. States are required to submit an EV infrastructure deployment plan to gain access to a portion of the $615 million allocated for 2022. An additional $2.5 billion is available for communities and corridors through competitive grants. These grants will be awarded to innovative solutions for rural charging support, increasing EV charging access in disadvantaged communities, and other criteria.

Cost and Installation of Charging Stations

Some of the hurdles to installing charging stations are the high cost of installation, the maintenance of the stations, and the potential increased energy cost. After moving forward with installation of charging stations on the property, the next decision is whether the property team or a third-party company should own and maintain these charging stations. If you’re tracking energy consumption through ENERGY STAR benchmarking or ESG reporting, another cost to consider is adding a submeter to this system.

This energy can be subtracted from the ENERGY STAR profile or be included as scope 3 emissions to help reflect the breakdown of emissions to better represent the property’s energy profile. One metro-Atlanta engineer had the electric service for a group of new charging stations fed separately from the main building power,

continued on page 28

lowering the building’s peak demand. This decision kept the billing rates lower for the building, saving on energy costs while ensuring future capacity for EV charger growth.

Based on a few recent installations in the metro Atlanta area, the infrastructure cost can range from $6,000 to $10,000 per station. The installation time can vary based on infrastructure requirements but can be from two days to one week depending on complexity of install and number of stations. The cost of charging stations themselves can vary between $4,000 and $10,000 per station and typically take only a few days to install. Everyone interviewed for this article said the installation process proceeded without issue. A program that is available to help with the infrastructure cost is Georgia Power’s Make-Ready program. This program covers the cost of EV charging infrastructure for passenger vehicles, transit buses, various delivery trucks, airport ground support equipment, and forklifts. Through the Make Ready program, Georgia Power supplies the conduit, wiring, and associated infrastructure for both the utility and customer side of an EV charger.

This program does not cover the cost of the charger itself; however, the installation of EV charging infrastructure and its associated costs are normally higher than the cost of an EV charger. Old construction benefits greatly from this, as installing infrastructure for EV chargers can be prohibitively expensive for commercial properties.

Charger Pricing

There are several options for the consumer pricing structure of EV charger stations. The best option from the end-user’s perspective is to have free charging available at commercial office buildings. This reduces their operational cost for their vehicle but comes at the expense of property owners. Some tenant companies may choose to pay for their own meters and provide that as an amenity to their employees. Many property owners choose to install them and let a third-party metering company bear part of the installation cost and handle the consumer charging costs. This helps the property owner step away from the maintenance of the system and the individual transactions that come with paid charging stations.

This consumer-paid approach may cause frustration among users as pricing structures can be unclear. Currently, EV charging stations in the state of Georgia charge customers according to charging time rather than energy used. In 2022, bills were introduced into the Georgia legislature to change how electricity was sold and regulated for the purposes of EV chargers, House Bill 1133 and HB 1322 respectively. These bills failed in 2022 due to numerous issues, and study committees will be utilized instead.

“The issue was ultimately too nuanced to advance during the 2022 session,” explains Katie Roberts, director of Government Affairs with Fiveash-Stanley, Inc. “Ideally, the House and Senate study committees will allow for greater public input, expert testimony, and more thorough debate before the legislature convenes in January 2023.”

The Electric Vehicle Charging Study Committees (HR 895 in the House and SR 781 in the Senate) will address and research electric vehicle chargers in Georgia should these resolutions pass. Committees like this allow lawmakers to dive into issues without the constraints of the 40-day legislative session.

Building Occupancy Type

The need for EV charging stations varies greatly based on the building occupancy type. Understanding the consumer’s needs can help in the decision process for whether to add EV charging infrastructure and how many stations.

“It always begins with identifying your objectives, and scope,” Kurtz explains. “What is the purpose of the install? Is there demand [from tenants]? Is this for sustainability goals or LEED certification? Do you need level 1, 2, or 3 chargers? Do you have sufficient infrastructure and power for these chargers? These can be costly questions, but they are integral in defining and budgeting for a project like this.”

For residential occupancy, EV charging becomes a necessity as EV adoption continues to grow. For most EV owners, charging at home becomes a huge convenience so that time “filling up” does not add to people’s daily schedules. For anyone in multi-family or hospitality industries, addressing this need will be integral with the rapidly increasing demand for EV support. For these buildings, the availability of charging stations may become a factor in consumer’s decision process for picking apartments or hotels. Faced with the need to charge their car and the desire to remove any hassle from the equation, consumers will make decisions with this convenience in mind.

For retail, the length of time an occupant is in the space is far lower than residential or office, so those stations are typically an amenity for short-term charging to “top off the tank.” For these buildings, consumers will review the cost and convenience of charging stations to decide whether to use them. If the spaces are more convenient and charging is free, the utilization of these spaces will increase dramatically. The relatively low cost of electricity may push retail owners to provide this as an amenity to entice customers to spend more time in their space and assume additional sales will outweigh the cost.

For office buildings, there is an opportunity for EV owners to have extended time to charge their vehicles. Many office workers have their vehicle parked up to 8 hours a day in a property’s lot, and this gives a lengthy and convenient charging opportunity. If these properties choose to provide free charging, most tenants would be able to cover all of their charging needs while at work. In order to free up use of these stations, property owners could limit the time a user can charge for free, to ensure that more tenants may utilize this amenity while minimizing costs from additional station installations. Even a metered charger would be a convenient solution whose costs could be passed on to tenants instead of the end-user.

Installing Chargers

There are numerous benefits to installing EV chargers. There is the potential increase in leasing opportunities, a possible uptick in tenant satisfaction due to additional amenities, and ESG benefits for owner and tenant ESG reporting. With 78 different electric vehicle models in 2022 alone, EV adoption is rapidly growing, and an early adoption and implementation of charging infrastructure could put your property ahead of competition. Georgia Power’s Make-Ready Program is built on a first-come-first-served basis, and the budget for it is not infinite. Securing funding early can ensure a lower capital cost for owners.

With the continued growth of EV adoption, commercial real estate will need to address this challenge. There are challenges in understanding and identifying what consumers and tenants will demand versus the convenience of the offered amenity. Installing charging stations may not be a question of if, but when and how many. And the largest question of all still remains, how can tenants or customers be appropriately charged for this amenity? Several of these answers will change as the laws, auto industry, and consumers evolve over the next decade.

About the Author Scott Baker

Scott Baker oversees the Technical Services Department which focuses on Energy Star Certifications, Energy Audits, Energy Modeling, Commissioning, Retro Commissioning, and LEED related engineering tasks. He has experience working with multiple rating systems including: LEED-NC, LEED-CS, LEED-CI, LEED- EBO&M, and ENERGY STAR®. Scott has more than 12 years of experience in HVAC systems design and commissioning.Scott has a Bachelor of Science in Mechanical Engineering Degree from the Georgia Institute of Technology.