CREJ - Property Management Quarterly - August 2015
Electric vehicles are catching on quickly, with over 300,000 sold in the last four years and adoption rates significantly higher than what the first hybrids experienced a little over a decade ago. There are now dozens of models to choose from and more on the way from virtually every automaker. In fact, BMW, Mercedes-Benz and Audi all declared that every one of their models will have a plug-in option before long. EV drivers love their cars because they are fun to drive, good for the planet and cost significantly less on a cost-per-mile basis than the gas counterparts. And in Colorado we have one of the best purchase or lease incentives in the country with electric car buyers qualifying for up to $6,000 in a refundable state income tax credit. As a result, properties across the country, from retail to offices to multifamily, are starting to accommodate this fast-growing group of drivers. Thankfully Colorado also has one of the strongest incentives for EV infrastructure. The Charge Ahead Colorado grant program, administered jointly by the Regional Air Quality Council and the Colorado Energy Office, allows businesses, municipalities and nonprofits to receive up to 80 percent of the cost to install an EV charging station, with a cap of $3,260 per single-port Level 2 station and $6,260 per dual-port station. There are three levels of charging speed. Level 1 is a trickle charge at 110 volts that gives the driver about 3 to 5 miles of range per hour plugged in. Level 2 is 240-volt charging that gives drivers between 10 and 25 RPH, depending on the car and the charging station used. And the last level of charging, DC Fast Charge, is named appropriately because drivers can get between 100 and 200 RPH. In addition to the Level 2 grant opportunities, Charge Ahead Colorado offers up to $13,000 per single-cord DC Fast Charger and up to $16,000 per dual-cord unit (or up to 80 percent of the project cost). Because of the higher cost of DC Fast Charging and the slow charge rate of Level 1, Level 2 is the common charging speed in most commercial settings. Equipment cost for Level 2 can vary greatly, with commercial units ranging from under $2,000 for a single-plug “dumb” unit to $8,000 for a dual-plug “smart” networked unit that allows the station owner to collect revenue from drivers, control access and access detailed reporting. It should come as no surprise that installation costs vary greatly, but the national average is in the neighborhood of $4,000 per station. For many properties the decision is easy. There is compelling data that shows EV drivers stay longer and spend more at retail destinations that offer low-cost or free charging. For multifamily housing, EV charging quickly is becoming a mandatory amenity, because an electric car owner either can rent at a property with a charging station or will have to look elsewhere. The biggest impact, however, comes at the workplace. The Department of Energy found that employees at businesses with charging stations installed are 20 times more likely to consider an electric car for their next car purchase. A number of offices in the Denver area found that one station becomes two stations within a year, and two becomes four. Because of this, it is recommended that extra conduit is added whenever a property is installing the first station. There typically are three or four rounds of Charge Ahead Colorado grant funding each year. The next application cutoff is Aug. 17, with the next deadline expected in late November or December, and another is scheduled in early spring. The Regional Air Quality Council manages the grant program in the seven-county Denver metro area, while the Colorado Energy Office manages the program for the rest of the state. Details for both programs, including a link to the online application form and a sample application, can be found at http://cleanairfleets.org/programs/charge-ahead-colorado. If you are considering the benefits of adding EV charging to your property, now is the ideal time to take action while grant funds are still available.