The electric vehicle (EV) market is experiencing a resurgence with traditional automakers recognizing the need to move into this market. As a result, we are in a moment of exciting transition in which consumers now have a number of EV options to consider. While EVs such as the Chevrolet Volt, the Nissan Leaf, and Tesla are leading the charge, adoption by consumers will largely be a function of the electric vehicle charging options available. Studies show that most EV charging currently takes place in the home (Carr 2010). Even so, in order for EVs to gain widespread consumer adoption, it is critical for an infrastructure of electric vehicle supply equipment (EVSEs) to exist outside the home.
The purpose of this report is to assess the financial viability of non-residential EV charging stations in the Los Angeles metro area. The report will look at important cost and revenue drivers that impact cost recovery specifically for commercial site owners. Taking the site owner’s perspective, our report will account for the key variables informing the decision making process. Ultimately, the goal is to provide site owners with a Discounted Cash Flow (DCF) model that highlights the conditions that must be met in order for an EVSE investment and installation to be profitable.