Do Charging Stations Make Money?

The profits of electric vehicle charging stations are catching up with traditional gas stations. This is not a new energy car company, nor a charging station operator,

this is from the traditional energy oil giant – British (BP) oil company!  Surprising: do charging stations make money? Is it more profitable than a gas station? Some business-minded people may have already begun to figure out:

is it a good business to invest in charging piles now?

gas station

Some people say that they are foreign companies and may make money, but not necessarily when they arrive in China. Because everyone who knows this industry knows that charging stations are not a profitable industry in China at present!

Whether the charging stations make money or not is based on the special call of the industry benchmarking company,

according to its 2020 financial report. Only Chengdu Special Call achieved a profit in 2020, with a profit of 38.0039 million yuan.

The data shows that the net loss of special calls in 2020 is 77.6962 million yuan,

and the net loss of Qingdao special calls in 2020 is 30.7975 million yuan.

The parent company of Teel, the chairman of Te Guide, Yu Dexiang, once revealed that he lost 800 million on Teel. This is the case with industry bigwigs, not to mention small operators.

It stands to reason that the supply of EV charging is in short supply, why is it difficult to make money?

1. The cost of building a charging station is high.

The cost of EV charging equipment is not high, but it also needs supporting high and low-voltage equipment, site rent, labor costs, and other expenses.

According to the calculation of the Everbright Securities Research Institute,

the average investment cost of a fast-charging pile is 70,000 yuan. If a small and medium-sized charging station with 10-20 charging piles is established, it will require millions of funds.

In other words, the operation of charging piles is an asset-heavy industry with high initial investment costs and a long profit return period.

2. The utilization rate of the charging station is low.

New energy vehicles are not fully popularized, and charging piles are idle for more than 10 hours.

Bluesky EV Charging pile

3. Price war.

The market of charging piles is still in the early stage, so many operators and service providers are attracted to join.

Some charging pile operators and service providers are fighting price wars on charging piles in order to stake their horses,

which makes it more difficult to make profits.

From the above analysis, it is difficult for charging stations to make profits, which is obviously not a good business.
However, in the eyes of many industry insiders and institutions, charging stations are a good business.

With the advent of the era of new energy vehicles, the number of charging piles is bound to increase,

and the utilization rate is also greatly improved.

In this regard, some institutions believe that in the next 2 or 3 years, the charging pile industry will be further reshuffled.

For players, the charging station is a capital-heavy business model,

and it is necessary to have a certain strength to play better.

Whether the charging station can make money or not depends on your business.

EV charger stations

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