Businesses are reaping the environmental and social benefits of providing electric vehicle charging for employees. That’s according to research published last week by Presidio Graduate School (PGS) and ChargePoint, providers of the world’s largest EV charging network.
Last fall, a research team from PGS conducted a study on workplace electric vehicle charging practices. In addition to a review of the current literature, the team interviewed sustainability leaders in 24 organizations across the United States. The findings reveal that while still most common in Europe and in U.S. coastal states, the speed of EV adoption makes creating the charging infrastructure an imperative for both the public and private sector. Leading organizations have made a solid business case for providing workplace charging and other EV related employee incentives or benefits. Below are some key findings of the study:
- Employers recognize that demand for charging will only grow; in many cities such as Portland and San Francisco EV charging in workplace parking lots is already both an expectation of employees and a city mandate.
- Business plays an important role in facilitating EV adoption; providing EV charging to employees is increasingly easy to justify to corporate executives.
- Providing charging at the workplace increases employee satisfaction and makes it easier to attract and retain workers.
- Supporting EV commuting and investing in EV fleets help organizations meet their greenhouse gas reduction targets.
- Employers are worried less about upfront costs and are thinking long-term about strategies to optimize their investment.
Key strategies to maximize benefit
To get the most out of the investment in workplace charging stations, the corporation and other organizations participating in this research study focused on these four key implementation strategies:
1. Assure availability
What the study participants learned is that while you may not see a lot of EVs in your parking lots now, they are coming and they catch on faster once workplace chargers become available. Bank of America, for example, saw a 50 percent increase in the number of EV commuters in just one year after installing chargers, reinforcing the theory that EV adoption is mostly hindered by a concern about being able to charge away from home.
In trying to determine how many chargers to provide, the participating organizations often underestimated the demand and recommended thinking ahead when planning.
Once available, chargers become an important amenity to employees. Study participants reported not only increased satisfaction with the workplace, but ncreasingly, an expectation that chargers be available making them part of nearly all our participating organizations’ recruiting and retention packages. In trying to determine how many chargers to provide, the participating organizations often underestimated the demand and recommended thinking ahead when planning. Some progressive cities such as Salt Lake City and Duluth, Minnesota are beginning to mandate chargers in all new construction. The required number varies from 1 to 5 percent of spaces depending on the jurisdiction. Forward-thinking businesses, such as those in our study, believe these requirements are conservative and plan to expand the number of available chargers. LinkedIn, for example, which covers about 10 percent of parking spaces with EV chargers, is building toward a target of 20 percent.
2. Allow dynamic pricing
Most study participants saw value in providing free charging for employees. What they have learned is that it not only builds employee satisfaction, but also encourages EV adoption. While there is a strong commitment to providing free charging, an increasing number of organizations are opting to charge fees for lingering at the stations. In an effort to optimize the use of the charging stations, it is common to assess a fee after a car has been parked at a charger for more than four hours. This is made possible by using "smart" chargers — chargers connected to a network that allows managers to not only tailor fee structures but to send alerts to users as well as monitor usage and capture greenhouse gas-related data.
3. Optimize energy management
Study participants understood that the expected increase in demand for workplace charging will require more attention to power management. In addition to meeting the extra demand without over-tapping their capacity, they also want to assure the most efficient use of the charging infrastructure. Power management features available on some chargers enable site managers to maximize the number of charging ports before having to upgrade existing wiring or panels. These systems also enable management to assure that charging EVs never exceed the maximum aggregate electrical load, thus avoiding potential peak load charges. These systems also enable managers to control when and how much energy is being tapped to maximize consumption during those times of the day when renewable power is most plentiful.
Organizations serious about using an EV program to lower their carbon footprints may find an increasing need to invest in renewable power.
4. Source from renewable power
Most study participants power their chargers with lines from their existing building panels, so the electricity comes from the same generation source as their buildings. This is the most cost-effective method for powering the chargers, but it links the carbon impact to the generation source provided by the region’s utility. If the local utility is powered mostly by coal generation plants, the carbon savings may be negligible.
Organizations serious about using an EV program to lower their carbon footprints may find an increasing need to invest in renewable power. Amazon, for example, plans to increase its renewable energy usage from 40 percent to 100 percent by 2030. Bank of America already sources 91percent of its energy from renewable sources and will be rolling out on-site solar generation at more than 60 of its locations in the next two years. A number of the research participants already have invested in their own on-site generation, and 55 percent report that they are looking to add or expand this capability in the future. When self-generation is not feasible, organizations have increasing opportunities to source renewable energy through their utilities.
Electrification of vehicle fleets will markedly reduce greenhouse gasses. Employers have much to gain and much to offer in this transition. Offering on-site, electric vehicle charging not only will contribute to the infrastructure needed to speed this transition, but also benefit companies that offer this amenity.