mikehmb
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- First Name
- Mike
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- Jan 12, 2022
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- My name is Mike, and I have a (car) problem
I've always wondered how the economics of this would work out, so back of the napkin here:So, my neighbor in Kona (another EV guy) was going to approach me about buying and running an L3 fast charging station on island. We’re both part time island residents with primary residences on the mainland.
Anyway, while not Rivian specific, the math on these L3’s don’t make much sense - without government subsidies, which IMO the government should be facilitating for infrastructure development (but becomes a loaded political issue).
Regardless, the cost of the unit my neighbor found was about $95K, but with government incentives, it was less than half that. But, one still needed to pay for a maintenance and repair plan, which was about $10-$15K annually.
i don’t see how people make money off these - even with government incentives.
All I really want to say (without making this a political statement) is that knowing the potential cost, I personally don’t complain about L3 charging station prices. The more the better and if someone is going to install one, by all means try to make some money off it. Also, for an emerging technology and infrastructure, IMO government incentives are badly needed.
Cost of electricity is about $0.40/kWh for high-use business (I'm sure there are discounts especially for EV use, just don't know how much)
Charging $0.55/kWh seems reasonable on the island, so $0.15 gross per kWh
Assuming 20% average utilization (that seems high over a 24 hour period?), and 125kW output avg per session ... 600Kwh per day, x365, x $0.15, is about $33k Gross annual, which doesn't take into account maintenance and initial acquisition costs, not to mention land use.
Really, really hard to make this profitable unless you can negotiate land-use rights (or own big chunks of land), and control costs of the dispensers (eg. vertically-integrated service).
Would love to hear how you and your friend progress if you decide to really dig into the #s.
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