EV Fast Chargers Grants Announced
This week the NJ DEP announced the availability of funding for businesses looking to install battery electric vehicle fast chargers. This offering is a result of new funds in the State budget and is part of the “It Pay$ to Plug In” program.
The State will pay for 80% of the cost of an eligible project, up to $100,000. There may also be other supplemental grants from the utility companies that can be added on top of the DEP grant. The project must have at least 2 ‘ports’, which can be one charger with space for two cars if it can provide a full fast charge to both vehicles simultaneously.
Grant submissions are due by October 25th, but if you’re interested, you should get to work immediately in order to meet that deadline as it requires a fair bit of work. In addition to getting 3 quotes from charger providers, you also need to check if your location has enough electric capacity, and large portions of the state do not. If your spot doesn’t have capacity, then you need an evaluation from the utility and that can take as much as 4 weeks, which is a problem when the application window is only about 8 weeks.
Whether it’s worth it to install EV charging is a question that may have a different answer for every location. While about 11% of new light duty vehicle registrations are EVs, in terms of the vehicles on the road, over 97% are still using gasoline exclusively. Of that 3%, most of them do most of their charging at home–so the actual customer base for fast charging is quite small. Beyond the share of the cost, which even after the grant may still be $20,000+, you’re also losing space. In the most densely populated state in the USA, many station locations are small enough as it is, and permanently losing two parking spaces plus the room the charger takes up can be a big commitment for many existing businesses, especially in North Jersey.
The economics of an area should also factor in. A station that is on or very near a highway exit will likely get more use as EV drivers on long trips can easily stop by. Given the costs of EVs, wealthy areas like Princeton or Montclair will see more EV conversion than lower or even middle-income towns. On the other hand, a wealthy community likely means the EV owner has their own home that they can easily charge at. Offering fast charging near apartment buildings could be a better move since they are less likely to have any kind of charging option and may need commercial fast charging to provide all of their power.
The speed of EV adoption is slowing, in no small part because of the elimination of various incentives for EVs by both the federal and state government. The ban on new gas and diesel powered vehicles that had been set for 2035 was repealed by Congress, and can’t be reinstated without a further act of Congress.
Still, over the coming years the EV share of the vehicle fleet will likely continue to increase at least somewhat, and if a location has a c-store, then installing a charging station that forces a motorist to stay in place for 20 minutes may be a good way of selling them a cup of coffee or other high-margin store items.
You may also want to consider that while there may be more EV traffic in 5 years, there may not be any grants available. Once more of an EV charger network is built out, the State will likely stop offering grants for installation, and indeed a possible Republican governor next year will likely not make this funding a priority given the state’s rough fiscal outlook.
You can read the details of what it takes to apply from the State HERE. They also include links to utility company websites that show whether any specific location is currently capable of hosting a fast charger or whether it will need some kind of upgrade by the utility.
If you’re interested and would like help, please contact Nick@njgca.org or 732-256-9646.
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