Managing electrical services is one of the biggest challenges in property management. While electrifying buildings and installing EV charging systems is commendable, property managers often face several obstacles that complicate the process. Aging infrastructure can limit service expansion, while inconsistent pricing and complex vendor relationships create significant hurdles. With electric vehicles on U.S. roads projected to reach 48 million by 2030, according to research by McKinsey & Company , effectively implementing EV charging remains a top priority for property managers and owners. However, the current landscape reveals only around 50,000 public charging stations across the country, as noted by Forbes , highlighting a significant gap that many companies are working to address.
To support property managers, several leading providers are introducing innovative solutions. Such advancements reflect a growing trend in the industry to tackle these challenges collaboratively. In this context, Qmerit Chief Operating Officer Oliver Phillips offers insights for property managers exploring solutions.
Key Challenges in Electrical Services Management
As mentioned previously, cost remains one of the biggest challenges in managing electrical services. For instance, Forbes notes that including EV charging stations at the property level can be considerable, as “Level 3 chargers, which can charge a car in under an hour, can cost more than $81,000, while Level 2 chargers, which charge a vehicle within four hours, cost around $5,500.” These steep costs also raise concerns about whether existing infrastructure can accommodate the requirements of EV charging systems. Phillips highlights that “the overriding issue for property managers is how to ensure consistent pricing and outcomes while juggling multiple sites and geographies.” This underscores that addressing the high costs -of EV charging stations is part of a larger challenge of managing electrical services across various locations.
Electrical installation is another significant cost factor. According to McKinsey , electrician labor can account for 15 to 30 percent of up-front costs for public alternating current (AC) chargers. Choosing the right electrician teams for these installations is a complex decision. Phillips provides insight into the skilled labor needed for EV charging: “Put simply, there are close to 50% fewer electricians in the US than 25 years ago due to more electricians retiring each year than entering the trade.” Given the limited workforce, securing quality is crucial. As he states, “Property managers’ ability to secure multiple bids is limited, and the qualifications (certifications, licenses, insurance, etc.) of the contractors need to be tracked and confirmed for this type of work. There is also the challenge of managing contract terms and conditions and vendor input for revolving contractors, particularly when multiple projects or facilities are involved.”
Innovative Solutions for Property Managers
While property managers may face various challenges in implementing electric vehicle charging stations, there are effective solutions that can help. By offering charging stations as amenities, property managers can meet the rising demand for electric vehicles, attract tenants and boost property value. A Buildings article provides a few essential tips for what to keep in mind when installing EV charging stations:
- Importance of Charging Networks: Today's buildings must utilize a charging network, as earlier pilot programs could operate with non-networked chargers.
- Benefits of Cloud-Based Software: Cloud-based software enables building managers to manage access, set pricing for EV drivers, view station analytics and download essential reports for tax compliance based on usage or revenue.
- Emerging Technologies in EV Charging: Automated Demand Response (ADR) and ISO 15118 enable smart load management, allowing businesses to reduce power during peak periods and utilize EV batteries for backup storage, thereby supporting grid resiliency and participating in cost-saving utility programs.
These strategies all highlight the importance of an EV site walk, where property managers can identify necessary steps before making changes. Phillips concurs, stating, “As part of the evaluation, understanding a project’s impact on the building’s electrical load and capacity is critical, as well as the performance impact of load management strategies on technology output.”
Best Practices and Future Outlook
As competition for installing EV charging stations at commercial and residential properties increases with electric vehicle popularity, several tips can help property managers and owners get ahead. McKinsey suggests that “building owners who choose to run electrical conduit to parking spaces during initial construction (at less than $50 per parking space) can install chargers in the future with no additional civil construction costs and potentially save thousands of dollars.”
Additionally, Buildings emphasizes the importance of creating EV Ready infrastructure, which can lead to significant savings. Their report states, “According to an analysis by the International Council on Clean Transportation, the average national installation cost per Level 2 unit significantly decreased from $2,836 for a single charger to $2,305 for installations with six or more chargers.” As a result, building owners planning a small installation of two to four charging stations should also prepare extra parking spaces to minimize site work during future installations.
It’s also crucial for building owners to explore federal and state incentives to reduce project costs. Phillips agrees, stating that “local utilities can pitch in by providing incentives that offset the cost of bringing in supplemental power for EV charging.” Overall, installing EV charging stations at your property is an important consideration. As Phillips emphasizes, “Electrification combines economic impact with environmental advantages and building performance and comfort benefits; there is a driver for each argument for electrification. We believe expansion in the built space will keep pace with the growth of transportation electrification over the remainder of this decade.”
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