Installing EV chargers on your property might seem straightforward at first glance. You get three quotes from different electrical contractors, network providers, or hardware suppliers, choose one, and install the chargers. But then, issues arise: the installer blames the hardware, the hardware provider blames the software, and the software company blames the network connection. If this sounds familiar, this article is for you.
The State of EV Charging
The EV charging landscape is akin to the wild west—uncharted, lawless, and populated by various players, each with their own approaches and viewpoints. Navigating this complex environment can be challenging, but understanding the key players and their roles can help you move your project forward.
The EV Charging Supplier Trifecta
At the highest level, there are three main “roles” in the EV Charging ecosystem that need to be considered and understood before buying EV Chargers.
Charge Point Operators (CPOs)
Hardware Providers
Network Providers
1. Charge Point Operators (CPOs)
CPOs are the entities that own and operate EV chargers. These can be property owners (referred to as "Site Hosts") or third parties who lease parking spaces from Site Hosts to install their EV infrastructure. Typically, CPOs handle the following:
Costs and Maintenance: Cover all costs related to installation, including design, engineering, permitting, utility upgrades, construction, and commissioning. They also manage ongoing network software costs and maintenance.
Revenue Model: Get paid by charging users on a per-minute, per-kWh, or some other basis.
Supply Chain Management: Manage contractors, service providers, hardware providers, and network providers.
Site Host Compensation: If the CPO is not the Site Host, they may compensate the Site Host either by increasing by providing some sort of business benefit (increased traffic, increased revenue, reduced costs, etc.) or by directly paying them.
Tip 1 : Think of third-party CPOs like ATM providers at convenience stores. The ATM owner/operator charges a transaction fee for the use of the machine, which they keep as revenue. The presence of the ATM drives traffic for the convenience store, which may also receive a fee for hosting the ATM. Similarly, CPOs ensure their chargers are operational because their revenue depends on it. |
2. Hardware Providers
Hardware providers sell the charging equipment. They might manufacture the hardware or source it from other manufacturers. Their business model is straightforward: they sell equipment to CPOs for cash.
Hardware providers come in many flavors.
Electrical Contractors: On smaller projects, electrical contractors often sell and install the hardware. They purchase the equipment, mark it up, and provide a single-source solution for infrastructure and installation.
Resellers: There are various resellers of EV charging hardware, including renewable energy specialists and online storefronts. They buy from manufacturers, mark up the products, and sell them to CPOs.
Manufacturers (OEMs): Original Equipment Manufacturers produce the EV chargers. For larger projects, OEMs might sell directly to CPOs, though this requires the CPOs to manage the project themselves, often with the help of consultants like First Harmonic Group.
Tip 2 : When buying hardware, think beyond the installation to the eventual maintenance and support of the chargers. Some hardware providers will be willing to talk through warranties and ongoing preventative and reactive maintenance upfront. Consider your team’s needs and skills - and make informed decisions about the long term before your purchase. |
3. Network Providers
Network providers operate the cloud software that enables more advanced user interactions with the chargers. While not all chargers require network providers, public charging stations almost always do in order to authenticate drivers, process payments, and track activities. Network providers typically charge CPOs a monthly fee, a portion of charging revenue, or a combination of the two.
Public Charging: In public charging scenarios, network providers are usually essential. The network brand often appears on the charging station and is who drivers contact for support.
Fleet and Workplace Charging: Some fleet and workplace applications can get away without contracting a charging network IF they can find a hardware provider that can still somehow harvest and share the data they need to run their business.
Some of the biggest network providers include publicly traded companies like Tesla, ChargePoint, Blink, ElectrifyAmerica (ElectrifyCanada) and EVGo as well as dozens of privately held network providers. These companies often make their own software, but occasionally license it from third party software companies.
The Complex Relationships
To complicate matters more, the network provider is also sometimes the CPO. It is not uncommon for network providers to develop their own sites and own/operate chargers using their brand. Here are some examples.
Tesla owns and operates the vast majority of its deployed superchargers as does EVGo. They are both CPOs and network providers.
Many gas station or convenience store brands operate their own networks like Shell’s vCharge network and Parkland’s On The Run network.
Many independent providers have started into the EV Charging business. Examples include Quebec’s Electric Circuit and Oklahoma’s Francis Energy.
Tip 3 : Many hardware providers are also network providers. These providers often refer to themselves as ‘vertically integrated solutions’ or ‘turnkey solutions’. Of critical importance is understanding how the hardware and network work together. Some hardware works only on its own network. There are industry standards that are intended to enforce and police interoperability between hardware and networks, but they are wildly misinterpreted and it is not uncommon for a customer to think they’ve bought either (1) hardware and a network that work together when in fact they do not OR (2) a network that they can swap out in the future whilst keeping their hardware when they cannot. |
Next Steps
Installing EV chargers involves more than just choosing the lowest bid. It requires understanding the roles of Charge Point Operators (CPOs), hardware providers, and network providers, and how they interact. By doing your homework, asking the right questions, and choosing the right partners, you can ensure a successful and reliable EV charging installation on your property. If this seems too complicated, we're here to help. We can navigate the questions and best practices to ensure a successful EV installation for both the short and long term.
Comentarios