As the summer travel season approaches, more and more Americans are taking traditional road trips, but one thing that’s different is the growing number of electric vehicle owners. By 2030, it’s estimated that there will be 48 million EVs on American highways. Given this trend, the hospitality sector plays a crucial role in the shift from gas vehicles to EVs as travelers seek out hotels equipped with EV charging stations.
Reasons why hotels need EV charging stations
There are several compelling reasons why hotels need to consider installing EV charging stations:
- Customer Attraction: As more drivers opt for EVs, businesses need to accommodate these vehicles to attract and retain customers. Hotels are particularly well-suited for this, as they often serve as a home away from home where EV drivers will want to charge their vehicles overnight. Providing charging facilities can increase occupancy rates and overall room nights. Additionally, EV drivers tend to have more disposable income, meaning they are more likely to spend at hotel restaurants, shops, and other services.
- Environmental Leadership: Installing EV charging infrastructure is a tangible way for hotels to support clean transportation initiatives. This not only attracts environmentally conscious consumers but can also qualify hotels for sustainability-based tax incentives and other benefits such as LEED certification points and carbon credits.
- Filling Infrastructure Gaps: There’s a projected need for approximately 20 times more charging stations by 2030 than in 2023, particularly in rural areas. By providing charging infrastructure, hotels in these areas not only meet a crucial need but can also draw in tourism and potentially qualify for tax incentives or funding from various levels of government.
- Revenue Generation: EV chargers can serve as an additional source of revenue for hotels, as they can charge fees to guests and the general public for using the charging stations.
What type of EV charger should hotels choose?
When it comes to choosing the type of EV charger to install, commercial Level 2 charging stations are often the most appropriate for hotels. These chargers can fully charge an EV in about four to eight hours, making them ideal for overnight guests. Furthermore, hotels can set a usage fee for these chargers, ensuring that drivers pay for the electricity they consume.
For more upscale hotels with amenities like a popular restaurant or valet service, DC fast chargers might be a consideration. Although these are more expensive to install and aren’t compatible with all EVs, they can charge an EV in under an hour, making them a valuable amenity for some guests. Hotels can also allow the general public to use these chargers for a fee.
Finally, it’s important to note that networked EV chargers can greatly increase a hotel’s visibility among EV drivers. These chargers are listed on mapping services like PlugShare, Google Maps, and vehicle navigation systems, ensuring that drivers are aware of the available charging stations. Hotels can manage their chargers through these networks and even set special pricing for guests versus the general public.
Alternative Fuel Infrastructure Tax Credit
There are several federal funding programs available to assist hotels in the United States with the installation of EV charging equipment, making it a viable and beneficial investment for many properties. The Alternative Fuel Infrastructure Tax Credit provides eligible businesses a tax credit up to 30% of the cost of installation up to $100,000. The credit has certain stipulations that must be met to be eligible to receive the full 30%:
Equipment must be installed in these locations:
- The census tract has a poverty rate of at least 20%; or
- “Metropolitan and non-metropolitan area census tract where the median family income is less than 80% of the state median family income level”
- Businesses must meet prevailing wage and apprenticeship requirements
With the increasing number of electric vehicles on the road this year, it’s imperative for proprietors of hotels, motels, and bed & breakfasts to start implementing charging solutions for drivers. Providing charging facilities for EV drivers not only gives them a compelling reason to select your establishment over others, but also positions you as a forward-thinking enterprise, and contributes to the national goals of EV charging infrastructure. Ready to kick-start this? Reach out to SETEC POWER for further details.
