First, there were few electric vehicles on the road.
Then there were many.
EVs are expected to make up 30% of new cars by 2025 in the Unites States. That means multifamily operators can no longer wait and see when it comes to EV charging. (In fact, residents might take it upon themselves to install charging equipment. More on that later.)
Several key considerations can help property managers meet the growing demand for EV charging in a cost-effective and scalable way.
1. Your Infrastructure Probably Isn’t EV-Ready
“Existing infrastructure is and will continue to be one of the biggest challenges to adopting EV-charging technology,” says Max Kanter, principal and real estate vice chair at Much, a Chicago-based law firm.
That’s because many properties do not have the electrical capacity to charge power-hungry EV batteries. Older buildings especially may not have the bandwidth to accommodate Level 2 chargers, which provide a full charge in three to eight hours using 240-volt electrical service.
Retrofitting older buildings may involve significant upgrades, such as installing new transformers or upgrading existing ones. And the layout of a property’s parking lot or garage could require trenching and other extensive work to run power from the electrical panel to the charging stations.
Property managers can work with their utility provider or EV charging partner to assess their current infrastructure and identify what upgrades, if any, are needed. In some cases, utilities or other service providers may offer incentives or rebates to offset the costs of installation, which can make the process more affordable.
But there are alternatives to consider. Pete Gould, senior vice president of Boundary Stone Partners, a Washington, D.C., transportation and consultancy firm, says properties can get by with standard 120V outlets, or Level 1 chargers, for car charging. Equipping parking lots or garages with Level 1 chargers would be sufficient for overnight charging when residents aren’t in a rush. This approach would be cheaper and allow property managers to evaluate demand before investing in more sophisticated equipment.
Apartment communities are also experimenting with mobile charging units and scheduled charging sessions as temporary solutions.
2. Money Is Available if You Know Where to Look
Incentives available from federal, state, and local governments, as well as utility companies, can reduce or even eliminate the cost of EV charging infrastructure which can reach into six figures.
For example, some utility companies offer programs that cover up to 100% of the infrastructure costs, including wiring and trenching. These programs may also include additional resources, such as site planning assistance to help determine the best location for chargers and to evaluate the need for electrical upgrades.
But keeping track of what rebates are available and eligibility requirements can be tricky, as they’re always influx, Kanter says.
To help keep tabs of federal incentives, Gould offers this helpful resource. It’s a map of the United States that shows where business owners might be eligible for the 30C tax credit, also known as the Alternative Fuel Vehicle Refueling Property Credit, that covers 30% of the cost of qualified equipment and installation.
3. Plan for Scalability
Starting with a few charging points and expanding as demand grows allows properties to stay flexible and avoid overinvesting too early.
Networked charging stations are a good option for multifamily properties because they offer flexibility and scalability. These stations can manage power loads by throttling the amount of electricity delivered to each vehicle based on demand, which helps prevent overloading the building’s electrical capacity. Networked stations also integrate well with renewable energy sources like solar panels, further optimizing energy use.
Property managers also monitor usage patterns to predict future demand and expand accordingly.
4. In Some States, Residents Have a ‘Right to Charge’
Recognizing that EVs contribute to cleaner air and reduce greenhouse gas emissions, many states and cities are requiring new multifamily developments to include EV charging infrastructure. Kanter points to Denver, which requires that all new parking spaces in multifamily buildings have the infrastructure to accommodate EV charging, and a certain percentage of parking spots must have chargers installed. Other cities in Arizona, Colorado, and Illinois have similar requirements.
Additionally, some states have passed "Right to Charge" laws, which prevent property owners or HOAs from unreasonably blocking tenants from installing personal EV chargers in their assigned parking spots. Where landlords could implement restrictions based on aesthetic concerns, electrical capacity, or parking policies, right-to-charge limits these barriers so long as the installation meets relevant permitting and electrical codes.
By enacting these laws, states aim to address one of the biggest hurdles for EV adoption in multi-unit dwellings: access to convenient, reliable charging.