The Expert Podcast

The future of electric vehicle rollout has a lot to do with charging station availability and capacity. One of the biggest holdups is rolling out and building those charging stations fast enough. There are major companies that install these stations in bulk and have networks all over the country. Additionally, individuals are putting them in company parking lots, apartment complexes, and even at private homes. However, the problem lies in the difficulty of getting these stations built, as highlighted in a recent article from the Wall Street Journal.

This new Inflation Reduction Act, passed this week, provides incentives for installing charging equipment. The challenges, however, include difficulties in sourcing parts, obtaining approvals, and finding the necessary resources to construct the stations. Building these stations requires licensed electricians, contractors, and excavators, all of which can be hard to coordinate. Adding to the struggle, these professionals also face delays in sourcing the required parts.

For licensed general contractors, this could be an opportunity to enter the business of installing charging stations. If they can source the necessary parts and sign contracts, these projects could provide a steady stream of relatively small but lucrative jobs. Property owners may also benefit from incentives to invest in charging facilities, whether for employees or customers. For electric vehicle owners or potential buyers, the speed at which these charging stations are rolled out will significantly impact their experience and decisions.

The current plan aims to build 500,000 public chargers by 2030. While 2030 may seem distant, it’s only seven years away. Looking back, seven years ago was 2015, which doesn’t feel like a long time. The challenge becomes clear when you consider that only 124,000 chargers have been built over the past 10 years. To meet the target, the rate of installation must increase dramatically. Experts estimate that 1.2 million chargers will actually be needed by 2030, more than double the target.

Right now, the 124,000 existing chargers represent just 10% of what’s required, and these have taken a decade to build. Electric vehicle chargers have been installed since 2010, yet achieving the necessary scale within the next decade seems daunting. Manufacturing delays and installation challenges further complicate the situation. Companies like Tritium, which build fast chargers, have had to hire hundreds of people to scale up production.

According to experts, moving from early adoption to mainstream electric vehicle usage requires tens of thousands of chargers to be installed. Incentives are higher now, with the maximum tax credit per charger increasing from $30,000 to $100,000, and the program has been extended for another decade. Fast charging installations typically cost around $100,000 each, which includes tearing up pavement and other logistical hurdles.

This issue involves multiple industries: automotive, construction, and manufacturing. Coordinating all these elements is crucial to ensuring electric vehicles are widely adopted. Without sufficient charging stations, drivers risk running out of power mid-trip, especially in areas where chargers are scarce. Building the infrastructure to support EVs will determine how smoothly the transition to electric vehicles progresses.