Recently Kitty Adams Hocksbergen of Adopt A Charger asked – Why has EV Charging Infrastructure Gotten So Expensive?

The electric vehicle (EV) industry has rapidly grown over the years. With the increasing demand for electric vehicles, the need for electric vehicle charging stations has also grown. However, one major issue that has been a major setback to the growth of the industry is the high cost of EV charging infrastructure. In this blog post, we’ll be discussing why the cost of EV charging infrastructure has risen so high.

The first reason why the cost of EV charging infrastructure has gotten so expensive is due to the high cost of soft costs associated with permitting, networking, and other associated expenses. It is essential to have partnerships with local utility companies, government officials, and other industry stakeholders to build and develop infrastructures. However, obtaining permits, licenses, and other approvals from regulatory boards for setting up charging stations can be a time-consuming and expensive process.

The second significant reason for the high cost is the high executive compensation in the EV charging industry. Some companies have excessive executive compensation, which is quite shocking considering EV charging stations are glorified electrical outlets:

EV Charging CEO Compensation

EVgo, CEO Cathy Zoi – $4,600,000 for 2021
Blink Charging, Michael Farkas – $18,003,751 for 2021
ChargePoint, Pat Romano – $58,679,085 for 2022
Volta – Scott Mercer – $179,000,000 for 2021

Another factor that has contributed to the high cost of EV charging infrastructure is the need for renewable power sources. Many charging stations use solar panels and wind turbines to power the stations, which are sustainable and eco-friendly power sources. However, they require initial investment costs to install, which increases the overall cost of infrastructure development.

Additionally, the EV charging industry remains a relatively young and developing industry, there is a lack of economies of scale. The high costs of materials such as transformers, controls, and software, are high, and these are cost-intensive expenses that stymie the growth of the industry.:

It is clear that there are various reasons behind the high cost of EV charging infrastructure, such as excessive executive compensation, high soft costs associated with permitting and licensing, renewable power requirements, and lack of economies of scale. However, policymakers and investors play a crucial role in developing infrastructure, and so there is the need to balance such high costs with the benefits of a cleaner environment and carbon emissions reduction. The EV industry should work on collaboration with stakeholders with a better business strategy, and further investment in charging infrastructure, like grants and rebates, could help support smaller companies to compete. We hope that this post has shed some light on the complexities of the charging infrastructure landscape, and inspired action to make driving EVs more accessible and affordable.