How to start an EV charging business from the ground up

Starting an EV charging business can be a rewarding venture, blending technical skills with sharp business acumen. With the market already valued in the tens of billions and climbing, there's consistent demand for chargers at apartment buildings, shopping centers, and office parks.

This guide will walk you through the practical steps, from selecting the right location and securing funding to navigating permits, to help you launch a successful EV charging business in the U.S.

Step 1: Create your business plan and validate your idea

Your first move is to analyze local demand. Use the U.S. Department of Energy's Alternative Fuels Data Center to check EV registration statistics in your target county. Also, map existing public chargers with apps like PlugShare to identify underserved areas with high traffic.

With that data, examine what competitors offer. Note their pricing models (per kWh or per hour), charger types, and customer reviews. This information reveals service gaps you can fill, such as a lack of fast chargers near a busy highway exit.

Understand your startup costs

Many new owners focus only on the hardware price and forget about installation, which can be a large part of the budget. A commercial Level 2 charger costs between $2,500 and $7,000, while a DC Fast Charger starts around $40,000 and can exceed $100,000.

Installation can add another $6,000 to $50,000 or more, depending on site complexity, permits, and electrical work. In addition, expect to pay $300 to $600 annually per charger for network software and payment processing.

Here are 3 immediate steps to take:

• Map competitor stations within a 5-mile radius using the PlugShare app.
• Look up your state's EV registration data on the Alternative Fuels Data Center.
• Request two preliminary installation quotes from licensed commercial electricians.

Step 2: Establish your legal entity and secure permits

Most new owners form a Limited Liability Company (LLC). It protects your personal assets if the business is sued and offers pass-through taxation, meaning profits are taxed on your personal return. A C Corporation is an alternative if you plan to seek venture capital.

Once you decide, file the formation documents with your state's Secretary of State. You will also need an Employer Identification Number (EIN) from the IRS, which is free and can be obtained online in minutes. This is your business's federal tax ID.

Handle your permits and licenses

You will need a general business license from your city or county. For the chargers themselves, expect to apply for electrical and building permits. An electrical permit might cost $50 to $350, while a building permit can range from $100 to over $2,000, with a 4-8 week approval time.

A frequent delay comes from underestimating these timelines. It is a good idea to contact your local planning department and utility company as soon as you have a potential site. They are the primary agencies that will review your plans and approve your connection to the power grid.

Here are 4 immediate steps to take:

• Choose between an LLC and a C Corp for your business structure.
• Apply for a free Employer Identification Number (EIN) on the IRS website.
• Contact your city’s planning department for a list of required permits.
• Register your business name with your state's Secretary of State.

Step 3: Secure your insurance and manage risk

With your legal entity formed, the next step is to protect it. Insurance for an EV charging business is not one-size-fits-all. You will need a few different policies to cover your bases, from customer accidents to equipment damage.

Understand your insurance needs

Start with General Liability insurance, which covers third-party injuries or property damage. A $1 million to $2 million policy is standard, with annual premiums often between $600 and $2,000. Also, get Property Insurance to protect your expensive chargers from theft, fire, or vandalism.

A common oversight is to insure chargers for their purchase price instead of their full replacement cost, which includes new hardware and installation. This mistake can be costly if you need to file a claim. You might also consider professional liability coverage if you offer consulting or management services.

Speaking of insurers, you could get quotes from providers like The Hartford, Chubb, or Travelers. It is often best to work with a commercial insurance broker who understands the specific risks of the energy or technology sector. They can find policies that cover electrical surges or payment system cyber threats.

Here are 4 immediate steps to take:

• Request quotes for a $1 million general liability policy.
• Confirm your property insurance covers the full replacement cost of your chargers.
• Ask potential insurers about specific coverage for vandalism and electrical surges.
• Contact a commercial insurance broker who works with technology businesses.

Step 4: Select your location and equipment

Look for sites in commercial or mixed-use zones with high traffic, like retail centers or office parks. Each charger needs a standard 9x18 foot parking space, plus clearance for electrical cabinets. Your local planning department can confirm the zoning requirements for your target properties.

When you negotiate a lease, you might propose a revenue-share model instead of a high flat rent. This lowers your initial risk. Also, ensure your lease agreement explicitly gives you the right to perform necessary trenching and electrical upgrades on the property.

Find the right hardware

Your main hardware decision is between Level 2 chargers (around $2,500-$7,000) and DC Fast Chargers ($40,000+). Companies like ChargePoint, Blink, and EVBox are major suppliers that provide both hardware and the network software needed to process payments.

Many new owners get excited about a location before they confirm its electrical capacity. Before you sign a lease, have an electrician perform a site assessment. An unexpected panel upgrade can add tens of thousands of dollars to your setup costs.

Here are 4 immediate steps to take:

• Identify 3-5 potential locations in high-traffic commercial zones.
• Ask property owners if they are open to a revenue-share lease model.
• Get a preliminary site assessment from an electrician for your top location.
• Request hardware and network pricing from suppliers like ChargePoint or Blink.

Step 5: Set up your payment processing

Most EV charging networks let you choose your pricing model. You can charge per kilowatt-hour (kWh), per hour, or offer monthly subscriptions. Your network software, provided by your hardware supplier, will manage these transactions and customer billing automatically.

When you evaluate payment options, focus on the transaction fees, which directly affect your profit. Many network providers charge a percentage plus a flat fee per transaction. Some owners overlook these costs, which can add up quickly across multiple chargers.

Set up on-the-go payments

For payments outside the station, like for a mobile charging service or to sign up a corporate fleet account, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and it is done.

At just 1.99% per transaction with no hidden costs or extra hardware needed, it is a cost-effective option. Other payment solutions often have commission rates that are higher. It is particularly useful to process on-the-spot payments for new service agreements.

• Get Started: Download JIM app for iOS
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone
• Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers

Here are 3 immediate steps to take:

• Decide between per-kWh and per-hour pricing for your chargers.
• Review the transaction fee structures of your top hardware network providers.
• Download the JIM app to see how it works for on-the-go payments.

Step 6: Secure funding and manage your finances

Explore your funding options

An SBA 7(a) loan is a popular choice, offering up to $5 million. You will generally need a credit score of 680+ and a detailed business plan. Interest rates typically range from the Prime rate + 2.75% to 4.75%, so your monthly payments are predictable.

Also, look at federal incentives. The Alternative Fuel Infrastructure Tax Credit allows you to claim 30% of the cost, up to $100,000, for each property where you install chargers. You can file for this credit using IRS Form 8911. Many states and utility companies offer their own rebates too.

Calculate your working capital

Some owners focus so much on hardware costs that they underestimate their operating budget. You should have at least $15,000 to $30,000 in working capital. This covers your first six months of rent, insurance, network fees, and utilities before your station generates consistent income.

Here are 4 immediate steps to take:

• Check your credit score to see if you meet the 680+ threshold for an SBA loan.
• Research the Alternative Fuel Infrastructure Tax Credit using IRS Form 8911.
• Visit your state’s energy office website to find local EV charging grants.
• Draft a six-month operating budget to calculate your working capital needs.

Step 7: Hire your team and set up operations

Build your technical team

You will likely need a Field Service Technician to handle maintenance and repairs. Look for a licensed electrician with an Electric Vehicle Infrastructure Training Program (EVITP) certification. Salaries for this role typically range from $55,000 to $80,000 annually, depending on experience.

Some new owners try to use a general electrician for repairs, but this can void your hardware warranty. It is better to have a specialist who also has manufacturer-specific training from companies like ChargePoint or Blink.

Manage your daily operations

A single technician can usually manage 50 to 100 chargers if they are geographically clustered. You can use field service software like Jobber or ServiceTitan to schedule preventive maintenance and respond to outages quickly. These platforms help you track work orders and technician availability.

Your network provider’s dashboard will alert you to station faults, but a formal maintenance schedule is still a good idea. This helps you prevent downtime, which is a primary source of customer complaints and lost revenue.

Here are 4 immediate steps to take:

• Post a job description for a technician with an EVITP certification.
• Budget for manufacturer-specific training for your new hire.
• Compare scheduling features on field service software like Jobber.
• Create a quarterly preventive maintenance checklist for your chargers.

Step 8: Market your business and acquire customers

Optimize your digital presence

Most drivers will find you through EV charging apps, so your first step is to get listed. Verify your station appears correctly on PlugShare, A Better Routeplanner (ABRP), and your network’s own app. This is your most effective marketing with a customer acquisition cost (CAC) near zero.

A common mistake is to set up these listings and then forget them. An incorrect map pin or outdated pricing leads to bad reviews fast. You should check your public information on these apps quarterly to keep everything accurate.

Build local partnerships

Once your digital footprint is solid, reach out to nearby businesses. You could offer a referral code to a local hotel or create a "charge and dine" package with a restaurant. This lets you tap into their existing customer base for very little cost.

You can also approach local companies with vehicle fleets or apartment managers. Offer them a custom monthly subscription for their drivers or residents. A single fleet contract can provide a steady revenue baseline that is more predictable than public charging alone.

Here are 4 immediate steps to take:

• Verify your station appears correctly on PlugShare and A Better Routeplanner (ABRP).
• Draft a simple partnership proposal to share with three nearby businesses.
• Identify two local companies with vehicle fleets to contact about a subscription.
• Set a quarterly calendar reminder to audit your online map listings.

Step 9: Set your pricing strategy

Your pricing model directly shapes your revenue. The most common approaches are charging per kilowatt-hour (kWh), per hour, or a flat fee per session. Many network providers also support dynamic pricing, which adjusts rates based on the time of day or station demand.

Calculate your costs and profit margin

Your price must cover more than just electricity. Network software fees often take 5-10% of revenue, and you also have rent and maintenance. Many new owners get surprised by demand charges from their utility, which are extra fees for peak power usage that can erase profits if not factored in.

With your costs clear, aim for a 100-200% markup on your direct electricity rate. If you pay the utility $0.15 per kWh, a retail price between $0.30 and $0.45 per kWh is a solid starting point. This target should give you a healthy gross margin before other operating expenses.

Once you have a target price, check what competitors charge using apps like PlugShare or A Better Routeplanner (ABRP). Look at their rates for both Level 2 and DC Fast Chargers, as customers expect different pricing for each. Adjust your price to stay competitive but profitable.

Here are 4 immediate steps to take:

• Decide on a primary pricing model: per-kWh, per-hour, or session-based.
• Ask your utility company for a full breakdown of commercial electricity rates, including demand charges.
• Analyze the pricing of three competing stations within a five-mile radius using PlugShare.
• Calculate your break-even point and target profit margin per kWh.

Step 10: Control quality and scale your operations

Maintain your service quality

Your primary quality metric is charger uptime. You should aim for 97% or higher, as this is the industry benchmark. Your network software dashboard tracks this for you, so check it daily. Consistent downtime is the fastest way to lose customers.

While uptime is key, do not ignore customer feedback. Monitor your station’s ratings on PlugShare. A score that drops below 8 out of 10 often signals non-technical problems like poor lighting, confusing signage, or blocked parking spaces that need your attention.

Know when to scale

Use your station’s utilization rate to guide expansion. Once a location consistently hits 15-20% utilization, it is time to add more chargers or find a new site. This prevents long wait times for drivers and shows you have a proven, profitable location.

For staffing, a good rule of thumb is to hire a new field technician for every 50 to 75 chargers you manage. This ratio helps you maintain quick repair times and service quality as your business grows. Exceeding it can stretch your team too thin.

Here are 4 immediate steps to take:

• Monitor your network dashboard to maintain a 97%+ uptime rate.
• Check your station’s PlugShare ratings weekly for customer feedback.
• Calculate your station utilization to identify when it exceeds 15%.
• Plan to hire a new technician as you approach the 50-charger mark.

You have the roadmap to launch your EV charging business. Remember that consistent uptime and a smooth driver experience build a loyal customer base. A broken charger is worse than no charger at all. With a solid plan, you are ready to build your network.

And for payments on the go, like when you sign a new fleet account, JIM turns your phone into a card reader. With a flat 1.99% fee and no extra hardware, it simplifies how you close deals anywhere. Download JIM to be ready for every opportunity.