Are There Any Disadvantages to Building a Tesla Supercharging Station in Your Area?

Building a Tesla Supercharging station in your area is not without its challenges. This article will explore some of the potential disadvantages, as well as the advantages and considerations involved in such a decision.

Disadvantages of Building a Tesla Supercharging Station

Projected Tesla Ownership Rates

First off, it's important to note that very few people own Teslas in most regions. This means that the immediate demand for a Tesla Supercharger in a residential or commercial area might be low. The market for EVs is growing, but currently, traditional vehicles like SUVs, midsize trucks, and sedans remain the most popular choices.

Grid Capacity and Load Demand Charges

The grid capacity in many areas is not sufficient to support the required load. Even if the grid capacity could potentially support the demands, the cost of implementing such a system would be prohibitive. Meralco Electric, for example, may charge high load demand fees, making it uneconomical to install and operate a Tesla Supercharger station.

Electrical Infrastructure

Residential breaker boxes typically range between 60-100 amperes at 220 volts. Attempting to divert level 2 charging at 40 amperages would result in extremely expensive electricity bills based on kW demand loads. This is due to the high load demand charges that would be incurred from the utility company. Furthermore, the presence of other energy-hungry appliances like air conditioners and water heaters can exacerbate the issue, making charging delays inevitable.

Public Charging Infrastructure

Public chargers for EVs are scarce due to similar reasons. Even if such chargers were to become available, the initial demand surges would likely not justify the investment due to excessive load demand and grid allocation. The long-term profitability of such ventures would be minimal, if not nonexistent, leading to a lack of interest from investors.

Considering these factors, owning a gasoline or diesel vehicle might still be the more cost-effective option. Hybrid electric vehicles (HEVs) are also a more practical choice for many consumers.

Advantages and Considerations

Convenience and Awareness

Building a Tesla Supercharger can bring numerous benefits. For one, it can generate more business for the landowner or their tenants. If the property hosts restaurants or retail stores, the higher visibility of a Supercharger can draw in more customers by association. This increased foot traffic can lead to higher sales and a more vibrant local economy.

Shared Profits and Revenue

Another factor to consider is the potential revenue sharing between the landowner and the EV charging company. If the Supercharger is part of a public charging network, the company operating the chargers may enjoy stable monthly income. However, it's important to note that in the case of privately-owned charging stations, the EV charging company may still experience some financial benefits, albeit in a smaller scale.

Future Growth and Market Opportunities

The rise of electric vehicles is an inevitable trend, and building infrastructure now can set the stage for future growth. As more consumers transition to EVs, the demand for charging stations will likely increase. Operators who establish themselves early on can benefit from economies of scale, thereby increasing their profit margins and market share.

Conclusion

While building a Tesla Supercharging station might present initial challenges, the long-term benefits and potential for economic growth cannot be ignored. Landowners and entrepreneurs who are strategic about location and management can turn this investment into a lucrative business venture. However, it's crucial to conduct thorough research and planning to ensure the viability of such a project.

Keywords: Tesla Supercharger, Electric Vehicle Charging, Grid Capacity