With electric vehicle (EV) sales in the United States expected to grow to approximately 29.5% of all new car sales in 2030 from about 3.4% in 2021, there is a high chance that whatever make and model of vehicle the readers of this article like best, the next car they will acquire will be an EV.
A revolutionary shift towards EV adoption is indeed happening right before our eyes, said National Land Realty’s Angeliina Lawson in a press release.
In the meantime, the federal government is helping promote EV adoption in multiple ways. For example, the extension of tax credits for EV buyers (by removing the previous 200,000 vehicle-per-manufacturer caps) was part of the newly proposed green energy bill.
The emergence and eventual total replacement of vehicles with a combustion engine by EVs is a broad trend that no one can reverse. Land investors can profit from this trend by investing in properties suitable for EV charging stations, which the country will need many more in the coming years.
Federal Government Subsidies for EV Charging Infrastructure
The federal government is not only promoting the adoption of EVs but has also started granting subsidies for landowners that build and improve EV charging infrastructure on their land. For example, in Kansas, there is more than $2M worth of land flagged for EV charging infrastructure. A total of $39M is still available for the state to administer to help future landowners develop EV charging points. Other states have equal access to these funds and much more land to distribute.
The most suitable land for developing EV charging infrastructure is small tracts of land close to power lines found near highways. People will make a tiny detour to charge their cars but will not drive more than 10 miles. These small areas can be bought up and turned into EV charging stations.
Another opportunity, which is perhaps more niche, is RV parks. RVs are often followed by a tail car, which will become an EV in the next few years. Of course, the RV will eventually become electric; Ford already offers an EV truck that can tow up to 11k lbs! RV parks already have 30V/50V outlets; it would not take much re-engineering to build and facilitate charging visitor’s vehicles.
Many RV parks are desperate for funding to grow their businesses and possibly expand beyond their home states. Unfortunately, the current economic climate is not conducive to raising funds, and having grant money up front at their disposal will help increase the parks’ odds of success considerably.
A Competitive Advantage
The availability of EV charging facilities is gaining in importance so quickly that LandGate.com, a marketplace for landowners looking to lease or sell their land, has already incorporated this into their desirability ranking for leasing rights.
Nobody can tell what the future market of charging services will look like, but companies such as Ford, GM, and Tesla might consider offering their own “charge card” programs allowing people to charge at a fee rapidly. In contrast, non-rapid charges might happen at no cost or as part of a program to attract people to a nearby restaurant or shopping center (a sponsored freemium model, so to speak).
While the car manufacturers have not decided yet on what role they should play, many retailers, among them market leaders like Walmart and Costco, are already investing in installing EV charging stations because they want to make this available as a convenience service to their customers.
No matter what EV charging programs and services will be put in place by whom, one thing is clear: those with the charging infrastructure will stand to profit. With a rapidly growing demand for infrastructure and a federal government eager to ease and promote the transition to EVs through subsidies, there is an opportunity to be one of the first movers in the market and acquire the best-located parcels of land while they are still available. Land investors looking to diversify their investments and profit from the green energy revolution should not hesitate.
Angeliina Lawson is a land professional with National Land Realty, the nation’s fastest-growing real estate land brokerage.