With a massive increase in the number of electric vehicles (EVs) on the road, it’s a great time to start (or expand) an EV charging business. Whether you have a primary business and want to expand your amenities to include EV charging or open a stand-alone EV charging station, today’s environment provides an open road toward success. Finding the best funding options for your EV charging business should be a top priority if you want to take advantage of that growth.
In 2024, 9.20% of all new vehicle registrations were EVs, a substantial increase from 2022’s 6.00%, according to Experian’s 2024 year-end review. The same review reported a similar rise in used vehicle registrations, with EVs comprising 1.03% compared with 0.43% in 2022.
If the rate of EV adoption continues upward, as forecasts predict, the EV charging industry could be one of the fastest-growing industries nationwide. But there’s one challenge for investors: procuring the cash to fund their new ventures.
Having come away from the latest EV Charging Summit with a wealth of information on funding sources, the Summit team has compiled a list of some of the best funding opportunities for EV charging business owners. Here are some of our favorites.
What Are the Possible Funding Options for My EV Charging Business?
Funding sources can vary by location. Federal, state, and local government programs, as well as private institutions, are well worth investigating.
Local Funding Options for EV Charging Companies
If EV ownership is high in your area, you might also be able to procure funding from local utilities, government agencies, or private investors, as a ChargeLab post points out. After all, they have much to gain from an EV boom in the area.
Increased utility use from EV chargers will bring in more utility revenue.
Successful new businesses will generate more tax revenue for local government agencies.
Private investors will receive passive income from interest on the loans they provide to businesses in fast-growing sectors, such as EV charging.
Local Government Funding
Certainly, urban areas have the highest rates of EV adoption. If you’re planning to start an EV charging business in one of those areas, finding public funding should be an easier lift.
For example, both San Francisco and Seattle provide businesses with rebates and grants for installing EV chargers, particularly in business districts and “high-density residential areas,” as an OBE Power post points out.
San Francisco’s funding covers both commercial and residential installations. There, companies that specialize in residential installations could drive up business by familiarizing homeowners with information about the available funds. Seattle offers rebates to companies that install EV charging stations in both multifamily developments and workplaces.
As EV adoption increases, so does the likelihood of more cities joining Seattle and San Francisco in offering funds to help build more charging stations. Not only will these stations generate more income from taxes, but they’ll also help keep the air cleaner for city residents.
Local Utility Funding
A growing number of local utilities have begun to offer rebates and other incentives to EV charging businesses and their customers. Utah-based Rocky Mountain Power, for instance, provides EV charging businesses with $1,000 rebates for installing a single-port charger or as much as $1,500 for multiples. If you plan to install DC fast chargers, you could receive a rebate of up to $42,000.
Don’t rule out local utility funding because you’re in a rural area, especially if your company installs residential EV chargers. Many rural utilities have climbed aboard the EV bandwagon, offering customers rebates or other incentives to install chargers on their properties.
Private Local Funding
Local businesses, such as hotels, shopping centers, supermarkets, or restaurants, might prove to be a source of funding through a partnership. Non-profit organizations, such as schools, chambers of commerce, or community service clubs, might also have funds to pay for charging stations on their grounds. If there are venture capital firms in your area, try connecting with them to gauge their interest in your project.
State Funding Options for EV Charging Companies
As EVs grow in popularity, many states have joined the rush to build EV charging stations for their residents. As with local communities, the tax revenue states will generate from these new businesses makes funding such ventures a winning proposal.
In addition, states that provide the capital for charging stations will attract more EV drivers to their states, both as residents and tourists. And as more studies demonstrate the health benefits of zero-emissions vehicles — even to passengers — compared to their internal combustion-powered counterparts, more states will likely provide such funding in the future.
Here are some of the top states with funding programs that help EV charging companies get off to a good start:
California
With its California Electric Vehicle Infrastructure Project (CALeVIP), the Golden State provides businesses and other organizations with hefty rebates to help them “pay for and quickly install EV chargers” in communities across the state. These rebates, which cover planning, installation, and equipment, prioritize “shovel-ready projects,” so have a plan in place before you apply.
However, the program does provide personal support in completing the application.
Texas
The “wide-open skies” of Texas are about to get a lot cleaner with the Texas Commission on Environmental Quality’s new EV incentives program. Funded by a court-ordered settlement with German automaker Volkswagen, the Texas Volkswagen Environmental Mitigation Program (TxVEMP) provides grants for building new EV charging stations and other infrastructure-related projects. The deadline for applying is August 31, 2025.
New York
With its Charge Ready 2.0 program, New York State offers rebates to companies installing EV charging stations statewide. Companies that locate their stations in disadvantaged communities are eligible for a $4,000 rebate, while those that install EV chargers at workplaces or multifamily properties qualify for a $2,000 rebate. If those multifamily properties are in disadvantaged communities, companies can earn a $2,500 rebate for each charging port they install. Fleets qualify for rebates of $1,000 per port.
Additionally, businesses that invest in EV charging are also eligible to take a $5,000 tax credit for each charging station they install. Alternatively, EV charging companies can choose to write off 50% of the cost of properties on which they install EV chargers.
Pennsylvania
Pennsylvania’s Driving PA Forward Initiative provides rebates for companies that build both Level 2 and DC fast charging stations for light-duty vehicles. Rebates can cover the lesser of either a percentage of their project’s costs (50% to 80%) or a maximum dollar amount ranging from $3,000 to $4,000 per plug.
Illinois
This Midwestern state offers incentives for two facets of the EV charging industry. First, it provides tax credits to companies that manufacture EV chargers. Manufacturers who invest at least $20 million and create a minimum of 50 new jobs within four years of doing business in Illinois qualify for the benefit. If they locate their plants in underserved communities, their tax credits can increase.
Secondly, the state’s Illinois Environmental Protection Agency (IEPA) provides rebates to companies that install Level 2 and DC fast chargers. These rebates can cover as much as 80% of the project’s total costs. Locating charging stations in underserved communities qualifies EV charging companies for additional rebates.
Federal Funding Options for EV Charging Stations
Even though the federal government has paused its National Electric Vehicle Infrastructure (NEVI) program to update it to align with the US Department of Transportation’s current priorities, there remains a federal benefit that EV charging companies can take advantage of.
It’s the Alternative Fuel Infrastructure Tax Credit — and it’s available to EV charging stations until at least 2032. It covers charger components and parts, construction and installation labor, as well as the chargers themselves.
Businesses can receive 6% of their depreciable costs up to $100,000 per charger or energy storage device, such as backup batteries on the charging station’s properties. However, if your station meets the US Department of Labor’s “prevailing wage and apprenticeship requirements,” it could qualify for 30% of the depreciable costs up to $100,000 per charger or storage device.
Discover More Funding Opportunities at an EV Charging Summit Event
As EV adoption grows across the United States, more investors and governmental bodies will take notice and get in on the action themselves. At an EV Charging Summit event, you’ll get the latest scoop on funding options for your EV charging business — and so much more.
Discover new technological breakthroughs, the latest developments in fleet electrification, and better ways to market your EV charging businesses. You can also learn more about how to select the ideal site for a new station. Then, at the end of the day, you’ll network with the finest minds in the EV charging industry. There’s no better forum to increase your company’s footprint in the EV charging space. Register for your spot at our next event today!
