In the summer 2021 update, Airbnb added EV chargers to their search. As of February 2022, 78,000 hosts offered EV chargers. Is it worth installing one at your STR?
For 2023, the Inflation Reduction Act brought back the EV charger federal tax credit that expired two years ago. And it extends through 2032. In short, if you install a home EV charging station, the tax credit is 30% of the cost of hardware and installation, up to $1,000.
The cost of installing a 240-volt EV charger at your short-term rental can vary greatly. It depends on several factors, but here’s a breakdown to give you a rough idea.
Base Costs:
- Charger: Level 2 EV chargers, suitable for home charging, typically range from $350 to $750.
- Basic Installation: If your existing electrical panel has a dedicated 240-volt circuit and sufficient capacity, basic installation may only cost $250 to $500. Car and Driver have picked their favorites and update the listings regularly. Wirecutter has also reviewed EV chargers.
Additional Costs:
- New Circuit & Outlet: Installing a new 240-volt circuit and 50-amp outlet can range from $300 to $800.
- Panel Upgrade: If your panel lacks capacity for an additional circuit, an upgrade could cost $1,800 to $2,500.
- Wiring & Labor: Wiring costs vary based on distance and complexity, typically $6 to $8 per foot. Labor rates also vary by region and electrician.
Short-Term Rental Specifics:
- Local regulations: Check your local ordinances for any specific requirements or restrictions for installing EV chargers at short-term rentals.
- Consider a unit with Wi-Fi connectivity. That allows you to monitor charging, receive alerts, and control the unit via an app.
- Since you want to appeal to as many guests as possible, look for a universal EV charger that works with as many autos as possible. Whatever model you select, include a close-up of the charger on your listing to remove any uncertainty.
- Return on Investment: Consider the potential increased appeal and booking rates for your rental due to the EV charger. You can also consider offering charging fees to recoup the installation cost.
- Will you charge: Will you ask renters to pay for the service or will you provide it as an amenity?
Recommendations:
- Get quotes from qualified electricians: Contact several licensed electricians in your area for specific quotes based on your property’s electrical situation.
- Consider a Level 1 charger: If budget is a major concern, a Level 1 charger uses existing 120-volt outlets and charges slower but may be a more affordable option.
- Plan for future demand: If you anticipate a potential high demand for EV charging at your rental, consider installing a high-power charger or multiple chargers.
Quick Calculations:
| Item | Cost |
| Charger | $500 |
| Install | $500 |
| Panel Upgrade | $2333 |
| Total | $3333 |
$3333 cost total minus the $1000 tax credit (we made this easy) is $2333 to recoup. What’s the cost of your time? Factor that in.
Now back-of-the-envelope numbers
- Run an Airbnb search in your area.
- Click filters and note the “Show XXX places.” What’s that numbers?
- Filter for chargers under Filters > Amenities > EV Charger. What’s the number on the “Show XXX places”?
- Divide the EV Charger number by the first number. That’s the percentage with EV chargers.
- Last, check House under filters to see how many of the properties are homes (several apartments will have EV chargers because the complex will provide them)
- If these percentages are around 15% or less, then this could be a real amenity that can get you more rentals.
Of course, the question is how many people searched for EVs in your area. Airbnb doesn’t get the granular but from June to December 2021, Airbnb recorded more than 500,000 searches for electric vehicle charging capabilities.
What you can do is research how many electric vehicles sold in your state last year from the Energy Department and its year-over-year increase. And, how many people are requesting electric rental cars? As of 2023 it’s around 10% and it’s projected that nearly 25% of rental cars will be electric by the end of 2024.
So if 10% of car rentals are electric and that is growing. You now have the percentage of homes in the area that have EV chargers. You know your average nightly. Do you have the numbers to make a decision?
There are no sure things but this gives you data. Other things to consider. Is a panel upgrade or other electrical improvements in your future plans? You know that there are federal incentives. Are there state incentives? Will an EV charger attract guests traveling for work and improve your mid-week and longer rentals?
It’s important to weigh the initial cost of installation against the potential benefits of attracting a growing market of EV owners seeking comfortable charging options. Remember, your specific situation will determine the exact cost, so seeking professional advice and quotes is crucial before making a decision.