Are You Earning EV Carbon Credits? 💰
AmpUp assists clients in earning carbon credits from their EV charging stations
AmpUp is always seeking ways to offer value-added services to our customers. For this reason, we’d like to showcase the importance of carbon credits for EV chargers as they help our clients achieve a quicker return on investment. What are carbon credits? Why are they important? Can station owners redeem them from charging stations? We unpack these questions and more below.
What are EV carbon credits? 🤷♀️
In general, a carbon credit is a credit that offsets one tonne of carbon dioxide, the greenhouse gas that contributes to climate change. Thousands of organizations and businesses, such as airline companies, purchase carbon credits to offset their emissions each year to make up for the harmful gas burned during their operations. Individuals, companies, and municipalities are increasingly earning carbon credits on their own by installing and operating renewable energy generation and/or electric vehicle charging stations.
The most popular carbon credit market is the ‘Low Carbon Fuel Standard’ (LCFS), specific to California. While there are other carbon credit markets in North America, California carbon credits are expected to increase by 66% by 2030!
Why are carbon credits important? 🤔
Carbon credits help the environment. They provide a way to promote renewable energy and fight climate change. Furthermore, carbon credits represent an additional means of generating revenue for EV charging station owners, thus achieving a return on investment (ROI) sooner than anticipated.
For example, a standard Level 2 single-port charger (7.7 kw) could earn a station owner ~$2,000 per year with medium usage of five charging hours per day. A 50kW fast-charger could earn north of $14,000 per year with the same amount of usage.
How does an individual or company earn carbon credits? 💰
Unfortunately, earning carbon credits is not as easy as it sounds. Many EV charging station owners work with carbon credit consultants or third-party brokers who help them navigate the process of validating data and filing for the credits on a quarterly or annual basis. Those interested in purchasing EV charging stations should ask potential vendors if they help redeem carbon credits or if the vendor takes ownership for themselves.