EV Charging Stations

ProHub Comment

This case requires candidates to build a financial model calculating daily/annual gross profits and operating costs to determine payback period. The key is structuring the approach logically (daily profit per charger → annual profit per hotel → total investment divided by annual operating profit), clarifying missing data points proactively, and executing calculations accurately. Advanced candidates can contextualize the answer by discussing conservative utilization assumptions, economies of scale, and competitive necessity.

Estimated Time 15 minutes
Difficulty Hard
Source PeterK
50 / 100
A U.S. hotel chain would like to install fast charging stations to its 100 hotels to attract more customers. The availability of charging stations is one of the key considerations for travelers when choosing their hotels. What would the payback period be for this potential investment?

Clarifying Information

  1. Exhibit 1. Solution Provider Model
  2. Exhibit 2. Economics of Fast Charging Units, 2023
  3. The client plans to install one fast charging unit per hotel
  4. Projected price is $0.45/kWh
  5. Assume 360 days per year
  6. Assume no public subsidies and no additional revenue (e.g. ads)