The Solar ETM™ Charging Station.

The system is known as the ETM™ (Energy Transfer Merchant) – a play on ATM. This solar powered electric vehicle (EV) charging station we like to refer to as a smart grid system.  EV4 LLC designs, finances, manufactures and installs the ETM™ station.

The station is a completely modular, bolted system that covers two parking spaces, 17’ x 17’ and 12’ in height. Its foundation is a concrete slab or an underground vault, depending upon the site.  The station is standard equipped with one Level 2 AC charging units and one DC fast charger
with both CHAdeMO and SAE-CCS Combo connectors.

EV4 LLC (EV4) arranges for owners/investors of the ETM™ stations the site location, design, manufacturing and installation. As a “turn-key” the owner can contract with related company EV2Charge LLC (EV2) for the operation, maintenance and administration of the ETM™ station.

The business model is explained below and how the business is deployed in steps for the owner/investor of the ETM™ station.

Step 1 – Location & Ground Lease Agreement.

The first step is finding attractive, strategic locations to install an ETM™ station. Location, location, location. It is very important to ensure that the location is likely to be visited by EV’s for AC and/or DC fast charging with sufficient and increasing frequency over the next 20 years.

EV4 will arrange for the ground lease agreement with the Host (property/land owner) of two parking spaces to install the charging station. The installation will be free of any cost to the Host.

The Host (property owner) will contract for a term of 20 years, and charge a ground lease rate of $1 dollar per year. The Host will share in 5% of the net charging revenue. In case the property owner (Host) is leasing the station for his own use he will be charged by the owner/investor of the station an agreed daily rate ($35-$50/day) for unlimited 24/7 free charging in the initial five (5) years of operation.

Step 2 – The Application of Tax Credits for the Owner/Investor.

The owner / investor of an ETM™ station will need to have a minimum taxable income of $160,000 in order to take full benefit of the available State and Federal tax credits and bonus depreciation.

The owner who is residing in Oregon will only have an “out-of-pocket” expense of approximately $40,000 after application of the tax credits and bonus depreciation. The owner/investor who does not reside in Oregon will have an “out-of-pocket” expense of $40,000 – $60,000 (depending the State where residing) using an Oregonian pass-thru partner for the tax
credits.

Please note that the ETM™ station can be delivered and installed in various configurations. The main configurations are three (3) versions.

Version 1, the fully integrated station which has all the functionalities: AC & DC fast charging, solar canopy, battery system and LED display for advertising.
Version 2, ETM™ station without the solar canopy but with AC & DC fast charger and the battery system. Version 3, the ETM™ station with solar canopy and LED display for advertising but without DC fast charger and battery system.
Version 3, the ETM™ station has solely the ability of AC Level 2 charging (SAE J1772), no DC fast charging.

Step 3 – Return on Investment (ROI) for Owner/Investor.

The owner/investor with an “out-of-pocket” cost of some $40,000 will require a reasonable return on his investment. In our projections the owner will have his investment paid back in five (5) years including a reasonable interest rate. The ETM™ station has no major maintenance and
a technical lifetime guaranteed for 20 years.

It is expected that after three years the frequency of visiting EV’s for AC & DC fast charging has increased substantially, generating a healthy cash flow from charging.

In the first years, due to the absence of sufficient EV’s the investment cannot be supported by income from charging only. Therefore EV2Charge is arranging additional income from other sources such as advertising.

The income from selling advertisement on a LED display on the canopy of the station will be additional income, further enhancing the return on investment. Based on conservative income projections of the station, the return on investment (ROI) for the owner/investor will be more than 20%.

Various studies and projections (Accenture, Boston Group and Deutsche Bank) are estimating that in the next 15 years the US car park will consist of 10% electric cars. The States of California, Washington and Oregon have mandated that this year 2016 of all new cars sold, 10% should be electric cars. Furthermore eight States including CA, WA and OR have set the goal of
3% zero emission cars (battery driven only) by the year 2025.