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Procurement and incentives

The catch in a free EV charger installation

The catch is site control. A provider pays for the equipment and the installation and recovers it out of energy margin over a term of years, and during that term they typically set the price drivers pay, keep most or all of the revenue, and hold exclusive rights over the stalls — in some drafts over the whole property. That is a real trade and for some properties it is the right one. Whether it is right for yours comes down to six clauses: the term, the scope of the exclusivity, the revenue split and how it is calculated, who sets pricing, what happens at the end, and who restores the pavement.

Updated 2026-08-20

What free actually means here

It means the capital comes from someone else's balance sheet and is repaid out of the energy sold at your property.

The six clauses, one at a time

Read these before the revenue split, because five of the six change what the split is worth.

What each clause usually says and what to ask for
ClauseWhat drafts commonly sayWhat to ask forWhy it matters
TermA fixed multi-year term, sometimes with automatic renewalA term you can live with, renewal by mutual agreement rather than automatic, and a stated termination costIt is the price of the capital, and it is usually the most negotiable term in the document
Exclusivity scopeExclusive right to provide EV charging at the propertyExclusivity limited to the installed stalls, not the parcelProperty-wide exclusivity blocks a tenant's own charger, a fleet tenant and any second network
Revenue splitA percentage, with the base left unstated or defined in the provider's favourThe percentage and the exact base, defined line by lineA share of net after costs the provider controls is a different deal from a share of gross
Pricing authorityThe provider sets the price drivers pay, at their discretionA cap, a notice requirement before changes, or joint approvalPricing sets your drivers' experience and your tenants' complaints, not the provider's
End of termThe provider may remove the equipment, may leave it, or may require purchaseA stated outcome for each scenario, with who pays namedAmbiguity here becomes a dispute exactly when you have least leverage
Removal and restorationSilent, or an obligation to remove the equipment onlyRemoval plus surface restoration to a defined standard, at their costPedestal bases, bollard footings and trench scars stay in your pavement otherwise
Provenance: A structural reading of how these agreements are typically built. It is not legal advice and it does not describe any particular provider's contract. Your own draft governs, and it should be reviewed by counsel who reads property agreements.

Exclusivity is the clause worth fighting over

There is a large practical difference between exclusivity over the stalls the provider installs and exclusivity over EV charging at the property, and drafts often use language that reads like the first and means the second.

The revenue split, and the word that decides it

The percentage matters less than what it is a percentage of. A split of gross revenue and a split of net revenue can differ by a third or more on the same site.

Worked example — illustrative inputs, not market data
LineExampleWhat to nail down in the contract
Energy delivered in a month1,000 kWhWhose meter reading governs, and can you see it
Price to the driver$0.45 / kWhWho sets it, and can they change it without notice
Gross revenue$450.00Whether idle fees, session fees and parking charges are inside or outside
Delivered energy cost deducted$0.14 / kWh, or $140.00Whether demand charges are also deducted, and how they are allocated
Payment processing deducted at 3%$13.50Whether the rate is disclosed or simply asserted
Net revenue$296.50The exact list of permitted deductions, closed rather than open-ended
Host share at 10% of gross$45.00This is the version you want
Host share at 10% of net$29.65Same percentage, 34 percent less money
Provenance: Worked arithmetic to show the mechanism. Every input is a placeholder chosen for the demonstration and none of them is a claim about your site, about typical pricing or about typical energy cost. Substitute your own rate schedule and the provider's own numbers.

Who sets the price drivers pay

Under most host agreements, the provider does, and that decision reaches your tenants and your customers rather than theirs.

End of term, which is where the surprises live

Three outcomes are possible and the draft should name which one applies: the provider removes the equipment, the equipment stays and becomes yours, or you buy it.

The incentive interaction almost nobody asks about

Eligibility for utility programs commonly follows the customer of record on the meter, which under a host agreement is frequently the provider rather than you.

When the free model is the right answer

For plenty of properties it genuinely is, and dismissing it is as lazy as signing it unread.

Is free EV charger installation a scam?

No, it is a financing structure. The provider funds equipment and installation and recovers it out of energy margin over a term of years, holding pricing authority and exclusivity in the meantime. That is a legitimate trade. What makes a specific deal bad is not the model but the terms: property-wide exclusivity, an automatic renewal, an open-ended deduction list on the revenue split, or silence on restoration.

What is a typical revenue split for a host site?

We do not publish a typical figure, because the percentage is meaningless without the base it applies to and the two are always negotiated together. What is worth knowing is the mechanism: a share of gross and a share of net at the same percentage can differ by a third, and the deduction list is what makes the difference. Ask for the base defined line by line before you discuss the number.

Can we get out of a host agreement early?

Only on the agreement's own terms, which is why the termination clause deserves reading before the revenue clause. Expect either a fixed termination fee or a buyout of the provider's unrecovered investment. Ask for the formula in the draft and for a worked example at a stated year, so the number is knowable rather than discoverable.

Who owns the chargers at the end of the term?

Whatever the agreement says, and many drafts leave it ambiguous. The three possibilities are removal, transfer to you, and purchase by you. Each needs a named payer and, in the removal case, a defined restoration standard. Take a photographic baseline of the stalls before installation, because it settles the restoration argument in one step.

Does the provider get the utility rebate?

Frequently, because eligibility usually follows the customer of record on the meter and that is often the provider. Ask who applies, who receives the money and how it flows into the split. Also ask what operating obligations the program attaches, because those normally attach to the site and can outlast the agreement that brought them.

Is there a federal tax credit that changes this math?

Not any more. Section 30C terminated for property placed in service after June 30, 2026 and there is no federal replacement, so the federal contribution to any comparison you are shown is zero. Decks built before mid-2026 routinely net a thirty percent credit against the owner-funded column, which understates the free option by comparison. Check the date on any model you are handed.


Price what you are being offered

A free installation is only readable next to what the same installation would cost you. Tell us the port count, the service size and the distance from the panel, and the estimate returns a modelled installed range you can hold the agreement against.