In the last 10 years, annual electric vehicle (EV) sales in the US have increased by nearly 1,100%. While approximately 115,000 new EVs were sold in US markets in 2015, calendar year 2025 sales were substantially larger—nearly 1.3 million new EVs were sold in US markets. Despite strong sales numbers, the state of the EV industry in the US at the conclusion of 2025 could best be described as one of confusion. As sales numbers increased year over year, changes in various federal policy initiatives signaled potential trouble ahead for the EV market. 2025 concluded with a shifting tide in public perception about the state of the US EV market as some media narratives forecast a crash of the industry.
Such forecasts may be premature. Data and policy actions point to a growing industry—albeit at a slower pace than in the prior three years. In addition, the US Department of Transportation proposed new guidance to implement funding distributions under National Electric Vehicle Infrastructure (NEVI) which reopen federal funding opportunities for entities to develop and monetize public charging.
Given these developments, the adequacy of public charging infrastructure is likely to remain a key issue that directly impacts the growth trajectory of the EV industry. Simply put, adequate and commercially successful public charging infrastructure can alleviate consumer range anxiety while inadequate infrastructure can aggravate it. This is key because 2026 study results already show that 47% of US consumers identify range anxiety as their main hesitation in purchasing a new EV.
A key question thus emerges: what are the primary issues in 2026 that impact successful commercial charging station development and operation in the US? Whether it be site hosts, charge point operators (CPOs), electric utilities, or consumers, all market participants are directly impacted by the extent to which charging station development is commercially successful and widespread in scope. As the industry throttles forward into 2026, market participants should consider the following paramount issues.
Host Site Options and Selection for Installation
The threshold issue that any developer, charging network financier, CPO, or site host must consider is where to site a network of public EV chargers. Locations that are easily accessible to consumers and offer reasons for the consumer to choose that location (other than charging availability) are optimal fits for an initial evaluation.
However, EV charging site selection poses additional considerations that must be evaluated after initial location options are identified, including questions surrounding: (1) grid capacity and parking lot space adequacy; (2) proximity of competing networks; and (3) availability of any regional initiatives that promote EV charging station development.
Distribution Grid Infrastructure Requirements and Costs
While hardware and charging station costs are predictable well in advance of identifying potential sites, grid upgrade costs are not as easily identifiable. In some instances, the costs can be significant. Potential grid upgrade requirements will turn on the location of a potential station network, the number of chargers and charging ports contemplated at the station, projected demand, availability of managed charging, and existing load on the local distribution network. Areas where the distribution grid is fully utilized could require significant upgrades while older or smaller potential sites could require transformer upgrades, new utility connections, and trenching regardless of grid utilization.
It is important that project participants understand up front that potential grid upgrade and interconnection costs are going to be project-dependent and not certain in advance. Developers and site hosts should consider the potential for a range of grid and interconnection costs and potential range of scenarios related to cost responsibility (also bearing in mind that some regions may have public funding opportunities to cover certain costs). For these reason, close coordination and communication with the local distribution utility at the initial stages of a potential project is essential in order to minimize any cost “surprises” that could threaten commercial success of a project.
Permitting and Timeline Impact
All parties to a potential public charging development (developers, financiers, site hosts, and CPOs) should also carefully consider the permitting and zoning implications and requirements of a proposed project. As a corollary, those parties should also consider the impact that the permitting and zoning issues will have on the project’s timeline from development to commercial operation.
The implications posed by permitting and zoning approvals are highly project-specific and turn on the requirements of both the state and local municipalities where a project is proposed. While some projects could secure applicable permits and zoning approvals in as little as a few weeks, other projects that involve environmental or zoning complexities could take multiple months.
For its part, the US Department of Energy has encouraged state and local authorities to examine permitting processes and identify barriers for EV charging development, and some jurisdictions, such as California, New York, and New Jersey, have issued streamlining requirements and best practices intended to expedite permitting. However, these states are clearly a minority, and careful consideration must be paid to the applicable requirements and timeline implications in each state and local municipality in which a project will be sited.
Monetizing Charging Stations
Ideal site selection, efficient permitting processes, and close utility coordination can set a commercial charging venture up for success. However, success throughout the life of venture will understandably turn on the extent to which the charging station owner or site host can monetize operations.
Although several revenue streams exist, a direct revenue opportunity for CPOs and site hosts is through fees assessed for usage of a charging station; a predominant opportunity arises through the CPO or site host’s sale of energy to a charging customer. The owner/operator may assess a kWh fee for energy that the consumer draws from the charging station.
In that instance, successful monetization will turn on efficient arbitrage between the per KWh fee assessed to the consumer and the utility rate design mechanism applicable to the CPO or site host (i.e. the utility customer). In short, the rate a CPO or site host assesses to the charging customer should be equal to or higher than the rate assessed by the utility to the CPO or site host in order for the venture to be profitable. For that reason, developers should carefully consider the applicable rate design that will apply to the charging infrastructure. Rate design mechanisms vary across jurisdictions and utilities. Generally, potential mechanisms may include any one or the combination of the following:
- Time-of-use rates whereby the price for energy charged by the utility to the CPO or site host varies based on the time of day or season, with lower fees assessed during off-peak hours and higher-fees assessed during peak load periods.
- Volumetric rates whereby charges are based on the energy consumed irrespective of time-of-day or season.
- Demand charges whereby fees are assessed by the utility based on the highest power demand over a specified period of time; periods where high bursts of energy demand occur can trigger substantial costs for the CPO or site host.
Each of these mechanisms present advantages and disadvantages and their application should be considered in light of projected customer usage of the infrastructure. In addition, developers and site hosts should consider potential changes to utility rate design mechanisms that may occur in the near or longer-term (during operation of the infrastructure) in order to contemplate the economic impact of those utility fees. The environment surrounding this point is currently evolving so developers and site hosts should make sure to assess potential actions of state legislators or public utility commissions that might facilitate revisions to utility rate designs applicable to public charging infrastructure. Examples may include policy proposals to develop EV-specific rate designs, temporary or permanent revisions to the application of demand charges, or the imposition of large load tariffs. Although the current climate surrounding large load tariffs is typically discussed in the context of data center interconnections, contemplated size thresholds surrounding the characterization of “large load” could potentially encompass charging station networks in some areas.
Contractual Relationships with Partners
If the analysis suggests that a potential project can be economically profitable to operate based on the above, attention should then turn to ensuring that the rights and responsibilities of potential parties are adequately and properly contractually documented. In some instances, the developer, owner, and CPO of a charging station is also the owner or lessee of the real estate on which the station will be sited. However, these instances are the minority. Instead, the majority of installations involve a developer or CPO that installs and operates the station and a site host that either owns or leases the real estate on which the station is sited. This paradigm raises the need to adequately document the contractual arrangement.
In its simplest iteration, a site host agreement documents the rights of a CPO to access the real estate parcel upon which a public charging station operates. And, while some stations are currently operating in US markets subject to a contract that serves only that function, those contracts leave all parties exposed with respect to a number of issues that are germane to the successful operation of commercial charging infrastructure. A myriad of issues are likely (and do) arise between CPOs and site hosts as early as the groundbreaking of a charging station development and during the course of station operations. Issues may include, but are not limited to the following:
- Whether real estate rights are provided to the CPO through a lease or a license
- The applicable fee structure between a CPO and a site host for real estate access rights (i.e. a stated fee, a percentage of energy sales, or an alternative mechanism)
- Where and how energy will be metered between vis-à-vis the utility, the charging station, and the site host
- Responsibilities for station maintenance and notification surrounding outages
- Uptime obligations
- Implications and/or impact of temporary or permanent closure of the site host
- Information or data sharing relating to charging customers
- Lighting and signage obligations at and adjacent to the charging station
In a number of instances, properly documented rights and responsibilities can mitigate potential disagreement or dispute between CPOs and site hosts during station operation. In turn, proper documentation can help facilitate the commercially successful operation to the benefit of all involved.
Conclusion
While the revocation of certain policy incentives may slow the rate at which EV adoption in US markets grows, the industry unquestionably continues to grow. The extent to which consumers are willing to adopt EVs will turn in large part on the adequacy and availability of a robust network of publicly available EV charging stations. Development of publicly available charging stations has increased somewhat in prior years, but buildout remains inadequate to satisfy projected demand.
For developers, CPOs, and potential site hosts, opportunities exist to facilitate closing the gap. Those opportunities will only be as successful as the careful planning and consideration that industry participants give to successful charging installations and operations. Although not exhaustive, the issues identified above are key in pursuing commercially successful charging stations; in fact, they are key in charging the EV industry forward in the United States.