Commercial AC vs. DC Charging: Which One Does Your Business Need?

According to the International Energy Agency (IEA), the global stock of EVs is projected to reach 145 million by 2030, highlighting the need for businesses to invest in the right charging infrastructure (IEA Global EV Outlook).

As electric vehicles (EVs) continue gaining traction, businesses increasingly invest in EV charging infrastructure. Choosing between Commercial AC and DC fast charging is one of the most crucial decisions when setting up a commercial charging station. Each has its benefits, costs, and ideal use cases. But which one is right for your business? Let’s explore the differences, advantages, and factors to consider when making this critical decision.

Understanding AC and DC Charging

Choosing the right type of charging infrastructure is essential for businesses looking to provide reliable EV charging services while optimizing costs and efficiency. Understanding the fundamental differences between AC and DC charging will help make informed investment decisions.

What is Commercial AC Charging?

Commercial AC charging provides alternating current (AC) to the EV, which the vehicle’s onboard charger converts into direct current (DC). These chargers typically range from 7kW to 22kW, making them suitable for locations where vehicles remain parked for extended periods.

A notable example is the Westfield Valley Fair shopping center in Santa Clara, California, where Electrify America has installed 14 ultra-fast chargers ranging from 150 to 350 kW. This initiative aligns with broader U.S. efforts, such as the Department of Energy’s Workplace Charging Challenge (DOE Workplace Charging). The installation has successfully attracted more EV-driving customers, increasing their dwell time in stores and boosting overall revenue (Charged EVs).

Best suited for:

• Workplaces and office complexes
• Shopping malls and retail centers
• Hotels and hospitality businesses
• Public parking lots

What is DC Fast Charging?

Unlike Commercial AC chargers, DC fast chargers convert AC power to DC before delivering it directly to the EV’s battery, bypassing the onboard charger. This allows for much faster charging, with power outputs ranging from 50kW to 350kW.

Best suited for:

• Highway rest stops and gas stations
• Fleet depots and logistics hubs
• Rideshare and taxi services
• EV charging networks with high turnover rates

Key Differences Between Commercial AC and DC Charging

Factors to Consider for Your Business

1. Charging Needs

• Do your customers or employees need a quick charge, or will they park for several hours?
• Will you cater to EV fleets that require rapid turnaround times?

2. Budget and Investment

• Commercial AC chargers are cost-effective and require lower upfront investment.
• DC fast chargers demand significant capital and electrical upgrades but cater to high-demand users.

3. Power Availability

• Does your facility have sufficient electrical capacity to support high-power DC fast chargers?
• Commercial AC chargers work well with existing power infrastructure, making installation easier.

4. User Experience and Expectations

• Retail locations, hotels, and office buildings benefit from Commercial AC chargers as customers stay for hours.
• Businesses with a high turnover of EV users should consider DC fast charging.

5. Future Scalability

• Will your business expand its EV charging network in the future?
•  A mix of Commercial AC and DC charging could be the best long-term strategy.

When to Choose AC vs. DC for Your Business

Choose Commercial AC If…

• Your customers or employees will park for several hours.
• You want a cost-effective and scalable charging solution.
• Your business lacks the high-power infrastructure needed for DC fast charging.
• You are in retail, hospitality, or workplace sectors.

Choose DC Fast Charging If…

• You serve high-traffic areas with short dwell times.
• Your business relies on fast turnaround for EVs, such as fleets or taxis.
• You have the budget and power capacity for a high-powered charging network.
• Your location caters to long-distance travelers or delivery vehicles.

Hybrid Approach: Combining Commercial AC and DC Charging

Governments worldwide offer various incentives and rebates to encourage businesses to invest in EV charging infrastructure. Programs such as the U.S. Federal Alternative Fuel Infrastructure Tax Credit (AFDC), state-level rebates, and utility-sponsored incentives can significantly reduce installation costs. For example, in California, the California Electric Vehicle Infrastructure Project provides substantial funding for businesses installing both Commercial AC and DC fast chargers (CALeVIP). Researching and leveraging these programs can make integrating a mix of charging solutions more financially viable while supporting sustainability goals.

Many businesses benefit from a mixed charging infrastructure:

• Install commercial AC chargers for employees and customers and overnight charging.
• Use DC fast chargers in high-traffic areas for quick top-ups.
• Strategically balance cost-effectiveness with user demand to maximize ROI.

This hybrid approach ensures that businesses can serve a broad range of EV drivers while optimizing their investment in charging infrastructure.

Making the Right Choice for Your Business

The decision between Commercial AC and DC fast charging ultimately depends on your business needs, budget, and long-term strategy. Commercial AC chargers are the ideal solution for cost-conscious businesses that cater to long-stay customers, while DC fast charging is perfect for high-turnover locations.

The decision between Commercial AC and DC fast charging ultimately depends on your business needs, budget, and long-term strategy. Commercial AC chargers are cost-effective and ideal for long-stay customers, while DC fast charging is best suited for high-turnover locations.

If you’re considering installing EV charging stations, evaluating your site’s energy capacity, expected usage, and scalability is crucial. Need expert guidance? Contact us today to explore the best Commercial AC charging solutions for your business, or check out our latest product recommendations tailored to your needs.

As the EV market grows, businesses investing in Commercial AC or DC fast charging will gain a competitive advantage. What’s your strategy for EV charging in 2025 and beyond? Let’s start the conversation!

Last Updated on February 15, 2025 by tayniu