EV charging cost refers to how much a driver will pay to charge an electric vehicle. While most EV owners charge at home, access to public charging points remains key to supporting widespread adoption. For public infrastructure deployment to keep up with demand, charge point operators (CPOs), fuel retailers, power utilities, and other businesses must consider their own costs—setup, electricity, equipment, and more—to determine the right pricing that will cover expenses while attracting drivers and turning a profit.
What is the cost of charging an EV?
The cost to charge an EV at home compared to on the go at commercial or public EV charging stations is very different. The cost of home charging largely depends on electricity rates, which can vary widely by region and time of day. Drivers can typically calculate EV charging cost using their electric bill, which includes the price per kilowatt-hour (kWh) at various times of day. Drivers should track—likely through their EV app—the time of day at which they charge, which is often overnight when rates are lower. They can then use these inputs to calculate their home EV charging costs.
In the U.S., homeowners pay an average of 17 cents per kWh of electricity. Assuming the average electric car gets three to four miles per kWh, an owner who drives 1,000 miles in a month will consume approximately 333 kWh, and therefore, spend about $56.61 in monthly EV charging costs.
Drivers can expect to pay more for the convenience of fueling at a public charging station. Again, looking at the U.S., drivers may pay about 40 cents per kWh. If the same EV owner only charged at commercial or public EV charging stations throughout the month, they would pay $133—more than double the cost of charging at home. Drivers who have chargers at home will use a mix of both home and public charging. While it comes at a premium, the availability of public charging stations is critical since many drivers don’t have the luxury of charging at home.
What should charge point operators consider when setting EV charging costs?
Businesses can help expand commercial and public charging infrastructure while reaping benefits. Still, charge point operators (CPOs)—and any other industry vertical that offers EV charging such as a power utility, a fuel retailer, an automaker, a retail store, a hotel, an office building, or others—should carefully evaluate EV charging station cost to plan pricing schemes that cover expenses and optimize revenue.
Electricity costs
Depending on your business model (owner/operator or partnering with a third party), hosting EV charging on your property can involve a number of expenses, including:
- Equipment
- Installation
- Utility upgrades
- Network subscription fees
- Maintenance
- Electricity
As with home charging, electricity usage is a major factor in EV charging costs and can significantly impact profitability and operating budget for charging stations. Utilities may charge more during peak-demand hours during the day and less when demand diminishes in the late evening hours. Charging during those peak times can drastically increase the cost to charge EVs. Moreover, you’d also have to consider demand charges—utility fees based on where your electricity usage peaks during the course of the month. For example, if you’re offering fast DC chargers, which use more electricity than slower AC chargers, your demand charges are likely to be higher. Furthermore, your existing electrical service may not have the capacity to support such high-powered chargers. Upgrading electrical infrastructure can be costly in itself, not to mention paying more on your monthly utility bill.
Smart energy management can help optimize energy consumption and avoid costly infrastructure upgrades to reduce EV charging network total cost of ownership. Basically, a centralized, cloud-based management platform uses advanced algorithms to make intelligent decisions on how to distribute available energy based on variable demand. At the same time, the system balances that demand with grid capacity and changing supplies of any onsite renewable energy, along with energy costs, driver needs, and more. In this way, smart energy management makes sure the right amount of energy gets to the correct power consumer at the right time and at the lowest cost.
Pricing plans and billing
Understanding your EV charging costs will help inform your pricing plan for drivers. Some examples of pricing plans include:
| EV Pricing Plans | |
| Free charging | Offer complimentary charging in hopes of encouraging longer business dwell time and sales, or attracting employees to your company |
| Pay-per-use | The user is charged per kWh, hour/minute, or session |
| Time-based | Charging less during off-peak hours to match utility time-of-use pricing for efficient grid use |
| Membership | Users can sign up for subscription plans and pay a flat monthly rate |
Whatever plan(s) you choose, it’s imperative to support different payment gateways so you can accept multiple credit cards and alternative payment methods. A comprehensive and flexible EV billing engine that can accommodate personalized billing plans is also essential for a seamless EV charging experience as well as optimized monetization and ROI.
How does Driivz reduce EV charging cost?
Driivz EV charging management software can reduce EV charging cost through its billing and smart energy management capabilities.
Driivz’ smart energy management for EV charging optimizes how all energy sources at a site are used to accommodate EV charging while considering unmanaged loads and the varying costs of energy from the grid. Reducing the total energy allocated for EV charging prevents spikes in consumption and avoids costly demand charges. Costs are reduced by lowering utility bills through peak shaving, mitigating coincident peak demand, and saving CapEx by avoiding costly grid upgrades.
At the same time, our extremely flexible billing solution has been designed specifically for the EV charging industry. Our comprehensive engine addresses every aspect of your operations, including support for flexible tariff management, various business models, pricing plans, multiple currencies, and invoicing. With a solution built for any business model, Driivz enables accurate, seamless payment processing as you grow and diversify your business.
