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What Business Models Are Available For Commercial EV Charging?

Feb 08, 2022
 What Business Models Are Available For Commercial EV Charging?

Does your business location have a parking lot? The electric vehicle market is growing, so is the population of EV drivers. These people prefer to spend time and do business in the places where they could use electric chargers for their cars. If you wish to attract this expanding and valuable demographic, installing charging stations is a must.

Prior to installing, you have to consider one more thing. How are you going to manage your charging points? There is no universal solution for EV chargers management. Your choice will depend on what you would like to get out of this setup. Let us take a look at five different ways retailers configure their EV charging stations.


Charging By Kilowatt-Hour

Your business may need to fund the energy that your electric chargers consume. Why not make the drivers contribute? The straightforward and quite effective way to offset the cost of operating electric chargers is by introducing a billing structure based on kWh used. 

When the driver is at your location, it is possible to top up the EV at the set price of, for instance, 30c per kWh. It is a simple strategy not only for the driver but also for the site host. Besides, it directly covers your usage costs. However, it is worth noting that the customer will only pay for the energy consumed. Thus, this method doesn’t discourage drivers from camping at EV chargers.


Charging By Time

Charging stations provide the most value when in use. If someone stays in a spot after having their car charged up, they cost money. What if they pay for it?

Designing a billing structure where the drivers pay based on the amount of time their cars use the plug is a great way to encourage people to leave once their electric vehicle is full. Although this plan deters drivers from staying when fully charged, it favours the owners of faster adapters who charge their cars faster. So they may spend less time and money at your place.


Charging By KWh And Time

If it is possible to bill by kWh in your location, but you still want to stop users from taking up EV chargers once they are filled up, there is a solution. Choose a billing structure where the EV driver pays not only for the energy used but also the time spent. This way of charging still favours drivers with fast chargers onboard, and it is not easy to set the perfect rate.


Flat Rate

A standard fee is the simplest method for earning revenue from your stations. You can collect money at the entrance or introduce a pre-paid access card. This billing structure provides complete pricing transparency and does not favour vehicles with fast onboard adapters.

However, the fee doesn’t depend on energy usage, so it is not always fair. What is more, this method doesn’t prevent drivers from camping when fully charged.


Free EV Charging

Such a service is a solution for a site host that is ready to offer convenience without asking for anything in return. Who doesn’t want to get some free stuff? This option is one of the best ways to start attracting EV drivers to your location. Nonetheless, the major disadvantage is the lack of revenue.


When it comes to electric vehicle charging there are multiple business models you could choose from depending on your business objective.

They are free EV charging, flat rate, charging by kilowatt, by time or by a combination of time and kilowatt. When deciding on the most effective model, consider the costs, the type of visiting driver and the business location.

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