Setting a charging rate can be confusing for your location but no worries we are here to help. By leveraging our expertise, you can accurately determine the ideal charging rate for your EV charging infrastructure, maximizing convenience and cost-effectiveness for users.
Typically, we advise exploring a charging rate ranging from $1.50 to $2.50 per hour of charging time for a given location.
How did we arrive at the cost for the location? Let’s illustrate with an example to demonstrate our reasoning. Suppose your utility bill reflects the following pricing:
| per kWh rate | $0.06 |
| Demand Charge, per kW | $12.56 |
| Monthly Energy Consumption (kWh) | 3000 |
| Charger Output per Hour (kW) | 6.67 |
We will be showing you the calculations for two scenarios here: One without demand charges and one with demand charges.
Scenario one (no demand charges)
If your location has no demand charges, your kWh rate will then simply be $0.06/kWh of energy consumed. We can then calculate the cost of having a charger on for an hour by taking the output of the charger per hour and multiplying it by the kWh rate.
6.67kWh x $0.06/kWh = $0.40/hr
This is the cost to run a charger that is putting out full power for an hour. Don’t forget to consider any internet service plan costs as well as any infrastructure maintenance costs.
Scenario two (with demand chargers)
If your location has demand charges, the calculation is different. You may wonder what is demand charges and why I need to be aware of this. Peak demand for EV chargers is like the busiest time of day for your electricity usage. When you use a lot of electricity all at once, especially during peak demand times, it can strain the electrical system. To prevent this strain, utility companies often charge higher rates for electricity during these peak times. This is called “demand charges.” So, if your EV charger draws a lot of power during these peak times, you may end up paying more for electricity. That’s why it’s important to manage your electricity usage and try to avoid using too much power all at once.
Suppose we add 100kW of extra demand to the previous example. You will see an extra line item on your bill for $1256.00, which is charged on top of the kWh consumed. To calculate the extra kWh pricing paid for being in demand, divide the extra demand charges by the monthly energy consumption:
$1256 / 3000kWh = $0.418
Add this to the per kWh rate of $0.06, giving us an effective kWh rate of $0.478/kWh. Now our rate calculation is the same as the above example except with the new effective kWh rate we just calculated.
6.67kWh x 0.478/kWh =$3.19/hr
A special note: A level 2 charging typically puts out 6.67kW of power. This means that if your building is already in demand, every charger that gets utilized and is delivering full power could add 6.67kW to the demand charge. In the above example. This would mean for every charger used and captured by the utility in a demand scenario, you’ll see an increase in the bill of $83! (6.67kWh x $12.56)