Understanding EV Charger Pricing Components

Understanding EV Charger Pricing Components

When setting up public EV charging stations, it's essential to understand and select the right pricing strategy. Future Energy’s platform supports flexible tariff structures to help partners balance revenue goals, infrastructure utilization, and customer satisfaction. Below are the major components of EV Charger pricing:

Volumetric Pricing (per kWh)

This pricing component bills users based on the number of kilowatt-hours (kWh) delivered during a charging session. It directly reflects the amount of energy transferred to the vehicle.

Use Case Examples:

  • A DC fast charger might charge $0.50/kWh to cover energy costs and demand charges.

  • A Level 2 AC charger at a hotel may offer $0.20/kWh for overnight guests.

Advantages:

  • Transparent cost structure for users.

  • Enables pricing alignment with utility costs.

Considerations:

  • Per kWh pricing is restricted in some U.S. states to regulated utilities. Always verify local regulations.

  • Revenue may vary depending on vehicle battery state and charger power level.

  • Alone, this component does not incentivize users to vacate the charger promptly after charging completes, potentially impacting turnover.


Duration Based Pricing (per time interval)

Duration pricing bills users based on the amount of time their vehicle is connected to the charger, regardless of energy delivered.


Use Case Examples:

  • An urban parking garage may set $0.05 per minute during peak hours.

  • A hotel may charge a flat fee for a charging session, regardless of energy (kWh) delivered.

Advantages:

  • Helps manage charger occupancy and turnover.

  • Easy for users to understand and calculate session costs.

  • Useful for low-power chargers where session times are long relative to energy delivered.

Considerations:

  • May penalize vehicles with slower charging capabilities.

  • Does not reflect actual energy consumption, which may reduce perceived value for users.

  • Encourages timely departure, supporting improved turnover.


Idle Fees (per minute)

 Idle fees apply after the vehicle is charged, but remains plugged in, occupying the charger.


Use Case Examples:

  • $0.10 per minute idle fee begins 5 minutes after charge completion at a busy retail location.

  • A DCFC station along a major highway charges $1 per minute when a vehicle reaches 80% State of Charge, improving turnover so more drivers are able to complete their journeys in a timely fashion.

Advantages:

  • Encourages users to move vehicles promptly after charging.

  • Improves station availability in high-demand areas.

  • Directly supports vehicle turnover post-session.

Considerations:

  • Requires accurate detection of charge completion and clear user communication.

  • Users must be informed of idle fee triggers via app or charger display.


Blended Pricing Strategies

Future Energy partners often combine these pricing components to create custom pricing structures:

  • Per kWh + Idle Fees: Common for DC fast chargers where high turnover is desired.

  • Per Hour + Idle Fees: Common for Level 2 chargers in busy locations; for example, $0.50 per hour, plus a $0.10/min idle fee beginning 10 minutes after session completion.

These pricing rules can be configured per EVSE port or connector within the Future Energy dashboard under the "Tariffs" section.


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