Charging for Charges, the Economics of Charging EVs

Sunday, July 11, 2010

To charge EVs, or not to charge...that is the question for many governments and businesses today.

To answer that question requires a good understanding of the business case of charging cars.  As I see it, the Benefits and Cost of charging EVs comes down to these key variables...

  • Financial Benefits: Revenue from charging, Tax Credits, Rebates
  • Marketing Benefits: New customers, Green marketing, Employee Satisfaction
  • Environmental Benefits: GHG Reduction, Oil use reduction, Help with LEED Points
  • Capital Expenses: Chargers, Installation
  • O&M Expenses: Energy, Dedication of Parking Space, Maintenance, Insurance (Vandalism)
For this article, I'll focus on the 2nd most popular question customers ask me:

How much can you make from charging cars? 
This depends on a few key variables, like...
  • How will you charge for X minutes of power?  
  • How many charging stations do you plan to deploy?
  • How often will people use them?
  • What are the transaction rates associated with an eCommerce transaction? 
  • How much does it cost for electricity?
  • Are there any subscription charges per charging station?
  • How fast do you plan to charge?  Level 1 or Level 2 - You can find out how many miles an EV can go on an hour of charge here.

Charge Calculator
To make calculating all these variables simple, I created the spreadsheet below.  You can press the "Click to Edit" and enter your own assumptions in the YELLOW CELLS.  As you will soon see, you can earn some good income from charging vehicles, once the EV market matures and you have a good location.

BTW, the number one question I'm asked is: How much will it cost?...which I'll cover in future articles.