walterbays
Well-known member
There are a lot of interesting dynamics in charging costs, and I wonder how prices will finally settle out.Randy said:Some host businesses will give it away as a promotion or to attract customers, but if their goal is to recover costs, then it will have to be priced higher than $1/hour.
The cost of electricity alone is about $0.46/hour. But for quick chargers or large numbers of L2 chargers, demand charges could easily be a hundred times as much. A few public non-profit organizations I've seen are charging something like $2 to $2.50/hour. But for a Volt that's the equivalent of over $5/gallon gasoline, so they'd likely pass up the Blink station in favor of the Arco station. Free or cheap charging should be very popular with PHEV's as well as with BEV's, and they should be very busy. But at some price point (determined by OPEC) public charging makes little sense for a PHEV and stations above that point should have a dramatic drop off in business.
Where parking is not free (i.e. not subsidized) it's usually higher than $2.50/hour, so it seems likely that charging would often be a complementary amenity with paid parking, and sometimes like parking would be free with validation or with retail purchase.
So the most expensive part of a charging business is the demand charges. It costs a huge amount for the first customer of the month and nothing for all other customers, so high volume is crucial to a business. Number two is probably the parking space, and it costs the same while a car is charging, after it's fully charged and just sitting there, or while the space is ICEd. Number three is the EVSE equipment, and it's depreciated over years, so again volume is key. And in last place is the electricity, which is the one part which seems most reasonable to charge money for, from a driver's perspective.