Show me the money! How you should be breaking down the costs associated with EV charging

Charging costs vary depending on a range of factors; where you charge (public, home, and private), what type of charger you use, and how you allocate the capital cost of your charger. On top of the cost of charging, a business will want to remain aware of the costs linked to ‘overstay penalties’. These are additional fees associated with staying on a charge point beyond the maximum recommended time. This therefore prevents someone else from charging when your vehicle is fully charged.

Optimising charging expenditure through managing tax, avoiding fraud, looking after overstay payments, compensating drivers for home charging, and ensuring the performance of your assets are all components you will want to consider.  

The most effective way of doing so is to have all your charging data in one format so it is easy to find and get regular updates. This way you will not be surprised by a big bill at the end of the month. A digital dashboard will help you stay on top of your costs so you can manage your business expenses.

Paua Tip: One area that fleet managers should not lose sight of is ‘overstay fees’ when using public charging points. Whilst initially these can be seen as a penalty or an inconvenience, they do have a role.

Consider the basics below. We dive into more detail in our ‘13 Insider Tips To Help You Transition To EVs’ – a guide written specifically for Fleet Managers which you can request for free from HERE. 

The cost of charging an electric vehicle is based on the amount of energy used and the cost of energy. 

• Energy is measured in kWh as outlined earlier. Price is based on p/kWh.  
• Power (kW) is transferred into the battery over a period of time resulting in the energy transferred.

The cost of a charge therefore depends on the amount of energy and its cost. One area that fleet managers should not lose sight of is ‘overstay fees’ when using public charging points. Whilst initially these can be seen as a penalty or an inconvenience, they do have a role: 

• EV chargers are a valuable resource. Incentives are required to keep them open to others.  
• Once you are finished using one, you should move on. And ideally if it is a rapid charger, you should move on before the charge rate slows down (normally 80%).
  

We’ve merely dipped our toes into the overall subject of electric vehicle charging costs. For a deeper dive into the total cost of charging check out our ‘13 Insider Tips To Help You Transition To EVs’ – a guide written specifically for Fleet Managers which you can request for free HERE.