• The meaning of monetising EV charging stations
• Why monetise your charge points?
• What are the benefits?
• How to choose a monetisation method
• Types of monetisation methods
• What are the costs involved?
• How do customers pay for EV charging?
• Business EV charging statistics
• Where to start?

As well as reducing carbon emissions, the other great benefit to installing EV charge points on your business premises is that you can monetise them! Electric vehicle ownage is only increasing and with new fuel-driven cars being banned within the UK by 2030, soon businesses everywhere will be monetising EV charge points. So get ahead of the game and discover all you need to know in our handy guide to monetising EV charging stations. 

 

What do we mean by monetising EV charging stations?

Monetising EV charging stations means making money from the use of the charge points. This is done by charging a fee to EV drivers, whether they be customers or members of the public, to use the charge points on your premises. There are various monetisation models that you can use, so make sure you choose one that works best for your business or organisation. 

 

 

Why monetise your charge points?

Surely this one is simple! Charge points can be extremely profitable and can add an extra channel of income to your business. Not only can you benefit financially from EV drivers using your charge points, but as they wait for their vehicles to charge, they are likely to spend more time at your business. Leading to increased footfall and increased revenue. 

 

What are the benefits? 

Additional channel of income

When you monetise your EV charging stations you create an additional channel of income for your business.

Extremely profitable

EV charge points can be extremely profitable, due to guaranteed demand and a current lack of supply. 

Demand will only increase

The sale of EVs is only going up! With 6.5m households in the UK planning to buy an electric car by 2030, demand for publicly available charge points won’t be going anywhere. 

Increased footfall

With more EV drivers heading towards your business to use your charging stations, the more people that walk through the doors of your business. Plus, whilst waiting for their vehicle to charge, they’ll be spending longer with you!

Improved brand image

Show your customers that you care about the planet and are committed to helping reduce carbon emissions. Be seen as a sustainable leader who’s leading the charge in providing EV charge points for your customers and the public.   

 

 

How to choose an EV charge point monetising method?

It’s important to know that no one size fits all. There are various EV charge point monetisation methods and models out there, so it’s important to understand each one and see how, and if, it will work in line with your business strategy. Models vary depending on the business type, business model and objective, the location, other influencing costs as well as the type of EV driver that is expected to be using the charge points. 

One thing to note is that you should try to be flexible and scalable with your method. It’s a fast-paced industry and things can change, especially with the development of new technologies. 

What types of monetising models are available for EV charging? 

Loss Leader Model

A loss leader model works by providing free EV charging to EV drivers, to attract customers to the business. The business goal is to firstly attract and then retain customers through the use of free EV charging. The EV charging costs are offset by the increased revenue gained from the increased footfall from the existing business.  

A free top-up charge can be a very tempting offer to an EV driver and can be a deciding factor, when choosing which business or establishment to spend their money with. The loss leader model could therefore place you above your competition, in the eyes of the EV driver. 

 

Advantages:

• Attract & retain more EV drivers than those with paid monetisation models.
• Works great with lower kW charge points.
• Creates positive & generous brand image. 

 

Disadvantages:

• Not as suitable for rapid charge points.
• Responsible for covering electricity costs and upkeep of charge points. 

 

Best suited for: 

• Businesses with a customer dwell time of over 45 mins.
• Businesses that make more than £1/h of margin from customer attendance. 
• Restaurants, supermarkets, hotels. 

When considering using this model, it’s important to evaluate if you can attract enough EV drivers and on-site spending to cover the charge point costs. In addition, consider how your customers would feel if you did charge them? Could it deter them from your business, especially if the majority of your customers arrive by car?

 

 

Cost Recovery Model 

A cost recovery model works by setting a charging fee for the EV driver that either covers just:

• The operational cost of your charge points, or
• The operational costs plus an additional margin that covers the charge point equipment and installation costs. This is called total cost recovery. 

These costs are levied out in the form of a usage fee to the EV drivers.

Many EV drivers are accepting of paying a fee to charge their vehicle but will usually judge how costly it is by comparing the fee to their home electricity rates. However, it’s important to monitor the fee and adapt to changes in fuel costs, to keep the price attractive. 

 

Advantages:

• Attract & retain more EV drivers than those with paid monetisation models.
• Allows your charge points to pay for themselves and the electricity used. 
• Could attract more affluent customers.
• More suitable for rapid chargers.

 

Disadvantages:

• Less attractive option for EV drivers than the loss leader model. 

 

Best suited for:

• Businesses with a customer profile that will be happy to pay to use the charge points. 
• Fuel stations, car parks, shopping centres.

With this method it is important to understand your customer and if they are able or would be willing to pay to charge their vehicle. It’s also important to consider how much time they are likely to spend at your business and therefore charge their vehicle. They may be reluctant to pay for a quick top-up, whereas it may be considered a more worthwhile fee if they stayed for a longer period of time, or if it was during a long journey. 

 

 

Profit Making Model

A profit making model is similar to a cost recovery model, in that it covers the costs of the charge points, however, it also generates a profit for the business. Therefore, a higher fee is levied on EV drivers in order to use the charge points. 

 

Advantages:

• Attract & retain some EV driver customers.
• The charge points pay for themselves.
• Generates profit.
• Suitable for rapid chargers.

 

Disadvantages:

• • Least attractive option for EV drivers compared to cheaper or free options. 

 

Best suited for:

• • Businesses whose customers have a limited choice in terms of charging their vehicles.
  • More affluent customer profiles. 

The same considerations apply to this model as the cost recovery model. However, with a higher fee to charge, it’s important to consider if you have the right customer for this model. More often than not, EV drivers will be happy to pay more than the cost of the electricity if there is no alternative option or if they are wanting a fast charge. However, it’s important to acknowledge that although a higher fee will result in increased profits, especially if there is a lack of charge points in the areas, your business’ reputation may be damaged if customers believe you are exploiting them. 

 

 

What are the costs involved in charge point monitoring? 

When deciding upon a monetising strategy for your EV charge points, it’s important to understand all your associated costs. That way, you can fully evaluate which monetisation model is best for your business. 

Equipment & Hardware Costs

The initial cost of your EV charge points and equipment depends on your chosen manufacturer, the features you choose, the number of charge points you want, as well as the power they can deliver. 

Installation Costs 

Your installation costs will vary depending on various factors as well as the professional installation provider. Installers will usually carry out a site survey before providing a quote, as each site is different. Factors that influence the installation costs can include the power required for the charge points, how you want the charge points to be mounted (on the wall or on stands), as well as how the supply cable is fixed en route to the charge point (clipped to a wall or buried underground). 

Electricity Costs

The ongoing electricity costs for your change points will depend on your chosen energy tariff. You can work out the predicted costs by identifying what you pay per kWh on your tariff and multiplying this by the total number of kWh going through a unit. Then multiply this by the total number of charge points.

Management & Maintenance Costs

Despite having the very best charge points installed, things can still go wrong. User misuse and damage can happen, so it’s important to factor in the potential costs that might incur. Most charge point installers will offer a certain level of maintenance cover with engineer call-out fees, as well as an ongoing management and maintenance contract that allows for total EV charge point system management in exchange for a monthly fee.  

 

How do customers pay to use EV charge points?

There are various ways in which EV drivers can pay to use a charge point. Which method you choose will depend on your charge point’s system features and capabilities. Some offer chip and pin options, whilst others use a smart device App or even an RFID card.  

 

Business EV charging statistics

• Currently, there are over 40,000 public EV charge points in the UK, of which 19% are rapid chargers are 56% fast. 

 

 

Where to start?

Monetising EV charge stations can be a big task and sometimes difficult to identify the right solution for your business. It’s therefore recommended to work with a professional EV charge point solutions provider (like us!) who are full of knowledge and experience in implementing EV charge points into all types and scales of businesses and organisations. 

At eFaraday, we make tailored recommendations on the charge point monetisation model that would be best for your business. We’ll work closely with you to understand how you work and what you want to achieve. 

To get started, get in touch! We’ll give you a free quote and will book in our site survey. Call us on 0330 002 1154 today or fill out our online form here.