Switching to electric vehicles (EVs) for your business fleet can lead to significant savings, but understanding the charging costs and timeframes is crucial. Business EV charging plans often involve a combination of subscription charges and time-of-use rates, designed to optimize energy consumption and reduce expenses. Let’s break down how these programs work and how you can estimate your charging time and costs.
Understanding the structure of business EV rates is the first step. These rates typically include a monthly subscription charge based on your anticipated maximum monthly EV charging demand in kilowatts (kW). This subscription model offers flexibility, allowing businesses to adjust their subscription level throughout the billing cycle to match their changing needs.
However, it’s important to monitor your actual energy consumption. Exceeding your subscribed kW level will result in overage fees. These fees are calculated at twice the rate of your per-kW subscription cost for each kW beyond your subscription level. For instance, if your subscription is 60 kW and you use 61 kW, you’ll pay for the 60 kW subscription plus an overage charge for the additional kW at double the standard rate. Careful management of your subscription level is key to cost-effectiveness, and it’s often beneficial to proactively adjust your subscription rather than incurring overage charges.
To help businesses adapt to this system, many providers offer a grace period, typically for the first three billing cycles. During this period, overage fees are waived, allowing you to determine the optimal subscription level for your business without penalty. In some cases, if overage fees are incurred during the final grace period billing cycle, your subscription level might be automatically adjusted upwards to cover your actual usage, and this adjusted level may be locked in for the subsequent billing cycles.
Beyond the subscription charge, the actual cost of charging is determined by time-of-use (TOU) rates. This means the price of electricity varies depending on the time of day. Typically, charging during midday hours is the most economical due to higher availability of renewable energy during these times. Conversely, peak hours usually incur higher rates.
Time-of-use periods are generally consistent throughout the year, without seasonal changes, making it easier to plan your charging schedules. By shifting your EV charging to off-peak and super off-peak hours, businesses can significantly reduce their energy costs. Refer to your specific Business EV Tariff for the precise timeframes and rates applicable in your region to effectively calculate your EV charging time and associated costs. Understanding and leveraging these rate structures is essential for maximizing the economic benefits of transitioning to an electric vehicle fleet.
