Is a charger profitable?

It depends on utilisation: fixed costs are the same whether ten or a hundred cars come, so every extra session lowers the cost of every kWh.

Explained in

Business models · Stop 07Why does utilisation decide the business case?Fixed costs spread over the kWh sold: the cost per kWh of one charger at different utilisation, computed, and what it means for prices and investment.

The fixed costs are the same whether ten cars come or a hundred. At 5% utilisation they spread over about 65,700 kWh a year, at 15% over three times as much. Every extra session lowers the cost of every kWh. That is why operators watch utilisation more closely than any other number, and why prices fall where chargers are busy.

From “Fixed costs, spread thin or thick”, stop 07

Terms

  1. UtilisationHow intensively a charger is used, for example in sessions or energy per day.
  1. Why is public charging more expensive than home charging?A public charger adds hardware, a grid connection, the site, operation and payment. The IEA reports public fast charging prices up to 240% above residential tariffs.
  2. How do charging companies make money?Operators earn from energy sold ad hoc and through roaming, plus time fees and flexibility; providers from the difference between their prices and operators' tariffs, or subscriptions.