Charging for electric car charging - how to choose the right payment model

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When it comes to how to charge for the service electric car charging, there are a few things that are good to keep in mind. Should you only charge for the electricity consumed or can the price include an installment payment on the investment? Isn't it easier to get a fixed stencil? But how do you deal with rising electricity prices?

All these questions we go over in this article. And then we suggest two different payment models that you can use. Regardless of how you choose to charge, there are really good technical solutions that make it easy for you to offer electric car charging to your parking customers in a user-friendly way.

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Five things to consider when charging for electric car charging

1: Smart Technology Enables Smarter Debit

When electric car charging was completely new, it was common to use a flat flat charge for charging, which included power. This is because there were not enough good technical solutions for variable current charging. Now there are chargers that can be connected to smart systems, allowing for variable power charging.

2: Secure cost recovery in the subscription fee

In addition to the electricity charge, you can advantageously charge a subscription fee. This will cover your costs for installation of equipment, ongoing operation and maintenance, depreciation of your investment and a reasonable margin.

3: Minimize Hassle to Maximize Customer Satisfaction

Make sure to use a system that collects everything about parking and electric car charging in the same place. Then your customer just needs to park, plug in the charger and press “start” on the phone, and charging and charging will take care of itself.

4: Power affects the cost of charging

The investment cost of normal charging is significantly lower than that of fast charging. In addition, normal chargers require less of the total power available in the property. So if you want to partially offer fast charging to your customers, be sure to price it as the premium product it is. Read more about fast vs normal charging here.

5: Increase occupancy by controlling 24/7 access

Are you in high demand for electric car charging? Create different subscriptions for day and evening hours. This reduces queues and increases occupancy — good for both you and your customers.

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Two payment models for electric car charging

When it comes to how to charge for the electric car charging service, there are currently two main models that you can use. Both have their own pros and cons, so consider how the different options match your conditions and your customers' needs.

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Fixed subscription fee with variable stream billing

Splitting the cost between a flat subscription fee and a variable stream charge allows you to create a fair payment model for your users. They pay for the right to charge, as well as the electricity they use — no more or less. This also means less risk for you when electricity prices rise.

Example: 300 SEK/month + 3 SEK/kWh

Advantages

• A fairer charging model for the customer
• Allows for load balancing with irregular power
• Provides incentives to think about their consumption and charge as needed
• Greater certainty in terms of cost recovery for electricity consumption

Disadvantages

• Reduces the incentive to use the charger
• May cause higher load during certain times of the day (when electricity is cheaper)
• More administration with electricity consumption readings and price adjustment

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Flat subscription fee with free recharge

Using a flat flat fee for the electric car charging is simple and requires minimal administration, however it is a less fair model because it does not take into account the user's consumption. It also means that you risk being left without cost recovery if electricity prices rise.

Example: 800 SEK/month

Advantages

• Simple Debit
• Fixed monthly income provides predictable investment calculation with fixed payback period
• High Utilization Incentives
• For example, can be packaged as a premium option for customers who prefer fixed price

Disadvantages

• Gives tenant a 'blunt' charge with risk of high charging cost
• Assumes definite power, cannot be offered against load balancing
• There is a risk that you will not be covered if electricity prices rise

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Charge the right way - pricing and customer experience are interrelated

No matter how you choose to charge for electric car charging, make sure you keep your customers in mind. For example, many people find electric car charging difficult, so if you prioritize offering a user-friendly service with clear and secure pricing, it can help you get more satisfied and loyal customers. Do you use a smart electric car charging system You also have the option to offer charging with different price models, so that your customers can choose how they want to pay. All in all, this contributes to making electric car charging a successful and future-proof part of your parking business.

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Do you want to succeed with electric car charging?

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