The hidden charges behind EV charging
Consider this: It takes as much energy to fully charge an electric vehicle as it does to power your home for three days.
While there’s no doubt that electric vehicles (EVs) provide a multitude of benefits, adding charging stations to your facility has the little known potential to increase your long-term energy costs. We recommend that when considering an investment in EV charging stations, you do so holistically and as a component of your overall energy strategy, or you may be in for a big surprise.
Charge ahead with EV chargers
In 2020 alone, about six million light duty electric vehicles were sold in the U.S., and experts predict that sales will continue to skyrocket in coming years. This kind of growth requires immense infrastructure development – and by contributing to it, your business can encourage more EV adoption while gaining a competitive edge.
By installing EV charging stations in your business’s parking lot, you increase property value, showcase your commitment to reducing its carbon footprint, and attract customers, employees, and tenants. For commercial fleet owners, investing in EVs and their charging stations reduces fuel and long-term maintenance costs. Plus, making EV chargers available adds convenience and reduces range anxiety, which encourages others to invest in EVs as well.
Understanding EV charger costs
When investing in EV charging, many businesses may overlook the impact that this will have on their property’s overall electricity consumption. Since your charging station typically draws electricity from the grid, your utility bill will naturally increase with every charge. What’s more, charging commonly occurs during business hours when utility rates tend to be the most expensive.
Beyond simply boosting overall electricity consumption, EV charging stations can drive up utility costs by increasing a business’s demand charges. Demand charges are the portion of your utility bill that account for the maximum power demand consumed during a 15-minute period in a given billing cycle. A fast-charging station creates a surge in your electricity demand that can significantly increase your demand charge – and costs can grow exponentially when multiple chargers are used at the same time.
Even without EV charging, demand charges can comprise up to 80% of a business’s monthly utility bill, and one study by Rocky Mountain Institute found that demand charges can be responsible for over 90% of electricity costs associated with commercial EV chargers.
Mitigating EV charger costs
To avoid having to reactively manage soaring electricity costs, we recommend approaching your EV charging stations as a component within your facility’s energy management strategy. You can proactively plan to leverage other onsite resources such as solar and battery energy storage to support your current and increased electricity needs.
If you don’t already have an onsite solar system, it would be prudent to consider installing one to meet some, if not all, of your EV chargers’ increased electricity demand. The good news is that solar produces energy during daylight hours, which generally coincides with EV charging times. When chargers are not in use, you can use the produced energy elsewhere in your facility, further reducing your utility costs.
Battery energy storage can also mitigate charging issues associated with expensive peak utility rates and demand charges through “load shifting.” The battery simply stores electricity when rates are lowest and dispatches the electricity to charge an EV as needed. The flexibility afforded by batteries enables you to take advantage of cheap electricity prices, as well as avoid exorbitant demand charge costs by reducing the occurrence of demand spikes.
Getting charged up for EV chargers
Last year, more than 21,000 EV charging ports were installed at roughly 4,800 charging stations in the U.S. As we sit on the precipice of a full transition to EVs, your business has the opportunity to get ahead of your competition, attract engaged employees and tenants, and reduce your carbon footprint by installing EV charging stations at your facility.
However, this investment requires careful planning and consideration of how it will impact your broader energy strategy. Before installing chargers, you’ll want to carefully assess your entire site’s electricity consumption patterns and needs in order to forecast the impact of the increased demand from EV chargers. You’ll also want to explore instating energy automation software to control how and when your EV charging stations are used. Now is the time to embrace EVs – just make sure to take the holistic road.
Want to learn more about if EV charging is right for your facility? Contact Promise Energy to schedule a discussion with one of our in-house experts
At Promise Energy, we don’t believe that one size fits all. We pride ourselves in designing and installing customized energy solutions that provide the greatest long-term value and energy control for our customers.
