Usage Cost Calculator. What is the best strategy to calculate a cost for usage?


Plugzio is a comprehensive platform that provides flexible options to monetize, monitor, and manage access to power as per your preferences.

Pricing electric vehicle charging stations at an apartment complex requires a strategic approach to ensure both profitability and competitiveness in the market. This guide outlines a method to calculate an optimal price that considers costs, desired profit margin, and competition from nearby public charging stations.

In most scenarios, setting of usage fees depends on three crucial factors:

  • The property's utility rate and other on-going costs
  • The property's expected return on EV charging investment
  • Local close-by EV charger rates


Pricing Formula

The pricing can be determined using the following formula:

P=((E+M+O)×(1+r))×C

Where:
  • P: Price per hour of usage (preferred over per kWh)
  • E: Electricity cost per kWh
  • M: Maintenance costs extrapolated per hour of usage
  • O: Other operational costs including service fees
  • r: Desired profit margin as a decimal (e.g., 20% profit is 0.20)
  • C: Competition factor, ranging from 0 to 1

Calculate Electricity Cost (E)
This can be determined from the utility bill of the property. Add the associated costs including any applicable taxes.

Calculating Average Monthly usage to calculate on-going costs
In order to calculate some of the parameters in the formula, we need to calculate the average number of hours a charger will be used in a month.

According to  US department of transportation⁠ , Average Annual Miles traveled per Driver is 13,476 miles.

According to  US department of Energy⁠ , electric vehicles based on their efficiency on average consume 0.346 kWh per mile.

Based on these two factors, an electric vehicle on average requires 388.558 kWh of power to recharge the average monthly consumption.

A Plugzio Cando Level 2 (240V 40A) charger delivers 9.6 kW, Plugzio Universal (240V 16A) delivers 3.84 kWh, Plugzio Outlet (120V 16A) delivers 1.92 kWh of power per hour to an electric vehicle. Here are the number of hours an electric vehicle requires to charge based on average consumption.

  • Plugzio Cando (240V 40A) - 40.47 hours of charging per month (1.4 hours a night)
  • Plugzio Universal (240V 16A) - 101.18 hours of charging per month (3.37 hours a night)
  • Plugzio Outlet (120 16A) - 202.37 hours of charging per month (6.74 hours a night)

This calculation assumes electric vehicle is only charging over night at primary residence and no public charger is used.

Calculate Maintenance Cost (M)

According to an independent study done by  AES Engineering⁠ , average 20-year life cycle cost of a Level 2 charger is $8,500, in comparison lifecycle cost of a Level 1 outlet is $824.


Average maintenance cost of a Level 1 charger per year equals $42.50, the cost for a Level 2 charger is $425 per year. This number is confirmed by  US department of Energy⁠ .

Based on the calculated hourly usage, maintenance cost per hour is calculated as follow for each of Plugzio products:
  • Plugzio Cando (240V 40A) - $0.8750302 per hour of usage
  • Plugzio Universal (240V 16A) - $0.3500121 per hour of usage
  • Plugzio Outlet (120V 16A) - $0.0175006 per hour of usage

Based on laws of physics as the power goes higher so does the maintenance and upkeep costs.
Determine Other Operational Costs (O)
Identify other costs involved in operating the charging stations. Depending on what business model the property goes with, at a maximum property will be charged $15 per month per device to cover service fees. We can calculate the hourly cost based on the vehicle's usage of the device as follows:

  • Plugzio Cando (240V 40A) - $0.3706010 per hour of usage
  • Plugzio Universal (240V 16A) - $0.1482404 per hour of usage
  • Plugzio Outlet (120 16A) - $0.0741202 per hour of usage

Choose a Profit Margin (r)
Decide on a reasonable profit margin that aligns with the market rate and the apartment complex's goals. The profit margin has a direct relationship with your rate of return on your EV charging investment. The higher the profit margin the faster your ROI.

Your Profit per year is calculated based on the following formula:

Profit per year (ppy) = profit margin (r) * price per hour (P) * Number of hours vehicle is charged per year (H)

ROI in years = Total cost of installation / Profit per year (ppy)

Assess Competitive Pricing (C):
  • Identify Key Competitors: Analyze nearby public charging stations and their pricing.
  • Assess the Competitive Pricing: Evaluate the price range of competitive charging stations.
  • Determine the Value Proposition: Assess the unique value that charging at the apartment complex provides.
  • Calculate the Competition Factor (C): Derive a competition factor to adjust the price to remain competitive.


Instructions on how to use the online calculator


To use the calculator, please enter the following information:
  • Cost of electricity at your property, per kWh
  • Sum of the taxes you're paying on top of the kWh cost
  • Choosing the type of device you have (Your device is equivalent to Plugzio Cando)
  • Device Voltage
  • Device Amperage
  • Average annual mileage per vehicle in your region
  • The subscription you have selected for the devices
  • The profit margin you're looking for
  • Cost of Installation

After entering the information above, the values below will be calculated for you on the right panel of the calculator:
  • Effective Cost of Electricity per kWh at Your Property (Including Taxes):
  • Estimated Hourly Power Consumption of an Electric Vehicle Using the Selected Charger
  • Recommended Hourly Rate along with the rate per kWh
  • Annual generated revenue
  • Annual Profit
  • Return on Investment (ROI)
  • A chart displaying your yearly profit or loss


Sources:

  • Electric Vehicle Charging Infrastructure in New Multifamily Developments - Requirement Options and Costing Analysis -  https://udi.bc.ca/wp-content/uploads/2017/06/Final-Report-r004-EV-Requirements-20170404.pdf 
  • Average miles driven per year by state -  https://www.carinsurance.com/Articles/average-miles-driven-per-year-by-state.aspx 
  • Average Annual Miles per Driver by Age Group -  https://www.fhwa.dot.gov/ohim/onh00/bar8.htm 
  • Electric vehicle fuel efficiency -  https://www.fueleconomy.gov/feg/PowerSearch.do?action=noform&year1=2000&year2=2021&cbmcsmallCars=Small+Cars&cbmcfamilySedans=Family+Sedans&cbmcupscaleSedans=Upscale+Sedans&cbmcluxurySedans=Luxury+Sedans&cbmclargeSedans=Large+Sedans&cbmchatchbacks=Hatchbacks&cbmcCoupes=Coupes&cbmcconvertibles=Convertibles&cbmcSports_Sporty_Cars=Sports%2FSporty+Cars&cbmcstationWagons=Station+Wagons&cbmcpickupTrucks=Pickup+Trucks&cbmcsportUtilityVehicles=Sport+Utility+Vehicles&cbmcminivans=Minivans&minmsrpsel=0&maxmsrpsel=0&city=0&hwy=0&comb=0&cbvtelectric=Electric&YearSel=2000-2021&make=&mclass=Small+Cars%2C+Family+Sedans%2C+Upscale+Sedans%2C+Luxury+Sedans%2C+Large+Sedans%2C+Hatchbacks%2C+Coupes%2C+Convertibles%2C+Sports%2FSporty+Cars%2C+Station+Wagons%2C+Pickup+Trucks%2C+Sport+Utility+Vehicles%2C+Minivans&vfuel=&vtype=Electric&trany=&drive=&cyl=&MpgSel=000&sortBy=&Units=&url=SearchServlet&opt=new&minmsrp=0&maxmsrp=0&minmpg=0&maxmpg=0&sCharge=&tCharge=&startstop=&cylDeact=&pageno=1&tabView=0&rowLimit=200 
  • Charging Infrastructure Operation and Maintenance -  https://afdc.energy.gov/fuels/electricity_infrastructure_maintenance_and_operation.html 


  •