A Deep Dive into Level 1 & Level 2 Charging Costs for Property Managers
As the electric vehicle (EV) revolution accelerates, the infrastructure to support it, particularly EV charging stations, has become a critical consideration for property managers and real estate developers. Amid this green transition, a misleading notion has been circulating, propagated by a subset of electricians: the installation costs of Level 1 outlets are mistakenly said to be nearly equivalent to those of Level 2 chargers. At Plugzio, our mission is to debunk this myth with transparency and to guide our clients towards making cost-effective and environmentally sound decisions.
Demystifying Installation Costs: A Closer Look
The difference in installation costs between Level 1 and Level 2 EV charging solutions is not just significant; it's based on straightforward, quantifiable factors. To comprehend this disparity, let's delve into the anatomy of these costs, much like separating grains from chaff.
Component Costs: Imagine you're choosing between a simple, reliable bicycle and a high-performance motorcycle. The bicycle (akin to a Level 1 charger) requires fewer, more affordable parts—a reflection of its efficiency and simplicity. On the other hand, the motorcycle (resembling a Level 2 charger) demands more sophisticated, costly components to operate. Specifically, a 120V breaker—essential for Level 1 outlets—is less than half the cost of a 240V breaker needed for Level 2 setups. The price of 12 gauge wire, suitable for Level 1 installations, is less than a quarter of the 6 gauge wire necessary for Level 2 systems, illustrating the economic advantage of simpler setups.
Labor and Installation Complexity: Installing a Level 1 charger can be likened to planting a small, easy-to-manage garden, requiring minimal effort and just one gardener. Conversely, setting up a Level 2 charger resembles preparing a large, elaborate garden that demands the coordination of several gardeners. The thicker 6 gauge wire is less pliable, making it more challenging to install, hence requiring more hands on deck. This complexity translates directly into higher labor costs.
Electrical Infrastructure: Imagine your electrical panel as a bookshelf. Installing a Level 1 charger is like adding a slim novel to your collection—requiring minimal space. In contrast, accommodating a Level 2 charger is akin to finding room for an encyclopedia volume, often necessitating a larger "bookshelf," or an expensive upgrade of your electrical panel.
Some electricians may obscure these cost differences by providing a lump sum quote for the installation, rather than offering a detailed breakdown of costs.
Actionable Insight: When consulting with an electrician, insist on receiving a detailed breakdown of the installation costs, including the costs of individual materials and labor, instead of a lump sum. Explain that having this detailed information enables you to effectively compare contracts from different vendors. Electricians typically have this detailed cost information for internal purposes, such as inventory tracking and revenue calculation, but may choose not to disclose it to clients to increase their profit margins.
Understanding Long-term Maintenance Costs
The maintenance journey of EV charging stations unfolds over time, revealing cost implications that merit careful consideration. A pivotal element in this landscape is the charging cable itself, often the Achilles' heel of EV chargers due to its frequent use and exposure to physical wear and tear. Interestingly, Level 2 charging stations, which are permanently installed with built-in charging cables, encounter a higher likelihood of cable failure over time. This contrasts with Level 1 outlets, where individuals use their own portable chargers, significantly reducing the risk of cable-related issues on the property manager's side. This distinction is crucial, as the responsibility and cost of replacing a worn or damaged cable shift away from the property manager for Level 1 setups.
Further complicating the maintenance narrative is the warranty coverage—a topic that electricians may not fully disclose at the outset. Many electricians advertise EV charging products with an appealing five-year warranty, creating an initial sense of security and value. However, the fine print reveals a less comforting reality: after the first year, any maintenance visit incurs a steep charge of often more than "$180.00 per hour starting from when they leave the office" regardless of the nature of the visit. This could include simple tasks such as resetting the hardware, a common procedure that hardly justifies such high costs. This pricing strategy can significantly inflate the long-term ownership costs, a fact that property managers need to be aware of when making their initial investment.
Actionable Insight: When examining a contract from an electrical contractor, ensure that the labor warranty offered by the electrician matches the duration of the hardware parts warranty. If aligning both warranties is not feasible, strive to establish a maximum hourly rate (price cap) for any maintenance or labor required under the product warranty.
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.
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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.
Actionable insight: Get ahead of the curve by incorporating maintenance costs into your usage pricing strategy. This article offers a handy formula to help you calculate usage costs effectively!
Plugzio's Approach: Transparency and Sustainability
At Plugzio, we navigate these complexities with a commitment to transparency and sustainability. We understand the allure of higher upfront sales for more complex systems like Level 2 chargers. However, our ethos is grounded in honesty and the long-term satisfaction of our clients. To combat misinformation and ensure fair pricing, we've established a rigorous process for vetting electricians, emphasizing the importance of clear, upfront communication about the full lifecycle costs of EV charging installations.
Our team of project managers is dedicated to overseeing our network of electricians across the U.S., ensuring that our clients are not misled into paying exorbitant maintenance fees. If an electrician conflates the costs of Level 1 and Level 2 installations or obscures the true cost of maintenance, they are promptly removed from our trusted vendor list. This stringent policy reflects our commitment to providing solutions that not only meet our clients' current needs but also safeguard their interests over the lifespan of their EV charging infrastructure.
Navigating the Future with Confidence
The journey toward a fully electrified future is paved with choices and challenges, especially when it comes to building and maintaining EV charging infrastructure. By understanding the nuanced differences in installation and maintenance costs between Level 1 and Level 2 chargers, property managers can make decisions that align with both their financial objectives and environmental values.
Choose Plugzio as your partner in this journey. Our dedication to transparency, quality, and sustainability ensures that your path to electrification is guided by integrity and foresight. Together, we can create a future where EV charging is accessible, affordable, and aligned with the goal of a cleaner, greener planet.