Navigating Electric Vehicle Charging Billing Strategies for Property Owners

As the electric vehicle (EV) revolution sweeps the nation, property owners and managers are faced with the crucial decision of implementing an Electric Vehicle Supply Equipment (EVSE) rollout and determining how to bill EV drivers for their charging usage. The complexities of this decision can be daunting, but by understanding key criteria and leveraging pricing information, property owners can make informed choices. In this blog post, we'll dive deep into the factors that property owners should consider when implementing EV charging infrastructure and billing methods, shedding light on average power costs to help you make the right decision for your property.

Key Criteria for Implementing EV Charging Billing:

1. Regulatory Compliance: Property owners must first ensure that their chosen billing method aligns with local regulations. Compliance with Alberta's electricity resale regulations is crucial to avoid legal issues and penalties. Seek legal counsel if needed to navigate these regulations effectively.

2. Tenant Preferences: Consider the preferences of your tenants. Some may prefer an all-inclusive rent that covers EV charging costs, while others may prefer transparent billing methods. Flexibility in billing can attract a wider range of tenants.

3. Charging Station Type: The type of charging stations you install will influence billing. Level 1 chargers are slower and may warrant inclusion in rent, while Level 2 chargers or fast chargers are better suited for individual billing due to their faster charging times.

4. Power Cost Components: Understanding the breakdown of power costs is crucial. Electricity bills consist of energy charges, distribution charges, transmission charges, local access fees, administration fees, rate riders, and taxes. Providing tenants with a clear breakdown of these costs can enhance transparency.

5. Billing Options: Explore various billing options, such as inclusion in rent, flat monthly fees, submetering, time-based charging, prepaid cards, pay-per-use stations, or power purchase agreements. Each has its advantages and disadvantages, so choose the one that aligns with your property's goals and tenant preferences.

6. Energy Efficiency: Encourage energy efficiency among tenants by providing information on reducing consumption. Energy-efficient appliances, LED lighting, programmable thermostats, and improved insulation can help reduce overall electricity costs.

7. Cost Estimation Tools: Utilize online calculators and tools provided by the Alberta Utilities Commission (AUC) or utility companies to help tenants estimate their monthly or annual electricity costs. These tools can provide valuable insights into billing expectations.

8. Consultation: For complex billing scenarios or significant electricity costs, consider consulting with an energy broker or advisor. They can offer personalized insights and recommendations tailored to your property.

Average Power Costs and Billing Options:

Understanding the average power costs in Alberta is essential for property owners. Here's a breakdown of average electricity costs per kilowatt-hour (kWh) for different consumer categories over a specific period:

• Farm: $0.16/kWh

• Home: $0.17/kWh

• Small Business: $0.17/kWh

Utilities Consumer Advocate: Rate Information (alberta.ca)

These rates can serve as reference points when determining appropriate billing rates for EV charging. For example, if you choose to implement time-based charging, you can align peak charging rates with higher electricity costs to encourage off-peak charging. Utilities Consumer Advocate: Regulatory & Policy Information (alberta.ca)

Let's delve into some common billing options property owners can consider:

1. Inclusion in Rent: This option simplifies billing but may not encourage energy conservation. Consider whether it's fair to non-EV owners and whether it aligns with tenant preferences.

2. Flat Monthly Fee: Easy to administer and provides steady revenue but may not reflect actual usage. Ensure that the fee covers the associated electricity costs adequately.

3. Submetering: Fair as tenants pay for their usage, promotes energy conservation, but requires initial installation and ongoing administration.

4. Time-Based Charging: Encourages off-peak charging, simplifies administration, but may restrict charging times for tenants.

5. Prepaid Charging Cards or Accounts: Provides flexibility for tenants and ensures owners are not out-of-pocket but requires system setup and account management.

6. Pay-Per-Use Charging Stations: Aligns costs with use, can be managed by a third-party, but may have a higher cost per charge and require subscriptions.

7. Power Purchase Agreements (PPAs): Offers cost certainty for tenants and can be managed by a third party, but involves contract complexity and potential inflexibility with future price changes.

Implementing EV charging infrastructure and determining billing methods is a pivotal decision for property owners. By considering regulatory compliance, tenant preferences, charging station types, power cost components, billing options, energy efficiency, cost estimation tools, and consultation, property owners can navigate this complex landscape effectively. Understanding average power costs in Alberta and choosing the right billing option based on these factors can lead to a fair and transparent billing system that benefits both property owners and tenants. Embrace the electric vehicle revolution with confidence and create an EV-friendly environment for your property.

For more information contact solutions@dadsales.com