CHARGING ADVICE
Charge point potential
There are some straightforward ways in which fleet operators can get the most from their EV chargers, believes Sara Sloman, chief strategy officer, Paythru
CHARGING ADVICE
Charge point potential
There are some straightforward ways in which fleet operators can get the most from their EV chargers, believes Sara Sloman, chief strategy officer, Paythru
While a lot of attention is focussed on public chargers, it is privately installed chargers that provide the reliable charging infrastructure that most drivers need to make the switch as seamlessly as possible from ICE to EV. And this situation is particularly true for electric fleets, which must be able to charge reliably – often overnight – to guarantee operation.
As a result, fleet operators will need to privately install lots of charge points on their own sites to give their vehicles a place to charge. But doing so is expensive. And, while electrifying fleets should hugely reduce operating costs in the long-term, chargers are a big capital outlay that may takes a year or more to recoup.
It is therefore worth considering how operators of large numbers of charge points might increase the income they generate, which will shorten the payback time and ultimately turn them into revenue generating assets.
Too often, the approach to charger installation is ‘just get them in the ground’. But, as Paythru discovered researching our recent report ‘You’ve installed EV chargers on your site – now what?’, there a lot that can be done to increase the revenue they generate.
“For example, there is the option of offering chargers out during the day to smaller fleet operators or private drivers without the resources or land to deploy their own chargers”
Sara Sloman, chief strategy officer, Paythru
More users, more money
The main way to generate additional revenue is to attract other users to your charge points when your fleets don’t need them. In fact, a recent Savills report found that operators can make up to £4,000 on each charging point every year.
If charge points are accessible, the quickest win is to put them on roaming platforms such as Zapmap, so when they are free, they can be found by people actively looking for a charge. Anecdotally, we’ve heard this increases utilisation by about 30%.
But why stop there, when operators can be so much more creative? For example, there is the option of offering chargers out during the day to smaller fleet operators or private drivers without the resources or land to deploy their own chargers. Or, fleet hub parking and charging could be leased to provide paring and charging for nearby events. If businesses are feeling really entrepreneurial, they could even rent out their land when its not in use – chargers and all – for on-site events. Plenty of markets are springing up in car parks, could fleet hubs be the next hipster hangout?
Benefits of easy payment
The other aspect of revenue generation is making it easy when users get there, otherwise they risk getting lost to a rival. People want to arrive, plug in, start the charge, and pay for it simply.
Apps or RFID cards can be good for people who use the same chargers regularly – such as a company’s fleets or employees, or long-term partners. Occasional or passing users will more likely want to pay with a credit or debit card at a terminal, or via a simple web app, with no sign up.
Fleets may also want to set different rates for different users – eg. free charging for its fleet vehicles, subsidised rates for partners who use them regularly and market rate for ad hoc users. That means setting up identifiers (eg. through their registered card or app) and allocate any preferential rates automatically (no-one wants them to have to go through a menu every day to identify themselves before a charge).
There is no ‘one size fits all’ solution – all the above payment approaches work well for some and poorly for others. In designing a payment structure, the range of users needs to be considered – as well as the options they might want, which means providing clear information as to what these are.
A final challenge is communicating clearly. Too many chargers are underused because people find them too complicated. Chargers need clear signposting explaining fees (including any variable rates, overstay fees, and parking fees) and how to start and end the charge.
Decide on digital
Digital solutions will likely be needed in all of the above scenarios. By lifting the payment away from the charger and into the cloud (connected via an API) fleets can setup payment systems to suit different users.
That means building an easy-to-use charging app. Or, alternatively, integrating payments into someone else’s app to allow charging at the charge points to be added on to a pre-existing service.
Or, for those who don’t like apps, set up alternative payment options, such as online pre-booking or a payment site accessed via a web address and charger code printed on the charger. Another alternative is the integration with existing digital parking payment terminals.
Digital technologies can also add in clever functionality, such as managing payment splits between multiple parties, where needed, allowing partnership arrangements to be setup while keeping the payment simple at point-of-use.
An opportunity for those who want it
None of this guidance is intended to be prescriptive. But, for those who wish to do so, there is likely to be a revenue generation opportunity from charging infrastructure that is not being fully tapped, both by attracting more users and making chargers desirable through an easy user experience. Our key takeaway is that fleet operators should think beyond getting chargers in the ground for their own needs – and think about other opportunities to generate value from them.
