5 EV Charging Pricing Models for Hotels and Retail Businesses

When integrating electric vehicle (EV) charging stations into your hotel or retail business, a key decision revolves around choosing the right pricing structure. Since there's no universal solution, it's important to identify the approach that aligns best with your business objectives.

Below, we explore five effective EV charging pricing models tailored to various business needs.

1. Charging Based on Energy Consumed (kWh Billing)

Billing EV drivers according to their actual energy consumption is straightforward and transparent. This method allows you to directly offset the electricity costs incurred from operating the charging stations.

Example:

• Set price: $0.30 per kWh
• Charging session: 30 kWh used
• Total fee: 30 kWh × $0.30/kWh = $9.00

Compatible Solutions:

• Networked stations (examples include Everon, EV Connect, Greenlots)

Pros and Cons:

Pros:

• Simple and fair for users.
• Recovers operational energy costs effectively.

Cons:

• Doesn't prevent drivers from occupying stations after charging completes.
• May not be permissible in regions restricting energy resale.

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2. Charging Based on Time

Charging drivers based on time spent plugged into the station is ideal to prevent prolonged occupancy. This model encourages users to vacate stations once their vehicles reach full capacity.

Example:

• Set price: $2.25 per hour
• Charging session: 30 kWh charge at a 7.4 kW rate (~4 hours)
• Total fee: 4 hours × $2.25/hour = $9.00

Compatible Solutions:

• Networked charging stations (Everon, EV Connect, Greenlots)

Pros and Cons:

Pros:

• Universally legal.
• Discourages unnecessary station occupancy.

Cons:

• Slightly advantageous to vehicles with faster charging capacities (less time = lower cost).

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3. Hybrid Charging Model (Energy + Time)

This combined billing approach charges customers based on both energy usage and time connected. It's particularly suitable for locations looking to balance fair energy pricing with station availability management.

Example:

• Set price: $0.15 per kWh + $1.15 per hour
• Charging session: 30 kWh used over 4 hours
• Total fee: (30 kWh × $0.15) + (4 hours × $1.15) = $9.10

Compatible Solutions:

• Networked stations (Everon, EV Connect, Greenlots)

Pros and Cons:

Pros:

• Equitable pricing for most customers.
• Minimizes station occupancy after charge completion.

Cons:

• Complex to find an ideal pricing balance.
• May not comply in regions prohibiting energy resale.
• Slight advantage to faster-charging vehicles.

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4. Flat-Rate Charging

Flat-rate charging is simple and predictable—users pay a single fee regardless of usage. Ideal for businesses seeking minimal administrative overhead, this approach provides straightforward cost predictability.

Example:

• Set price: $9.00 per charging session (fixed fee)

Compatible Solutions:

• Networked stations (Everon, EV Connect, Greenlots)
• RFID-based systems (network-ready with access cards)
• Plug-and-charge stations (network-ready without access cards)

Pros and Cons:

Pros:

• Easy revenue collection.
• Transparent and straightforward for customers.
• No advantages based on charging speed.

Cons:

• Doesn't discourage unnecessary occupancy.
• Pricing may not reflect actual energy usage, making it potentially unfair for some drivers.
• Limited advanced smart charging options.

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5. Offering Free Charging

Providing complimentary EV charging is an attractive customer incentive, drawing more visitors to your location. While it doesn't generate direct revenue, free charging can enhance your brand's reputation and customer loyalty significantly.

Example:

• Set price: FREE

Compatible Solutions:

• Networked stations (Everon, EV Connect, Greenlots)
• RFID access-card setups
• Plug-and-charge configurations

Pros and Cons:

Pros:

• Highly appealing to customers, boosting satisfaction and repeat visits.
• Lower operational complexity (no billing management).

Cons:

• No direct revenue generation.
• Reduced opportunities for advanced smart charging features.

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Finding Your Ideal EV Charging Solution

Selecting the best EV charging model depends on your business objectives and customer profile. Some businesses prefer simplicity and minimal oversight (flat-rate or free), while others may prioritize profitability or usage optimization (hybrid, energy-based, or time-based models).

Whichever pricing strategy you choose, integrating EV charging into your hospitality or retail business can enhance customer experience, generate new revenue streams, and position your business favorably in the transition toward sustainable transportation.

Explore our comprehensive guide to understand how EV charging can elevate your business's competitiveness, profitability, and sustainability goals.