April 7, 2023
5
min read
Why should property managers submeter their EV chargers?
Submetering EV chargers can provide property managers with more control over their energy costs and usage.
Electric vehicle sales are rapidly rising. Kelley Blue Book reports a 65% increase in 2022 from 2021 and new EV sales in the U.S. are expected to blow past 1 million cars in 2023.
With this increase in electrified cars on the road, EV charging is becoming a much more common (and demanded) amenity for multi-family properties. Before installation Level 2 EV chargers can range from $500 or less to over $1500 according to Consumer Reports. Recovering the investment to purchase and install chargers is only part of the equation for property owners. The ongoing cost to charge a vehicle was an estimated $550 annually in 2021, based on 12,000 miles of driving and $0.13/kWh of electricity, however some regions of the country have experienced prices of $0.30/kWh or more in recent months.
Given the ongoing cost and potential risks EV chargers introduce to properties, you may be surprised to discover that many Level 2 EV chargers do not provide native submetering capabilities. This leaves property owners and managers with the decision of whether to invest in their own metering.
Property owners and managers may choose to submeter EV chargers for a variety of reasons, including:
- Cost Allocation: Submetering allows property managers to accurately allocate the cost of electricity used by EV chargers to the specific tenants who use them, rather than spreading the cost evenly across all tenants. This ensures that those who use the chargers are responsible for paying for the electricity they consume, rather than passing on the cost to all tenants.
- Billing and Revenue Generation: Submetering can also allow property managers to bill tenants directly for the electricity they use (potentially in addition to paying for access to chargers), creating new revenue streams for the property. This can help offset the cost of installing and maintaining the EV charging infrastructure.
- Energy Management: Submetering can provide property managers with valuable data on the energy consumption of their EV charging stations, which can be used to optimize energy usage, identify inefficiencies, and reduce costs. In some areas, EVs may even be able to participate in Demand Response programs.
- Compliance: Some states and municipalities require submetering of EV chargers in certain situations, such as when a property receives incentives or rebates for installing EV charging infrastructure.
Submetering EV chargers can provide property managers with more control over their energy costs and usage, while also improving the tenant experience and promoting sustainable transportation. Unfortunately, many available submetering options are cost prohibitive. If the upfront costs are too high, it dilutes the potential return on investment (ROI) and may dissuade the property from adding submetering or even installing EV chargers at all.
Fortunately, technologies like Vutility’s HotDrops are making revenue-grade submetering simple, cost-effective, and scalable for a wide range of use cases, including EV charging.
Based on the available research, if the cost barriers to submeter are reduced enough, the case is clear to submeter EV chargers at multi-family properties. De-risking and offsetting the costs of EV charging is a win for the property owners and managers, while also providing a highly desirable and important tenant experience differentiator for the property residents.
