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Would You Pay $4 For 90 Minutes Of Electric Car Charging?

 
1,411 views Aug 8, 2011
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Charging station at Hertz Global EV rental launch, New York City, December 2010

Charging station at Hertz Global EV rental launch, New York City, December 2010

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 A few weeks ago we told you that pharmaceuticals giant Walgreens had begun to install Level 2 electric car stations at stores in New York City, Houston, Dallas-Fort Worth and Chicago.

While the presence of electric car charging stations -- an estimated 800 at Walgreens stores alone -- are a great way of combating perceived range anxiety in motorists considering the switch to electric, they won’t be good for your pocket.

Why? 


Because Walgreens’ electric car charging partners are planning on charging between $3 and $4 for a 90 minute recharge.

Scenes from dedication of electric-car charging station at Creekside Inn, Palo Alto, CA

Scenes from dedication of electric-car charging station at Creekside Inn, Palo Alto, CA

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And that’s not for an ultra-rapid DC charge, capable of charging cars like the 2011 Nissan Leaf and 2012 Mitsubishi i to 80% full in under 20 minutes. No, we’re talking $3-4 for 90 minutes at a Level 2 charging station. 

If you drive a car like the 2011 Nissan Leaf, that equates to around 20 miles of range. 

Unless you’ve driven your car to almost empty, we can’t think of many electric car owners who would want to set aside as much as $4 for a lousy 20 miles. 

Why the cost? Ultimately, charging infrastructure firms argue that the cost of installing and maintaining interconnected ‘smart’ charging stations has to be recuperated through the customers. However, as any businessperson will tell you, a service is only worth as much as people are willing to pay for it. 

Portland CHAdeMO quick-charging station (publicly accessible)

Portland CHAdeMO quick-charging station (publicly accessible)

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We think electric car customers are more likely to pay higher prices for rapid DC charging, capable of substantially increasing the range of a partially charged electric car.   

Something tells us that Level 2 charging has to cost a lot less. 

Yes, electric car charging stations should -- and need to -- make some charge for the electricity and facility they provide, but how much is too much? 

Let us know in the Comments below. 

[Bnet]






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Comments (22)

  1. fb_1245394793 avatar Jeffrey Ulshafer Posted: 8/8/2011 6:36am PDT

    We know a 90 minute charge on level 2 shouldn't be anywhere near $4. Think about it. We won't have a handful of stations similar to gasoline that only serve key locations customers drive to. Charging will gradually develop anyplace standard electricity is available. I see HEAVY competition in the future. How long before someone offers the same charge for half the cost? And if people can charge at home they will for much less. But I understand, this is for if you must absolutely have a recharge. Again, I see competition making this a non-issue.
     
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  2. CDspeed avatar CDspeed . Posted: 8/8/2011 7:30am PDT

    That is a bit much, they should charge you the actual cost of the electricity and maybe a fair service charge. I've often thought that some businesses may offer free charging to attract more business or to attract more customers during the holiday season.
     
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  3. rjolly avatar Rick Jolly Posted: 8/8/2011 8:36am PDT

    Charging stations will not be profitable until the number of electric cars increase substantially. They'll lose money no matter what the price. Best to offer cheap charging to attract and impress customers.
     
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  4. fb_9434926 avatar Dr. Zeman Posted: 8/8/2011 9:13am PDT

    The only purpose for a business to install charging stations is to attract customers. The only price that makes sense for the business is free or just the cost of the electricity. Walgreens will likely lose customers with such a high price on their charging.
     
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  5. fb_100000005296979 avatar Kent Beuchert Posted: 8/8/2011 9:27am PDT

    I don't see where the 20 miles comes from. That would indicate a paltry absorption amp rate of around 16 amps at 240V. Level 2 usually means 240V, 30A,40A or 50A as I recall. Electricity has NEVER been billed by the hour - that doesn't make any sense. I have heard of rates quoted for commercial charge stations that I thought were high (50 cents per kWhr - that's as expensive as gasoline) but you're claiming $1 per kWhr. None of the data provided here makes any sense, so I'll assume it's mistaken. Better recheck and confirm and find out exactly how much electricity that 90 minutes provides - level 2 should provide way more than 20 miles in 90 minutes. As I recall, Tesla roadster can get 240 miles from 4 hours of Level 2 charging.
     
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  6. fb_535830066 avatar Nikki Gordon-Bloomfield Posted: 8/8/2011 10:17am PDT

    Kent,

    90 minutes in a Tesla is a whole different game to 90 minutes for a Leaf, which can only pull 16 Amps at 240V.

    Nikki.
     
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  7. yoyofella avatar Jack Chen Posted: 8/8/2011 9:38am PDT

    $4 for 90min is a bargain. The City of Los Altos Hills is charging $5 for just 60min of charging. I guess it's not fair unless EVs are as expensive to drive as Hummers.
     
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  8. Noel Park avatar Noel Park Posted: 8/8/2011 12:54pm PDT

    My answer to the headline is NOPE! I'll just drive on by in my Volt and smile. At that price it's cheaper to drive on gas, LOL. #1756
     
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  9. Houstondav avatar David Leal Posted: 8/8/2011 1:42pm PDT

    I have a Leaf and find no problem paying $3-4 for a 20-25 mile range. I see it as no different than paying $3-4 per gallon to go 18 miles in my Traverse. If I have to charge away from home then I would expect to pay more. Thou I don't think I would use it much unless I plan a trip further out of town. In 5300 miles in 14 weeks not once have I pluged in away from home.
     
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  10. James Davis avatar James Davis Posted: 8/8/2011 2:54pm PDT

    Walgreens greed will loose them even more customers than their pathetically stocked shelves. Who do they think they are... GM (Government Motors)?
     
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  11. fb_1470388190 avatar David Laur Posted: 8/9/2011 10:51am PDT

    i fully expect Walgrens to wise up and implement a "Safeway" like system. Safeway discounts its gas based on how much you buy. i would envision a buck an hour for purchases between say $5-20 and 50 cents an hour for purchases of $20+. if no purchase, then pay the $4. this eliminates parking enforcement for Walgrens and also allows them to see a real value for providing the service.
     
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  12. fb_100001094176420 avatar Ele Truk Posted: 8/9/2011 11:08am PDT

    That's a really good idea. Since I get those stupid gas discounts at grocery stores I kind laugh, since I don't buy gas. But if I could apply that discount to a charge, count me in!
     
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  13. davetex99 avatar David Davidson Posted: 8/10/2011 6:55am PDT

    I don't believe charging for charging will be a good business model except for the fast charging (Level 3). I believe most businesses will provide free Level 2 charging as advertising (and I can see it being limited to customers). If you compare charging to the multitude of coupons distributed, charging is a cheap way to entice customers. Most people with EVs will find that charging at home will meet their needs, so will be hesitant to pay for charging. However, they will likely patronize businesses with free charging just to show their support and to feel like they're getting something for nothing. A dollar's worth of electricity while I eat is a lot cheaper than giving me a coupon for 20% off my meal (and I get a lot of those)
     
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  14. fb_100001663981238 avatar Daniel Chavez Moran Posted: 8/10/2011 10:25am PDT

    Def a higher cost than expected. Thats the premium pricing one pays for being an early adopter.
     
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  15. fb_542856692 avatar Rich Civil Posted: 8/4/2012 8:22pm PDT

    Who spends 90 minutes at Walgreens?
     
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  16. fb_749714186 avatar Paul Eng Posted: 8/4/2012 9:02pm PDT

    I'd have to be REALLY DESPERATE to pay $4 for 90 minutes of Level 2 charging. Still, I can go from a half-empty battery to nearly full in just 2 hours of Level 2 charging on my Focus BEV. (Thank you Ford for going with a 6.6 kWh charger on-board!) So, if I was spending 90 minutes shopping at Walgreens (is that possible?) and NEEDED a charge anyway...

    I think businesses, such as Walgreen's, deserve to recoup some of the cost of installing and running the public chargers on their parking lots. AND it's probably going to take them a while to figure out the business model--whether it's a for-pay system or some sort of customer loyalty program. Just look at how businesses still struggle with public WiFi hotspot management!
     
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  17. caffeinekid avatar Steve Archer Posted: 8/5/2012 5:35am PDT

    When EVs reach price parity with conventional ICE vehicles, THEN and only then should fueling costs come anywhere near what gasoline/diesel costs. Until then, one of the main draws for EVs is the lower fueling costs. I am proud of Walgreens as they have taken the lead, but this isn't going to work well for them. They should stick with letting eVgo handle the charging stations.
     
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  18. solarHarmonics avatar Jamie Duran Posted: 8/5/2012 11:48am PDT

    I unfortunately paid $150 trying to use the Level 1 charging at the OAK airport...The charge stations are located in the Premier Parking, and the stations are level 1, so it took 7 hours to charge my car. Spent $36 in Premier Parking fees, $114 to rent a car to get to my meetings on time!
     
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  19. fb_1559222512 avatar Xiaolong Li Posted: 8/5/2012 12:50pm PDT

    At that rate, a Prius with 50mpg is cheaper. Even at 6.6KW, it gives you only 40-50 miles in range in 90 minutes.
     
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  20. fb_616630496 avatar Christine Andrews Posted: 8/7/2012 4:55am PDT

    I live in Maui, where our electricity is very expensive (about $0.40 a kwh). I feel bad taking electricity for free, since it is a huge cost to the charging station host. That said, even on Maui, $4 per 90 minutes seems high. $1 per 30 minutes, or $3 for 90 minutes seems fair.
     
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  21. fb_100000874609285 avatar Jason King Posted: 8/7/2012 10:24am PDT

    It can't cost more than a Prius on gas. Otherwise, that's the point?
     
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  22. rlewis123 avatar richard lewis Posted: 8/8/2012 6:07am PDT

    I believe that commercial entities like retailers and perhaps even some employers are going to turn "range anxiety" into a new profit center for themselves. This will go this way until some retailers like Costco, Walmart, Target and others just put in 50 stations in all their parking lots. From a retailers point of view some of them are offering food courts and gasoline stations as loss leaders already. What better situation could they have than to offer a service that would make customers to hang out longer and as a result buy more commercial products while their car is getting charged for low cost or no cost.
     
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