EV Charging for Multi-Family Dwellings Part 5 – Cost Allocation Models

by | Oct 10, 2023 | 0 comments |

This is Part 5 of our EV Charging for Multi-Family Dwellings blog series. You can read part 1, which covers pre-installation considerations herepart 2 which covers the actual steps you need to take during your pre-installation processpart 3 which covers parking and building type considerations, and part 4 that covers total cost of ownership. To read the full series click here.

Multi-family dwelling owners and managers have a variety of options to recover costs that cover most plug-in electric vehicle (PEV) charging scenarios. It includes various charging technologies and electricity metering options that can support most business models. A business plan for MUDs must differentiate between an individual and multiple-use charging design. The plan should also cover differences between residential and commercial utility accounts, and ensure they meet all legal and regulatory requirements.

EV charging for multi-family dwellings also means deciding if you want to use an Electric Vehicle Supply Provider (EVSP) or become one. Some providers also offer support services that can include handling installation and maintenance. MUDs can also choose to handle these services without third-party support. Another option is using a hybrid model. For example, the MUD handles the installation, and the third-party vendor provides support for items like billing and energy usage tracking.

To help ensure you can recover some of the costs associated with offering EV charging in MUDs, here are some examples of cost recovery models for various installation scenarios.

Cost Allocation Models for EV Charging for MUDs

Business models to allocate costs vary and will continue to do so as technology advances. Here are some common scenarios that you may encounter.

Apogee Charging Solutions specializes in EV charging for MUDs. We offer a fully turn-key EV charging solution that can be customized to fit any scenario. No matter you product requirements, or operating system setup, we are here to help!

Individual Chargers

Scenario 1: Individual charges are connected to the residence’s electric panel. The resident is the electric consumer on record.

In this scenario, the EV owner is responsible for costs associated with installing and connecting the charger to their 120-volt outlet. Electricity flows directly from the resident’s outlet to the EV charger. The utility bill also comes to the resident instead of the MUD. The EV charger can be wired to the existing electric meter or the resident can choose to have an additional one installed. An electrical or mechanical lock prevents others from accessing the charging unit. Some wall-mounted chargers are also removable. The resident can connect and disconnect the charger as needed. With agreement from the MUD, residents can also install the charger in their assigned parking space.

Scenario 2: The resident is assigned a charging unit, but the MUD is responsible for electrical costs.

This scenario assumes the resident pays for installation and the MUD is the customer on record with the utility company. Access to the charger and security options are the same as in the first scenario.

Scenario 3: The MUD installs and assigns electrical meters to the resident who is then responsible for paying the electrical costs.

The MUD assigns parking spaces and installs electrical meters for owners of PEVs. The resident is responsible for purchasing and installation costs associated with the charging equipment. The resident also reimburses the MUD for electric use or becomes the customer on record at the utility.

Scenario 4: Individual chargers with networking capabilities. The MUD is the electrical customer on record.

EV chargers with networking capabilities are more costly to purchase but allow the MUD to track and monitor energy usage. The MUD can bill residents for their electric consumption. This scenario allows the MUD to recover some of the purchasing and installation costs.

Scenario 5: The individual EV charger is wired into a common area electrical box and the MUD is the utility customer on record.

The MUD adds a fee to the resident’s monthly lease to cover some of the purchasing, installation, and operating costs.

Scenario 6: A third party provides charging services to the MUD. The utility customer is agreed upon by the provider, MUD, and utility company.

A third-party vendor enters into a contract with the MUD to provide charging services to residents. The charging stations are individually assigned and residents are charged a monthly fee for usage.

If your MUD is privately owned with over 200 units, and you wish to inquire about a Third-Party Provider, contact Apogee Charging Solutions today! Please note: This is not a shared revenue opportunity, and there are unique requirements surrounding this approach, some properties may not qualify.

Shared Chargers

Scenario 1: Level 1 (120-volt) chargers are installed in common areas for use by multiple PEV owners. The MUD is the electric customer on record.

Charging units are installed in the parking lot for use by any residential owner of a plug-in electric vehicle. Access to the chargers is granted using an honor system or with an electric or mechanical lock. Residents create a charging schedule to accommodate everyone. The MUD charges a flat fee for the use of the chargers to cover operating costs.

Scenario 2: Networked EV chargers in common areas. The MUD is the electric customer on record.

Owners of electric vehicles can access the charging stations via a subscription service, credit card, or residential I.D. Drivers pay a monthly fee to use the chargers. MUDs can also charge by energy usage.

Networked charging units allow MUDs to track energy usage by customers and bill the resident accordingly.

Scenario 3: Third-party service provider to the multi-family dwelling.

This scenario is similar to the 2nd example. The third-party provides the charging service in agreement with the MUD owner/manager.

EV Charging for MUD – Cost Allocations Continue to Evolve

Allocating costs for EV charging business models will continue to evolve as technology advances. For example, chargers can bill drivers for the time the vehicle is connected to the unit, instead of only registering charging time. This business model will encourage drivers to unplug their vehicles when charging is complete, allowing other residents to access the charger.

Let the experts with Apogee Charging Solutions help electrify your MUD. Call 484-816-2076, email [email protected], or schedule a call that fits your needs by clicking the button below.


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