Linuxluver:Jeeves:
I continue to wonder how charge net makes a profit. Each charger looks to cost somewhere between $50-80k to install. They charge about 25c kw/h - let's say the electricty cost is half that, so gross profit is say 12c kw/h. If the average charge session is say 20kw/h, thats around $2.40 profit per charge. Each charge station would need over 20,000 charges before the capex is paid off. If we average i dunno, 5 charges per day - that's 4,166 days, or 11 years!
That's not including depreciation, maintenance, staff, IT costs, billing blah blah blah.
I can only assume my figures are way off or they are getting some decent subsidies, as that's a pretty ordinary pay back period.
They will be paying commercial power rates. My understanding is these are well below residential power rates per kWh. Steve West has said the 25c/kWh is the cost (aggregated) and the 25c / minute is the 'profit'.
I've also seen them comment they are looking to be profitable in 7 years. We're about 3 yesterday in at this point.
The West's appear to have the resources to support this. We all really should be grateful they are prepared to make this kind of investment so kickstart EV adoption. Yes, there has been some money from government for chargers in more remote locations. Yes, they have received some money from other private companies (BMW -/+ $100,000).
But at the moment, with just under 15,000 EVs, most of which charge at home, no one is getting rich here.
My work brings me a fair amount of understanding of power rates - 12c kw/h would be on the low side - it'll probably average 15-18 across the country. That's not really including all the other crap the lines companies throw on top - so the net cost of 25c wouldn't surprise me...
Don't get me wrong - I think what the Wests are doing is very noble considering their proven successful entrepreneurial track record, they could probably be making better money in other avenues. It's fantastic that we had someone who had the means to stand up so quickly to help with EV adoption.