Case Study: DC Rapid Charger Shootout — Go Big, Go Small, or Not At All

We considered different utilization rates, growth in demand, and other factors to determine which charging capacity offers the greatest financial benefits. The costs for each scenario included the average installed charger’s price, a 5-year maintenance package, data, and monitoring. Electricity resale price was assumed at $0.45 per kWh, while the cost price was at $0.11 per kWh.

Next, we considered varying utilization rates for each year: 15% in year one, 28% in year two, 39% in year three, 45% in year four, and 55% in year five. Under these conditions, the 150-kW charger still provided the highest ROI at 211.05%, compared to the 30 kW and 60 kW chargers, which both had ROIs of 159.21%.

In summary, across the scenarios examined, investing in a high-capacity 150-kW charger consistently yielded the highest financial benefits. This indicates that for businesses looking to invest in EV charging stations, opting for high-capacity DC rapid chargers is a more profitable and future-proof solution. These calculations are modified based on the following assumptions:

• Electricity cost price: The cost of electricity is assumed to be $0.11 per kWh.
• Resale price of electricity: The resale price is assumed to be $0.45 per kWh.
• Charger costs: The costs, including a 5-year maintenance package, data, and monitoring, and average installed costs are assumed to be:

1. Scenario 1 (30 kW charger): $60,000
2. Scenario 2 (60 kW charger): $120,000
3. Scenario 3 (150 kW charger): $250,000

Utilization rates: Different utilization rates for each year are assumed as follows:
• Year 1: 15%
• Year 2: 28%
• Year 3: 39%
• Year 4: 45%
• Year 5: 55%
Charging days per year: 350 days of operation per year are assumed.
5-year time frame: The calculations are based on five years, and the profit and ROI calculations are focused on this time frame.
These assumptions form the basis for the above calculations, which compare the financial benefits and return on investment (ROI) of different charging scenarios.

Scenario 1 (30 kW charger):
Year 1 profit: $244.80 * 350 days * 0.15 = $12,852
Year 2 profit: $244.80 * 350 days * 0.28 = $23,932.80
Year 3 profit: $244.80 * 350 days * 0.39 = $33,267.60 (this system would cap at 39% due to its power limits)
Year 4 profit: $244.80 * 350 days * 0.39 = $33,267.60
Year 5 profit: $244.80 * 350 days * 0.39 = $33,267.60
5-year profit = $12,852 + $23,932.80 + $33,267.60 + $33,267.60+ $33,267.60 = $136,587.60

Scenario 2 (60 kW charger):
Year 1 profit: $489.60 * 350 days * 0.15 = $25,704
Year 2 profit: $489.60 * 350 days * 0.28 = $47,865.60
Year 3 profit: $489.60 * 350 days * 0.39 = $66,535.20
Year 4 profit: $489.60 * 350 days * 0.45 = $77,028
Year 5 profit: $489.60 * 350 days * 0.55 = $93,918
5-year profit = $25,704 + $47,865.60 + $66,535.20 + $77,028 + $93,918 = $311,050.80

Scenario 3 (150 kW charger):
Year 1 profit: $1,224.00 * 350 days * 0.15 = $64,260
Year 2 profit: $1,224.00 * 350 days * 0.28 = $119,664
Year 3 profit: $1,224.00 * 350 days * 0.39 = $166,338
Year 4 profit: $1,224.00 * 350 days * 0.45 = $192,570
Year 5 profit: $1,224.00 * 350 days * 0.55 = $234,795
5-year profit = $64,260 + $119,664 + $166,338 + $192,570 + $234,795 = $777,627

Now, let’s calculate the ROI for each scenario with the specified utilization rates:
Scenario 1 (30 kW charger): ~Estimated lease payment of $1,400.00 per month @ 60 months
Total cost = $60,000
5-year profit = $155,525.40
ROI = ($136,587.60 – $60,000) / $60,000 * 100 = 127.65% – Simple Payback is 2.6 years.
Scenario 2 (60 kW charger): ~Estimated lease payment of $2,500.00 per month @ 60 months
Total cost = $120,000
5-year profit = $311,050.80
ROI = ($311,050.80 – $120,000) / $120,000 * 100 = 159.21% – Simple payback is 2.6 years.

Scenario 3 (150 kW charger): ~Estimated lease payment of $5,100.00 per month @ 60 months
Total cost = $250,000
5-year profit = $777,627
ROI = ($777,627 – $250,000) / $250,000 * 100 = 211.05% Simple payback is 3.11 years.
With the specified utilization rates for each year, the ROI for each scenario is as follows:
Scenario 1 (30 kW charger): 127.65%
Scenario 2 (60 kW charger): 159.21%
Scenario 3 (150 kW charger): 211.05%

With the specified utilization rates for each year, the 150-kW high-capacity charger still provides the highest return on investment at 211.05%, outperforming the 30-kW charger at 127.65%, and 60-kW charger at 159.21%. This demonstrates that investing in high-capacity DC rapid chargers offers greater financial benefits for potential customers, even with varying utilization rates over the years.

Conclusion:
Investing in high-capacity DC rapid chargers is a smart financial decision for businesses looking to enter the EV charging market. With the potential for higher returns on investment and the ability to meet the growing demand for fast-charging options, it’s a future-proof solution that will benefit both your customers and your bottom line. Don’t miss out on the opportunity to capitalize on the booming EV market – choose high-capacity DC rapid chargers to maximize your profits and stay ahead of the competition.

Enter the 200kW Freewire Option:
In this case study, we expanded our exploration of various scenarios for investing in EV charging DC Rapid Chargers infrastructure by including a fourth scenario with a 200-kW charger. We analyzed the financial benefits of chargers with power levels of 30 kW, 60 kW, 150 kW, and 200 kW. The same factors, such as different utilization rates and growth in demand, were considered to determine which charging capacity offers the greatest financial benefits. The costs for each scenario included the average installed charger’s price, a 5-year maintenance package, data, and monitoring. Electricity resale price was assumed at $0.45 per kWh, while the cost price was at $0.11 per kWh.

The charger costs are as follows:

Scenario 1 (30 kW charger): $60,000
Scenario 2 (60 kW charger): $120,000
Scenario 3 (150 kW charger): $250,000
Scenario 4 (200 kW FreeWire Boost 200 DC Supercharger): $347,000
Utilization rates and other assumptions remain the same as in the original case study.

Scenario 4 (200 kW FreeWire Boost 200 DC Supercharger):
Year 1 profit: $1,632.00 * 350 days * 0.15 = $85,680
Year 2 profit: $1,632.00 * 350 days * 0.28 = $159,552
Year 3 profit: $1,632.00 * 350 days * 0.39 = $221,788
Year 4 profit: $1,632.00 * 350 days * 0.45 = $256,860
Year 5 profit: $1,632.00 * 350 days * 0.55 = $312,840
5-year profit = $85,680 + $159,552 + $221,788 + $256,860 + $312,840 = $1,036,720

Now, let’s calculate the ROI for Scenario 4 with the specified utilization rates:
Scenario 4 (200 kW FreeWire Boost 200 DC Supercharger): ~Estimated lease payment of $6,200.00 per month @ 60 months.
Total cost = $347,000
5-year profit = $1,036,720
ROI = ($1,036,720 – $347,000) / $347,000 * 100 = 198.82% – Simple Payback is 3.22 years.

With the specified utilization rates for each year, the ROI for each scenario is as follows:
Scenario 1 (30 kW charger): 127.65%
Scenario 2 (60 kW charger): 159.21%
Scenario 3 (150 kW charger): 211.05%
Scenario 4 (200 kW FreeWire Boost 200 DC Supercharger): 198.82%

In this expanded case study, the 150-kW high-capacity charger still provides the highest return on investment at 211.05%, followed by the 200-kW FreeWire Boost 200 DC Supercharger at 198.82%. The 30-kW and 60-kW chargers have lower ROIs at 127.65% and 159.21%, respectively. This further demonstrates that investing in high-capacity DC rapid chargers offers greater financial benefits for potential customers, even with varying utilization rates over the years.

Conclusion:
Investing in high-capacity DC rapid chargers is a smart financial decision for businesses looking to enter the EV charging market. In this expanded analysis, the 150-kW charger still proves to be the most profitable option, closely followed by the 200-kW charger.

Barry Redman
CEO/Founder
NetZero Energy, LLC