Faster Charging = Cheaper Charging
We explore how speed of charging impacts cost of charging & various elements that influence the unit economics of an EV charging business.
CAC, LTV, ARR - there exist multiple metrics to measure the success of new-age internet businesses.
Likewise, the only 2 that matter for an EV charging business are:
The only way to win on both these metrics is by dramatically decreasing the time taken to charge an EV.
Curious to know how charging time is interlinked with energy throughput and unit cost of energy?
While faster charging involves a more expensive charger and a greater power infrastructure cost - it crucially unlocks the ability to charge a greater number of EVs (higher energy throughput) on the same piece of land. This exponentially reduces the unit cost of energy.
15 points for guessing who's the fastest.
If you’re curious, here’s a breakdown of the multiple factors that influence the unit economics of an EV charging business.
For the sake of simplicity we have assumed the battery size as 10 kWh.
We’ve also assumed equal utilization across chargers. Practically, it becomes easier to have higher utilization when you have shorter charging times as it’s easier to manage multiple vehicles queuing up at a station.
Note: the above figures are specific to Bengaluru, Karnataka as of May 2022.