DCFC Cost Components: Much More than Electricity!

Updated January 2025 

Coffee drinkers and EV drivers have something in common: a range of options for “fueling up.” Your favorite caffeinated beverage can be made at home, served at work, or purchased at a local coffee shop where the price of a steaming hot cappuccino helps cover the cost of equipment, rent, furniture, utilities, and staffing. 

Fast charging is comparable to the local coffee shop experience: the speed and convenience of having quality coffee brewed for you versus making it at home is similar to the higher power and faster charging speeds you’ll find on the EVgo network. Just like purchasing a latte from a café rather than brewing coffee at home, public fast charging operators incur costs that need to be recovered in the price of a charging session (e.g., high-power electrical equipment, large electricity costs, rent paid to site hosts, field technicians, call center operators, etc.). Whether drivers rely on public charging daily, weekly, or just on road trips, we're committed to making it easier to drive electric and ensure transparent pricing for everyone who plugs in to the EVgo network. 

How the economics of fast charging differ from L1 and L2 chargers 

The lower voltages required for L1 and L2 chargers, which are most commonly installed for home charging, demand less safety circuitry and upgrades than direct current fast charging (DCFC) stations and thus are lower cost. This lower cost has the tradeoff of longer charging times with L1 charging (120V outlet) requiring up to 20 hours for a full charge and L2 charging (240V outlet; same as for a household dryer) requiring 4-8 hours for a full charge.  

In contrast, a DCFC can fully charge an EV in 15-45 minutes by providing up to 1,000 volts and 500 or more amps (current). Providing this level of power involves a complex process of converting grid AC electricity to DC electricity and converting the electricity to the voltages and current required by the EV to charge its battery. In addition to intricate equipment design for DCFC, permitting and approvals from utilities, local government, and building jurisdictions make DCFC more complex than installations at L2 chargers. 

The costs involved in DCFC stations 

The cost components of DCFC stations fall into three major categories: equipment, development, and operations. Equipment includes not only the machinery of the charger itself, but also the equipment to make the charger functional and safe for public use. Development costs primarily include the time and labor required to move a site from concept to commissioning. Once a site is commissioned, the costs to operate include ongoing work to ensure the charger remains ready to do its job fast-charging EVs. 

On equipment, charger hardware represents the largest cost. With respect to development, most of the cost is usually the construction itself, with the remainder associated with planning and design in advance of the actual ‘build’ activities. Around half of the costs of operating a fast charger are electric utility bills. The remainder is distributed between other elements critical to ensuring reliable performance of this sophisticated infrastructure. 

1. Equipment Costs 

As EVs become capable of faster charging speeds, charger manufacturers are developing more powerful equipment to best serve drivers. But as power demand increases, additional complexities like liquid cooled cables are necessary to manage the heat generated by high power levels, generating increased costs. 

2. Development Costs 

Because labor = time, the length of time to complete a project is embedded in development costs. Current practice requires charging companies to secure permits, reviews, and approvals from utilities, local authorities, and state governments. These “soft costs” can account for a significant number of labor hours during a station’s development process.  

3. Operation Costs 

The single biggest ongoing cost for fast charging is the electricity provided from the chargers to the customer. Electricity costs fall into three primary categories: Fixed Charges (typically assessed as single monthly fee), Energy Charges (assessed on the number of kWh purchased from the utility), and Demand Charges (typically assessed on the peak demand/kW used by the charger in a month). Utilities that do not have commercial EV rates in place may skew the typical rate paid for electricity to a higher effective rate.

Many EV-focused rates assess the majority of charges on a volumetric ($/kWh) basis rather than demand basis to limit the impact of high demand charges. Utilities, regulators, and the charging industry can work together to adopt innovative rate designs specific to DCFC installations that encourage rather than inhibit deployment of public charging infrastructure to enable EV adoption. Significant progress has been made in this area with utilities across the country implementing EV-specific utility rates. For more information, read our blog on commercial rate design. 

But electricity is far from the only operational cost incurred by charge point operators. Other costs – such as operations & maintenance – ensure that EVgo can deliver on its commitment to best-in-class charging experiences for its customers. This commitment doesn’t stop at simply maintaining the equipment; it requires other costs like round-the-clock network monitoring, ongoing operation of a 24/7 call center, and real-time status updates in EVgo’s app to support drivers day or night.  

Pricing 

As a business principle, charging companies must set prices so that the cost they incur for developing, owning, and operating the infrastructure are covered by revenue received. With L1 and L2 charging equipment, development and operations costs are a fraction of those for DCFC stations, hence the prices to consumers for charging on L1 and L2 can be materially lower and still allow for cost recovery. 

With all public fast chargers, consumers are paying for the speed and convenience of charging outside of the home. And with EVgo, customers receive benefits that are exclusive to our network – including seamless charging with Autocharge+ and points toward charging credit with EVgo Rewards™. Customers can also take advantage of lower charging rates during Early Bird and Off-Peak hours, thanks to the time of use (TOU) component of kWh pricing.

Start charging with us today by downloading the EVgo app.