What is the impact of the capacity charge on EV chargers?

As of 1 January 2023, the capacity charge has come into effect. That means that private customers and smaller companies (SMEs) will need to monitor their electricity consumption more closely to prevent huge bills. And that will impact the way we use EV home chargers.

But what does that mean, exactly? Will you use your charger less? And does it matter if you have a ‘smart’ or ‘dumb’ charging point?

In this blog post, we’ll tell you everything you need to know about the impact of the capacity charge on how you use your EV charging point.

 

What is the capacity charge?

It’s been on the news several times, but we’re happy to jog your memory.

As of 1 January 2023, our electricity bill will get a makeover. Part of our bill won’t be calculated based on our total electricity consumption anymore, but based on our ‘peak consumption’ – the moment(s) when we use the highest amount of energy. This peak consumption will determine a large part of our energy prices.

 

Digital or analogue meter

The capacity charges will be calculated differently for private/professional customers with digital meters than for those with analogue meters.

If you have a digital meter, it will register your average electricity usage every fifteen minutes. The fifteen minutes in which you use the largest amount of electricity will determine your capacity charge for the month. 

If you have an analogue meter, you will pay a fee that consists of: 

• a flat-rate part that matches a peak consumption of 2.5 kW (the average of a two-person household)
• an additional part based on the amount of energy you actually use.

 

How your EV charger can impact your capacity charge

How you monitor your energy usage will largely determine your capacity charges. And, luckily, spreading out the amount of energy you use isn’t that difficult. 

A simple solution is to not use top consumers, like your washing machine, dryer, hub, or charging point, at the same time.

Another solution is to buy ‘smart’ appliances. With a control system, they can automatically regulate their consumption according to the rest of your home. But when it comes to home chargers, not every charger is ‘smart’ enough to do this.

 

The difference between smart and dumb EV chargers

There are two kinds of chargers. 

Smart EV home chargers include software and can be connected to a digital control system. This allows smart chargers to “communicate” with other appliances when charging and regulate the consumption rate of those appliances based on a predetermined peak consumption rate. 

Other than that, smart chargers also give insight into energy usage and charging costs and they can complete financial transactions. That’s very interesting for companies and their employees. For instance, it allows employees to register their charging costs and request reimbursements for at-home charging time.

Dumb charging points work with a plug-and-charge principle: you plug in your electric car and it starts charging. This kind of charger doesn’t have any software and can therefore not offer any of the benefits smart EV chargers can. 

• No connection to a control system
• No automatic consumption rate regulation
• No insight into energy consumption and charging costs
• No financial transactions

 

How to regulate your energy consumption with your EV charger

A smart EV charging point can help you regulate your energy consumption more easily than a dumb charger can. But that doesn’t mean you cannot regulate your energy consumption with a dumb charger at all.

 

Smart vs dumb EV charger

Regulating your energy consumption with a smart charger

If you have a smart EV charger, it will automatically align its energy consumption with the rest of your home when you charge your electric car. Therefore, you won’t need to constantly monitor your energy consumption. 

In addition, you can set a timer for when your charger needs to start charging. For instance, when the rest of your home reaches a certain energy consumption rate, or at a certain time. A general rule of thumb is to charge at night or at times when none of your other large appliances is using energy.

Thinking of installing a smart EV charging point? You’ll need a digital meter, as well.

 

How to regulate your energy consumption with a dumb charger

If you have a dumb EV charger, your electric car will charge from the moment you plug in the charging cable. Your charger will consistently feed your car the same (fixed) power and cannot regulate energy consumption.

Regulating and monitoring your energy consumption is a must. You can (also) do that by charging your electric car at night or at times when none of your other appliances is on. 

Are you considering installing a dumb EV charging point? Technically, you can keep your analogue meter (if you have one). But we recommend getting a digital meter. Otherwise, you’ll be paying a flat-rate fee every month and you won’t be able to save, even if you are regulating your energy consumption.

 

Private vs corporate 

Are you a private consumer with a private electric car? Then you’ll be able to regulate your energy usage with both a dumb and a smart EV charger. But you will need a digital meter.

As a company, you are better off with smart EV chargers, both for your employees and your car parks. With smart chargers, you can monitor how often your employees are charging and you can easily complete the financial transactions associated with charging. In addition, you can allow clients to charge at your site and send them the corresponding bill.

Monitoring your peak consumption is a bit more difficult, even with smart chargers. If you already have electric cars in your fleet, it’s best to limit the charging speed of your EV chargers to decrease your peak consumption.

 

TIP: combine your charger with solar panels and an at-home battery

Trying to decrease your peak consumption and capacity rates even further? Then it could be wise to combine your charger(s) with solar panels and an at-home battery. 

After all, the capacity charge will only be calculated based on the energy you take from the grid. The usage of power you generate yourself is not included in your peak consumption. So, if you have solar panels and an at-home battery, you can bring down your peak consumption even further.

 

Smarter charging and driving with Alphabet

Are you looking to start driving electrically or trying to make your fleet more electric? Then Alphabet is the place to be.

Alphabet is your full-service mobility partner when it comes to driving electrically. We provide the most efficient and beneficial solution for you and your employees.

• Full-service operational leasing
• Installment and maintenance of charging infrastructure
• Fixed monthly fees
• Fixed monthly costs for repairs, maintenance and use

Ready to find out more? Discover all the benefits of electric leasing at Alphabet.