Electric vehicles (EVs) allow businesses to reduce operational costs while slashing their carbon footprints. Company vehicles for employees are a popular perk, but the 1.7 million EVs in the U.S. raise a new issue: How can companies fairly reimburse employees who charge their EVs at home?

But this is easier said than done. As the EV revolution grows, this will become a more prominent issue in the years ahead.

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Home vs. Public EV Charging – A Comparison 

Fleets can slash their costs by switching from internal combustion engine (ICE) vehicles to EVs. But did you know the savings are larger when employees charge their vehicles at home? 

The U.S. enjoys cheap electricity rates, with the Bureau of Labor Statistics reporting the average price of electricity currently at $0.168 per kilowatt-hour. What does this look like in practical terms?

·  Tesla Model 3 (60-kilowatt-hours) - $10.08

·  Volvo XC40 Recharge (78-kilowatt-hours) – $13.10

·  Ford F-150 Lightning (131-kilowatt-hours) – $22.00

Public charging rates are substantially higher, with some states charging up to $0.60 per kilowatt-hour to hook an EV up to a public charger. Let’s compare a Level 2 charger in California, which charges around $0.30 per kilowatt-hour: 

·  Tesla Model 3 (60-kilowatt-hours) - $18.00

·  Volvo XC40 Recharge (78-kilowatt-hours) – $23.40

·  Ford F-150 Lightning (131-kilowatt-hours) – $39.30

Even with the price hikes of public chargers, EVs remain substantially cheaper than a tank of gas for an ICE vehicle. Despite that, home charging can save substantially more for fleets over the years.

It’s also worth mentioning companies can make even greater savings by promoting at-home charging because it reduces downtime during working hours. In short, at-home charging is the way forward, with an average electric car costing around $60 per month to charge at home.

Regulatory Concerns for Reimbursement

No federal law requires employers to reimburse workers for charging company EVs at home. However, some states have recognized the benefits of promoting at-home charging and have enacted laws to force employee reimbursements. These states include California, Massachusetts, and Illinois.

Whether companies are legally obligated to provide reimbursement, it’s only fair that employees are compensated for using their home electricity supply. Failure to do so could have significant consequences for businesses, including legal, financial, and reputational.

Generally, if companies reimburse employees for gas, they should do the same for electricity.

How Fleet Managers Can Calculate Employee Reimbursements 

Calculating employee reimbursements can take time and effort. However, as EVs become more common, solutions are emerging to combat this problem and prevent a buildup of extra paperwork. Typically, three options exist for fleet managers.

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1. Meter/Submeter

A dedicated meter/submeter can measure electricity consumption while EVs are charging. The meter must be connected to a dedicated EV charging station or with a smart home monitoring system.

These systems can provide accurate readings but have two glaring downsides. The numbers can be thrown off if non-fleet vehicles are connected or the meter isn’t connected to an EV-only circuit. This leaves companies unable to tell if the EV is a company EV or even a home appliance.

2. Smart Charging Station

Smart charging stations can be connected to a network to generate accurate data for employee reimbursements. Companies may also be able to create an account with a network provider that allows usage data to be sent directly to them.

However, this costly option can cost several thousand dollars, depending on the installation and features. In addition, incompatibility issues can become a factor if employees live in a condominium.

3. Telematics

Vehicle telematics monitors each vehicle's electricity use rather than the charger’s. This allows companies to track the electricity usage while the vehicle is parked and charged at an employee’s home.

The benefits include companies having no concerns about charging station compatibility, network compatibility, or non-company EVs being charged in the same location or outlet. Products like Bluedot make monitoring vehicles in this way simple.

Simplifying Employee EV Reimbursement

Encouraging employees to charge EVs at home can result in massive savings for companies regarding electricity costs and reducing fleet downtime. In many cases, it’s also more convenient for employees.

Innovative telematics solutions, such as Bluedot, offer an easy way to track electricity usage by monitoring vehicles instead of chargers. This is also the most affordable option, allowing for easy scaling and removing the need to install physical infrastructure.

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If you are interested in learning how you can effectively track and automatically reimburse home charging, connect with fleet@thebluedot.co.

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