Bluedot’s guide to home charging reimbursement

Introduction 

As electric vehicles (EVs) become an integral part of fleet operations, effectively managing home charging is paramount to optimizing costs, ensuring reliability, and enhancing the driver experience. Beyond simply plugging in a vehicle, fleets must consider the nuances of equipment selection, safe installation, routine maintenance, and liability. Many fleet managers are recognizing that a streamlined home charging setup is key to fleet electrification success, yet only a fraction have tapped into best practices or established efficient reimbursement workflows.

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To bridge this gap, we created the Home Charging Reimbursement Guide to empower fleet leaders with actionable steps for navigating home charging. Our guide offers insights backed by real-world use cases and feedback from thousands of fleet partners across sectors. As the EV landscape continues to evolve, we’ll keep updating this resource to ensure it reflects the latest learnings from our partners and users. Whether you're new to EVs or scaling an existing fleet, this guide is designed to help you unlock the full potential of home charging.

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Let’s get started – and remember, if there’s anything you’d like us to cover, reach out at fleet@thebluedot.co

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Home Charging Equipment (Installation, Maintenance, and Safety) 

Choosing Between Smart and Dummy Chargers

When deciding on home charging for fleet EVs, fleet managers need to weigh the pros and cons of investing in smart chargers versus opting for simpler, non-connected chargers (often called "dummy chargers"). 

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Smart Chargers: While smart chargers come with a higher initial cost, they offer long-term benefits such as real-time monitoring, scheduled charging, and energy optimization. These features can save on electricity costs and ensure vehicles are charged and ready when needed, adding convenience and efficiency.

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Dummy Chargers: Alternatively, an existing plug or non-connected charger may be more affordable. The charger that comes with an EV is often a dummy charger, and a fleet can leverage this to test whether this type of home charging will work for their organization. 

However, this option may have limitations when it comes to managing and monitoring the charging process. If there is no vehicle connection via software or telematics device and there is a desire to track charging activities, the overall consensus is to invest in a smart charger.

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Installation Considerations

Installing a dedicated EV charger is more involved than simply plugging in a device; it often requires a licensed electrician to assess the home's electrical capacity and make necessary upgrades. This ensures that the charging station operates safely and doesn't overload the electrical system. Fleet managers must also consider the scenario in which an employee moves or leaves the company. In these cases, there should be a plan to transfer, remove, or leave the installed equipment behind, depending on the situation.

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Regular Maintenance Checks

Home charging equipment involves powerful electrical devices, and safety is of utmost importance. Fleet managers should ensure that the equipment is compliant with safety standards and that employees understand the proper usage procedures. If the equipment is installed by their organization, this becomes even more important. Conducting regular maintenance checks is crucial to prevent potential issues like electrical fires or damage to vehicles.

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Liability and Insurance Requirements

Liability is an important factor to address before installing home chargers. If an issue arises, such as a fire caused by the charger, it must be clear who holds responsibility. Employees using home chargers should carry sufficient homeowner’s insurance that includes property replacement coverage and liability insurance with a minimum coverage of $100,000. This ensures that both the company and the employee are protected in the event of an incident.

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Verification of liability insurance should be part of the employee onboarding checklist, and employees residing in single-family homes should have coverage for property replacement costs, as well as liability insurance to cover any potential damages.

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Equipment and Vehicle Transfer

When an employee leaves the company or an EV is returned, it is important to have clear procedures regarding charging equipment. Charging cords should always be returned with the vehicle, and if a charging station has been installed, the fleet manager should arrange for its removal at the company’s expense. Any electrical infrastructure, such as circuits or outlets installed in the home, can remain in place, depending on the agreement.

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By carefully managing equipment installation, maintenance, liability, and transfer processes, fleet managers can ensure the safe and efficient use of home charging for their electric vehicle fleets.

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Key questions to consider include:

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• What level of control and monitoring is needed?
• Do you need remote management capabilities?
• Is integration with other systems important?
• Will the long-term cost savings from smart charger features offset the initial investment?
• Are there incentives or rebates available for smart chargers in your area?
• What are the data security implications of using networked smart chargers?
• Who is liable if an incident occurs with a smart charger?
• How will you mitigate the risk of non-fleet vehicles using company-provided smart chargers?
• Can you achieve the desired level of control and data insights using vehicle-level scheduling and reimbursement software?
• Do any employees already have Level 2 chargers installed at their homes?
• What are the typical charging needs of your fleet drivers?
• Do drivers have strong preferences for smart charger features?
• Is the employee's home electrical system capable of supporting a Level 1 or Level 2 charger?
• Does the garage or parking area have accessible outlets that meet the charging requirements?
• What is the distance between the electrical panel and the proposed charger location?
• Will the installation be performed by a licensed electrician with experience in EV charging equipment installation?
• Does the installation comply with local electrical codes and regulations, as well as the company's safety standards?
• Who is responsible for the ongoing maintenance of the charging equipment? Will the company cover maintenance costs, or is the employee responsible?
• Will there be a schedule for regular inspections of the charging equipment to ensure its safe and efficient operation?
• What is the process for troubleshooting issues and handling repairs of the charging equipment?
• Do employees have adequate homeowner's insurance to cover potential damages or liabilities related to the charging equipment?
• What are the company's and the employee's responsibilities in the event of an incident, such as a fire or damage caused by the charging equipment?
• If using smart chargers, how will data security and privacy concerns be addressed?
• What is the process for handling the charging equipment when an employee leaves the company?
• What happens to the charging equipment when a fleet EV is returned?

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Tracking Energy Consumption and Costs

When it comes to tracking the energy consumption and costs associated with home charging for fleet EVs, fleet managers have several approaches to choose from. Each method comes with its own set of benefits and challenges, depending on the level of accuracy and ease of use desired.

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Exact kWh Delivered and Real-Time kWh Cost

One of the most precise methods involves calculating based on the exact kWh delivered and the real-time kWh cost from the employee's utility provider. This approach ensures that every penny is accounted for, reflecting the true energy usage of the vehicle. However, it requires direct access to utility data and the vehicle’s telematics.

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Bluedot offers fleet managers the ability to pull data directly from utility providers and the vehicle’s telematics, giving a highly accurate picture of home charging energy consumption. With this data at their fingertips, fleet managers can see exactly how much electricity was used and at what cost, allowing for fair and precise reimbursement. This level of detailed reporting can save fleet managers significant time—up to 8 hours a week—by eliminating the need for manual data entry and logging.

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Exact kWh Delivered and Average Rate

Some fleet managers might opt for a simpler approach, like calculating the cost based on the kWh delivered multiplied by a general utility rate. While this method is less accurate, it’s easier to manage, though it does require regular updates to ensure the utility rates are current. Others might use a telematics provider to estimate energy consumption using average utility rates and geofencing to track where the charging occurs. This method is commonly used because it’s less complicated and readily available from providers. Companies often provide reimbursements based on state-level averages as well.

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Flat Stipend

Another option is to pay employees a flat stipend for their home charging, but this is often the least accurate method, potentially leading to over- or under-reimbursement. While it's a simple approach and requires little administrative effort, it doesn’t reflect actual energy usage, making it less fair for both the company and the employees. Additionally, stipends are taxed as income, meaning a significant portion is lost to taxes, reducing the program's effectiveness. Since stipends are not linked to actual home charging, they offer little incentive for employees to plug in at home, potentially leading them to rely on more costly public or on-site depot charging.

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Per-Mile Based Reimbursement

Another approach some fleet managers consider is per-mile reimbursement. This method reimburses employees based on the number of miles driven, with the assumption that each mile has a specific energy cost. While this approach can simplify the reimbursement process, especially when exact kWh data isn’t available, it has its own set of potential issues.

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One key challenge with per-mile reimbursement is the discrepancy that can arise due to regenerative braking. Regenerative braking allows the vehicle to recover some energy while slowing down, which effectively reduces the total energy consumed per mile. If a vehicle regenerates a significant amount of energy, the actual energy cost per mile decreases. However, per-mile reimbursement might not account for this reduction, leading to potential over-reimbursement. This can create inconsistencies in the reimbursement process, making it less accurate compared to methods that use real-time kWh data.

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Recommended kWh Tracking Methods

Some companies turn to dedicated "smart chargers" to differentiate vehicle charging, but these devices are prone to misuse (since they can be used by non-work vehicles) and may increase liability risks if owned and maintained by the company. As a solution, telematics devices from companies like GEOTAB and Samsara log all EV charging events and the total kWh charged per session, allowing administrators to accurately track the electricity used for each fleet vehicle, regardless of the charger type, and without risk of fraud. This is the kWh tracking method recommended by the US Department of Energy.

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Platforms like Bluedot simplify the process of tracking energy consumption by connecting directly to vehicle telematics and utility providers, ensuring fleet managers have reliable data for accurate and fair reimbursements without the hassle of manual data entry or the risk of inaccuracies. Drivers can also view their charging details and reimbursements daily through the Bluedot driver app.

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By carefully managing equipment installation, maintenance, liability, transfer processes, and energy consumption tracking, fleet managers can ensure the safe, efficient, and cost-effective use of home charging for their electric vehicle fleets.

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Key questions to consider include:

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• What method will be used to calculate reimbursements for home charging costs? 
• If using per-mile reimbursement, how will the company account for energy savings from regenerative braking? 
• How will the company collect data on the amount of electricity used for charging company EVs at home? 
• What resources and tools are available to simplify the tracking and reimbursement process?
• What training and support will be provided to employees to ensure they understand the home charging policy and reimbursement process? 
• How will the company ensure the accuracy and integrity of the data collected?
• How will the data be stored and managed? 
• How will the company account for variations in electricity rates, such as tiered rates and time-of-use plans? 
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Expense and Reimbursement Processes

Direct Utility Bill Payment

Some fleets have drivers submit their home utility bills to fleet managers, who then manually calculate the portion of the bill related to home charging and determine the reimbursement total. Even when utility rate estimates and vehicle telematics are automatically submitted to fleet managers, the data is often stored in multiple places, requiring manual effort to find, sort, and export that data.

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With Bluedot, utility consumption from a driver’s home charging sessions is automatically submitted to the fleet manager, requiring no effort from drivers. And for managers, the process is nearly as simple. They only need to approve reimbursements, which Bluedot automatically calculates based on the submitted utility data. This streamlined process makes reimbursement straightforward and efficient.

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Automatic Data Submission

Utility rate and vehicle consumption data from home charging is automatically submitted to the fleet manager via Bluedot, requiring no action from drivers.

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Reimbursement Approval

Fleet managers are responsible for approving reimbursements, which are automatically calculated by Bluedot based on the submitted utility data.

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Fraud Prevention

Without access to vehicle telematics, it is extremely difficult to ensure that the energy consumption for which fleet managers are reimbursing is based solely on the fleet’s vehicles. 

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Monitoring Charging Activities

Drivers' charging activities are monitored on a per-vehicle basis through their telematics providers. Inaccurate or dishonest use of the home charging reimbursement program will result in a review of the employee’s participation in the fleet program.

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Key questions to consider include:

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• What is the preferred method for tracking energy consumption and cost?
• How will the reimbursement process be managed?
• What measures are in place to prevent fraud?

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Environmental Impact and Charging Schedule

Encouraging Off-Peak Charging

Most fleet managers we've worked with don’t impose strict rules about charging during on-peak or off-peak hours, but there’s a growing awareness of the environmental and cost benefits of off-peak charging. Encouraging employees to charge their EVs during off-peak hours can make a significant difference. Many modern home chargers, as well as the vehicles themselves, offer scheduling features that make it easy for drivers to set their charging to occur during these more environmentally friendly and cost-effective times. By taking advantage of off-peak hours, employees can help reduce the overall carbon footprint of their EV usage and save on electricity costs—benefits that align well with broader company sustainability goals.

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Scheduled Charging Features

Employees should leverage the scheduling capabilities of both the vehicle and the charging station to automate off-peak charging, reducing the environmental impact and operational costs. Drivers can also track their reimbursement and charging details through HR expense management platforms or receive them as direct deposits.

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Solar Charging Considerations

Fleet managers should also consider the use of solar energy for home charging where possible. This can further reduce the carbon footprint of EV charging and provide additional cost savings. For more information, refer to the Fleet Manager's Guide to Common and Costly Home Charging Calculation Errors.

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Key questions to consider include:

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• How can the company leverage the scheduling capabilities of EVs and home chargers to encourage off-peak charging, thereby minimizing environmental impact as well as costs?
• Should the company consider incentivizing or providing resources for the installation of solar panels or other renewable energy sources at employees' homes? 
• How will the company measure and report the environmental benefits of its EV fleet, including reduced emissions from home charging? 
• Should the company set specific charging time restrictions for employees, such as prohibiting charging during peak hours? 
• How will the company ensure that employees have sufficient time to charge their vehicles without disrupting their work schedules? 

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Support and Resources

Providing support and resources is essential to ensuring that employees are comfortable and knowledgeable about their home charging setups. This can include everything from training documents on how to use the charging equipment to guidance on maintaining privacy when sharing data for reimbursement purposes. Clear, accessible training materials can make a big difference in helping employees get the most out of their home chargers, and addressing privacy concerns upfront can build trust and compliance. Bluedot simplifies this process by offering comprehensive support and easy-to-follow documentation, ensuring that employees have everything they need at their fingertips.

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Training Documents

Prepare clear, concise training materials that cover the basics of using home chargers, scheduling charging times, and troubleshooting common issues.

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Privacy Concerns

Address any privacy concerns related to data sharing, especially around the information collected for reimbursement purposes. Ensure that employees understand what data is collected, how it’s used, and how their privacy is protected.

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Support Channels

• What types of training materials should be developed to help employees understand how to use their home charging equipment effectively and safely? 
• What are the best channels for delivering training and support to employees? 
• What information should be included in the training materials to address employees' privacy concerns regarding data sharing for reimbursement? 
• How can the company provide guidance on maximizing energy efficiency and minimizing costs when charging at home? 
• What support resources should be made available to employees who experience technical difficulties or have questions about their home charging setup?
• Should the company consider offering incentives or resources to encourage the adoption of solar panels or other renewable energy sources for home charging?