The Fleet Manager’s Guide to the Costliest Pitfalls of Home Charging Reimbursement

Home charging reimbursement comes with a range of pitfalls that can cost your business. Approximately 60% of fleets could save money by transitioning to electric vehicles, but managing your fleet when factoring in at-home charging raises logistical headaches fleet managers must overcome

Although it may seem simple, the nation’s complex utility plans and rates can soon make reimbursement a headache. Understanding these problems can enable you to discover solutions to overcome them.

Real Cost Reimbursement Logistics

Various options for employee reimbursement exist, but the most accurate, cost-effective option is real cost reimbursement. In other words, reimbursing employees for their actual electricity costs when charging a fleet vehicle.

With the average EV owner saving $18,000 over ten years, getting this wrong can put a massive dent into these margins. However, the problems with real cost reimbursement are managing real-time utility rates, ensuring you’re only reimbursing work-related expenses and the administrative work that comes with it.

But real cost reimbursement is the only authentic way of reimbursing employees without overspending.

Tiered Rate Plans

Tiered rate plans are all too common in the U.S. These plans mean consumers pay different rates depending on how much they use. This can change by hundreds of dollars from month to month, depending on when an employee charges their vehicle.

Overpay, and you’re wasting money, but underpay, and you’re risking a class action lawsuit.

Time of Use Plans

A similar but different issue is the time of use plan. Under these schemes, consumers are charged different rates based on the time of day. These are usually divided into off-peak and peak hours. Again, added up over a month, and the actual electricity cost can differ radically. 

Some companies opt for an average rate, but this doesn’t factor in if an employee charges solely at peak hours or off-peak hours, meaning you still have the overpaying vs. underpaying problem.

Fees and Credits

Another issue is the extra fees and tax credits that may come into play. Each one may receive a different treatment. Examples of these include:

·  Solar energy offsets

·  Government subsidies

·  Utility bill taxes and fees

For example, solar energy generated by employees is subtracted from the overall utility bill. If a company calculates its reimbursement on the total bill, the company benefits at the expense of its employees. Instead, the company must then neutralize any net metered energy production, which is another issue.

Conclusion: What’s the Answer?

Avoiding these pitfalls requires intricate calculations. While this has always been possible, it also requires entire teams to go through the numbers to determine the real cost reimbursement due.

Technology is the key, with advanced telematics providing real-time visibility into home charging activities. Crucially, fleet managers need a solution that offers a straightforward breakdown in real-time, and this technology already exists.

At Bluedot, our brand-new home charging reimbursement solution simplifies the process of accurately tracking home EV charging and supercharging reimbursement for employees. To learn more, check out Bluedot today.