Why are so many EV chargers broken?

Introduction

I've heard that 40% of the EV chargers on the market are broken or unresponsive. It’s been said that people don’t have range anxiety they have charging anxiety. There's nothing worse than running low on battery and pulling up to an EV charging station in dire need of power and realizing the EV chargers aren’t working. At my local grocery store, which I visit about once a week, there are two Swtch EV chargers that were installed over a year ago. Every single time I drive by, I see yellow tape wrapped around them, indicating they're "unavailable". This has been the case for over a year. Why is this so?

Why would they spend all this money to install these EV chargers and then let them sit there, broken, for 12 months? Whose fault is this? Did they purchase faulty chargers? Is there a problem with the power source? Are they not staying connected to the network? These are all questions we'll explore today.

Reliability

As I mentioned in another post, there's a big difference between an EV charger being slow and the charger completely not working. It is rare for the physical charger itself to be completely broken. If so, it’s likely due to the quality of the charger, somebody vandalizing the charger, or it being installed incorrectly. The most common issues with EV chargers seem to be unresponsive screens, charge initiation failures, network failures, or broken connectors.

Difficulty Staying Connected to the Network

The primary reason EV chargers are unavailable is the difficulty in maintaining the EV charger's network connection. More than half of the non-functioning chargers are due to their inability to stay connected to the network (or internet). This is the most common cause of EV charger unreliability in public spaces.

Ways to Connect to the Network

There are a few ways that EV Chargers can be connected to the network. In the early days, most EV chargers were connected to the network via Wi-Fi. Given the volatility of Wi-Fi, you can probably understand the unreliability. Cellular SIM cards, which are more reliable than Wi-Fi, are gaining popularity.

To expand on the paragraph above, there are four main ways of connecting EV Chargers to the internet: Wi-Fi, Cellular, Hard-Wired Ethernet, and Satellite. Each method has its own pros and cons, and not all EV Chargers support every method. Satellite is pretty uncommon and expensive, so let's briefly explore the first three.

Wi-Fi

Wi-Fi is often used for connecting EV Chargers to the internet in above-ground and underground parkades. Indoors, the range is about 65 feet, and outdoors, it can reach up to 500 feet. The pros are that the installation is fairly simple and low cost. The cons are that the signal may not reach the entire charging area, and walls and pillars can obstruct the signal.

Cellular

A cellular network (or mobile network) has a stronger wireless radio signal than Wi-Fi. EV chargers that use cellular networks typically use SIM cards, just like cell phones. SIM card connections are quite reliable, especially for outdoor charging stations and specifically Level 3 chargers. The major downside is that they're not as effective in underground parkades because the cellular network signal has a hard time penetrating through concrete walls. Another drawback is the annual or monthly cellular network fee.

Hard-wired Ethernet

A hard-wired Ethernet connection involves running Ethernet cables to each EV charger. It sounds expensive, but if the electrician is already running the cables, they may as well include the Ethernet connections too. Hard-wired Ethernet is usually the most reliable data connection for EV chargers. They're not affected by concrete walls or vehicles blocking radio signals, so they're usually pretty solid.

Why won’t the EV Charging companies fix the broken chargers?

Before we delve into the reasons behind the number of broken chargers on the market, we first need to understand the different ways EV charging companies operate their businesses. The first business model we'll discuss is the original service offered when the EV Charging market originated. Not all companies operate this way, and the market is evolving, but here are a few reasons why we have so many dysfunctional chargers in the marketplace.

Reselling the Chargers

The original EV charging companies made their money from selling physical chargers. The idea, like many businesses, was that the more you sell, the more money you make. They would buy chargers from manufacturers in the States or overseas, put their logo on the chargers, and resell them for a profit. It's pretty simple - find a client who needs EV chargers and make a sale.

Networking Fee

Business want a revenue stream they can rely on, especially in a newly emerging market. It's always good to have recurring revenue to depend on for long-term sustainability. Due to this, these companies introduced something called a networking fee. Level 2 EV Chargers must be connected to the internet for many reasons. This means there is software involved, most commonly understood as being connected to the app.

The App

Now, it is more technical than just an "app" with aspects such as a network management system and load sharing, but we'll keep it high level and just refer to the software as the "app". Being connected to an EV charging company's app/network isn't free. This is where the recurring revenue for them kicks in. In order for your new chargers to be connected to their app, you'll need to pay a networking fee each month - per charger. This may be $25 per month for as long as you have the chargers installed. This fee varies, and if you're interested, I went into more detail in another post here.

Maintenance and Warranty

But what happens after the chargers are installed? Like any equipment, there is always a risk of complications or malfunctions. Whose responsibility is it to fix the chargers if they're not working?

The EV charging company has already made their money from selling you the EV chargers, and they're going to continue making money from the networking fee. So why would they care if the charger is working or not? In their eyes, that's your responsibility to call an electrician and figure it out. This is where the finger-pointing begins.

Call an Electrician

Since these EV charging companies don't earn any money from the revenue generated by the chargers, they don't have a vested interest in ensuring the chargers are operating correctly. They'll inform the site host if the EV Chargers are down, and it's up to the site host to authorize and pay for a repair. The overall reliability of the network isn't their top priority because they've already made their money from selling the chargers. They would prefer their chargers to be reliable, but they aren't going to spend their own money to fix a station that a site host isn't maintaining.

Revenue Sharing is Different

Here's another way EV Charging companies can make money: through a process called revenue sharing. If the EV Charging company that supplied the chargers also receives a portion of the profit generated by the chargers, they certainly have an incentive to ensure the chargers are working properly. You're typically in control of setting the charging fee, but the EV charging company will take a percentage. Remember, you’re still responsible for covering the electricity costs and will still be required to pay a networking fee.

What percentage do they take?

“Due to the many factors, it’s rather difficult to state a concrete number. Generally, one can say that between 15% and 30% of the charging fee remains with the charging point operator (CPO), i.e., the profit margin. So an investment in a charging station should pay off on average in about five years.” This was referenced by a company out of Europe. The return on investment would be much lower in Canada because our energy is substantially cheaper.

Benefits to Revenue Sharing

Revenue sharing enables the supplier and host to be more aligned in ensuring the success of the chargers. The EV Charging company will want to make sure the chargers are working because if they’re down, no more money will be coming in.

They Want to Rent My Parking Stalls?

Several companies may fund the entire project and sometimes even provide a monthly lease payment to install their chargers on your property. If you own a business with a suitable location for EV chargers, some companies might offer a monthly lease payment to install their chargers there. However, keep in mind, they will likely collect all the revenue generated from the EV chargers as well as the Carbon Credits.

Essentially, they are willing to pay a monthly fee to keep their chargers on your property, hoping that the revenue generated from the chargers will yield a significant profit. One thing is certain: if the EV company funds the project, they will want to protect their investment and ensure the chargers are operating at full capacity.

Conclusion

The bottom line is the state of EV chargers in the public market is in disarray. Understanding the factors that are contributing to this should shed light on the issue and provide potential solutions. As the EV market continues to evolve, technology will advance and reliability will increase. Suppliers and hosts will become more aligned as time goes on, improving the charging experience for everyone. This is a pretty important issue, so until it's resolved, let's hope for the best and continue to make incremental improvements every day.

I'm here if you have questions or are currently experiencing a similar issue. I can help provide some guidance.

Cheerio,

Strong Energy