SMUD electric rates for EVs
Understanding commercial electricity rates: a key factor in EV adoption and total cost of ownership
Electrifying a fleet and installing electric vehicle charging stations can significantly impact your commercial electricity bills. For fleet operators, multifamily unit owners, workplace charging stakeholders and public charging stakeholders, choosing the correct electricity rate is essential. Here’s a guide on how commercial electricity rates affect EV adoption and how you can optimize your costs.
Using our Business EV Tool
SMUD's Business EV Tool is an invaluable resource. It can automatically show you the most cost-effective rates based on your proposed EV fleet and charger selection. By inputting your fleet and charging requirements, the tool calculates the applicable rates, helping you make informed decisions.
Importance of understanding your rate
Selecting the right electricity rate can greatly affect your bills and potentially save you a lot of money. Different rates are available based on your power usage and demand profile. Understanding these rates and how they apply to your specific needs is crucial for cost-effective EV fleet management.
Rate applicability based on load profile
Certain rates apply only to specific customers, depending on their power usage as shown by the customer’s load profile. The Business EV Tool also takes this into account, ensuring you are matched with the most suitable rate for your energy needs. This automatic calculation simplifies the process and ensures compliance with rate criteria.
Basics of rates and billing components
Commercial electricity rates are often structured with peak and off-peak demand components. Peak demand charges apply during periods of highest electricity use, typically during the day, while off-peak charges apply during lower demand periods, usually at night. Understanding these components helps in planning charging schedules to minimize costs.
SMUD offers two commercial rates, the Commercial & Industrial Time-of-Day rate and the Commercial EV Pilot rate program. Learn more about all SMUD business rates here.
Utilization factor
The Commercial EV Pilot rate program uses a concept known as the “utilization factor”, which SMUD calculates based on your load profile, or tabular representation of your annual energy usage. The utilization factor is a measure of how efficiently a customer uses their maximum demand capacity. It is calculated as the total monthly kWh divided by the product of the monthly maximum kW and the number of hours in the month. Higher utilization factors can lead to more favorable rates. For example, a SMUD customer with a utilization of less than 10% and maximum average monthly demand below 100 kw would be assigned the Commercial EV Pilot rate with Utilization <10%, ≤ 100 kW.
Understanding and selecting the appropriate commercial electricity rate is crucial for effective EV adoption and managing the total cost of ownership. By using our Business EV Tool and understanding rate structures, fleet operators, multifamily unit owners, workplace charging stakeholders and public charging stakeholders can optimize their electricity costs, ensuring a sustainable and cost-effective transition to electric vehicles.
