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Blink New High Charging Rates $$$

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Maybe the Blink business model just doesn't work. I'm not one to "support" them just because they are green - sorry, but I'm just not.

Don't be sorry. You passed the "fog a mirror" test. Their business model simply doesn't work. It's typical that when a new technology arrives, people try to fit it into the older model (filling station model) without thinking it through. Since most people don't stray that far from home, the vast majority of charging is done there where it is easy and at the prevailing electricity rates (national avg - $.0114/KWh). So, their first problem is they are vying for the crumbs. Their second problem is that they are suffering from an infrastructure that was built when people thought "build it and they will come" with little thought for location (like some one is actually going to charge for 15 minutes at a drug store). Actually, I think it was "we've got all this easy government money, let's spend it now". Either way, we know how that has turned out. Average utilization across the system is basically one charge every two days per charger. If they cut the number of chargers by half, that would increase utilization but not where it needs to be. And their third problem is the rate they have to charge to cover their overhead which is where people balk at paying ridiculous rates and seek out alternate charging sources.
 
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SDG&E peak rate is now over $.62 per Kwh. (Peak summer over baseline residental) It could cost the operator $53 to fill the 85kwh battery!

https://www.sdge.com/sites/default/files/regulatory/Total%20Rates%20Tables%208-1-2014%20Effective%20-%20Schedule%20DR-TOU_0.pdf

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Also the commercial side is not much better.... Check out the demand charges. 5 Tesla's charging at HPWC's trigger demand charges of $1000 per month plus basic service of $349 per month and an E rate of ~ $.13/Kwh.

I wonder what the demand charges at a supercharger are?

https://www.sdge.com/sites/default/files/regulatory/ALTOUSecondary.pdf
 
It seems like Blink would have a hedge against paying retail electric rates if they are in the electric business. Something that involves solar? Otherwise their business model comes down to simply installing 240 outlets
 
SDG&E peak rate is now over $.62 per Kwh. (Peak summer over baseline residental) It could cost the operator $53 to fill the 85kwh battery!

https://www.sdge.com/sites/default/files/regulatory/Total%20Rates%20Tables%208-1-2014%20Effective%20-%20Schedule%20DR-TOU_0.pdf

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Also the commercial side is not much better.... Check out the demand charges. 5 Tesla's charging at HPWC's trigger demand charges of $1000 per month plus basic service of $349 per month and an E rate of ~ $.13/Kwh.

I wonder what the demand charges at a supercharger are?

https://www.sdge.com/sites/default/files/regulatory/ALTOUSecondary.pdf

Wow! That is about $10/kW demand charge. An 8-stall Supercharger in San Diego will probably hit 500 kW peak demand most months. That is $5,000/month in demand charges alone. Now you see why Tesla is working on energy storage units. Energy storage will probably have a quicker payback than solar panels at Superchargers.
 
Wow! That is about $10/kW demand charge. An 8-stall Supercharger in San Diego will probably hit 500 kW peak demand most months. That is $5,000/month in demand charges alone. Now you see why Tesla is working on energy storage units. Energy storage will probably have a quicker payback than solar panels at Superchargers.

Don't forget the non-coincident demand charge listed there as well...The total is a lot higher than $10/kw...
 
Don't be sorry. You passed the "fog a mirror" test. Their business model simply doesn't work. It's typical that when a new technology arrives, people try to fit it into the older model (filling station model) without thinking it through. Since most people don't stray that far from home, the vast majority of charging is done there where it is easy and at the prevailing electricity rates (national avg - $.0114/KWh). So, their first problem is they are vying for the crumbs. Their second problem is that they are suffering from an infrastructure that was built when people thought "build it and they will come" with little thought for location (like some one is actually going to charge for 15 minutes at a drug store). Actually, I think it was "we've got all this easy government money, let's spend it now". Either way, we know how that has turned out. Average utilization across the system is basically one charge every two days per charger. If they cut the number of chargers by half, that would increase utilization but not where it needs to be. And their third problem is the rate they have to charge to cover their overhead which is where people balk at paying ridiculous rates and seek out alternate charging sources.


Good post, by the way.

To follow up with a few #'s, while the new-rates Blink charger in Chula Vista cost me $0.47 per kwh (above), I was charged $0.26 recently at the marina RV park just over the tracks; and FWIW they informed me that this was the new "San Diego" inflated rate. So I'll probably never use the Blink again. Even since my Leaf days I've been uncomfortable with the subsidy model of that company, and isn't it odd that someone recently bought them. I wonder what the story behind that is.

I'm glad that Musk was able to figure out that the electricity is the least important variable of the entire electric vehicle equation.

I can hardly wait until they start rolling out solar canopies over the supercharger sites. Are they waiting on the Solar City gigafactory?
 
I can hardly wait until they start rolling out solar canopies over the supercharger sites. Are they waiting on the Solar City gigafactory?

Solar canopies will help some small little bit, but when you realize that a whole residential house roof, say a large 8kW system...probably about as large a system as could be put over 10 charging stations, will only yield enough power in a day to provide a half-charge to one 85kWH battery, it really is mostly a "status" thing. It comes down to how Tesla pays for power as to whether it's even worth doing.
 
Don't be sorry. You passed the "fog a mirror" test. Their business model simply doesn't work.

The business model which works appears to be to provide charging "free with purchase" at restaurants, hotels, and other shops, and to charge everyone else for parking (at whatever parking rates are typical locally). This is what Sun Country Highway did... and it works.

Chargepoint's business model is no good either, but Blink was always the most expensive by far; people were already preferentially avoiding them two years ago. Raising rates... makes no sense. The question is what will happen to all the stations: if I were the CEO I'd be trying to flog them off to local businesses, but it's a question of who controls the associated parking spaces.

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Solar canopies will help some small little bit, but when you realize that a whole residential house roof, say a large 8kW system...probably about as large a system as could be put over 10 charging stations, will only yield enough power in a day to provide a half-charge to one 85kWH battery, it really is mostly a "status" thing. It comes down to how Tesla pays for power as to whether it's even worth doing.

The Supercharger stations will have large batteries as buffers to avoid peak usage charges. The solar panels... well, they're going to be cheaper than grid power in California, but probably not in Illinois.
 
The stations are not necessarily owned by Blink, so the site owner probably doesn't want to pay to have the stations repaired.

Still, charging stations should be designed to last at least 5 years without failure. 10 years would be better.
 
Here in Las Vegas we have a local gasoline chain named Terrible Herbst. They have been busily installing Level 2 chargers that are also quite pricey. I suspect they are laboring under the business model that you pump electricity just like you pump gasoline. In fact, they even call their charging stations "pumps". I'm not opposed to their initiative, but my great fear is that, like most business models, they now begin to use their clout to pressure our state legislators to ban "free" electricity like the Nevada Electric Highway:

Nevada Electric Highway | NV Energy

and programs intiated by Nevada Energy that provide free charging stations and cheap off-peak charging at home.

If companies can't turn a profit by using the old business model they will most certainly look for a way to legislate profit.