In short: the purchase price of a depot charger is only part of what it costs. Over its working life you also pay for installation, software, maintenance, electricity and the cost of chargers that are out of action. Compare options on total cost of ownership over the same period: the number of years you expect to keep the chargers. A more expensive charger with lower running costs and better service terms often works out cheaper.
Tenders are often scored on capital cost, because that is the number on the quote. The costs that arrive later, monthly software fees, call-out charges and vehicles that miss a shift, are harder to see. This article sets out a simple model you can use to compare offers fairly.
What goes into total cost of ownership?
| Cost | What to include |
|---|---|
| Hardware | Chargers, mounting, cables, any load management controller |
| Installation | Groundworks, ducting, cabling, switchgear, commissioning |
| Grid connection | Any upgrade or new connection, and the cost of waiting for it |
| Software | Back-office subscription per charger, set-up fees, data and SIM costs |
| Maintenance | Planned servicing, repairs, call-outs, spare parts |
| Electricity | Energy plus network charges, which depend on when you charge |
| Downtime | The cost of vehicles that cannot run, or of alternative charging |
| End of life | Replacement, removal and disposal |
| Grants | Deducted from capital cost, if you qualify |
Which costs do buyers most often miss?
- Software fees: a small monthly fee per charger adds up over many chargers and many years. Check whether it rises after an introductory period.
- Downtime: a charger that is down for a week can mean a van that cannot work. Put a value on that, even a rough one.
- Charging time of day: network charges are highest in the early evening; Drax explains that the red band usually runs from 4pm to 7pm. A system that can schedule charging later saves money every day.
- Exit costs: if the chargers only work with one supplier’s software, switching later may mean new hardware. Chargers that support OCPP avoid this; see OCPP explained.
A worked comparison
The figures below are illustrative assumptions for 20 AC depot chargers over eight years, to show the method. Replace them with the numbers from your quotes. Electricity is left out because both options deliver the same energy, but include it if one option can schedule charging more cheaply.
| Illustrative item | Option A: lower price | Option B: stronger service |
|---|---|---|
| Hardware and installation | £60,000 | £75,000 |
| Software per year | £4,800 | £3,600 |
| Maintenance per year | £3,000 | £4,500, with repair targets |
| Assumed downtime cost per year | £4,000 | £1,000 |
| Running costs over 8 years | £94,400 | £72,800 |
| Total over 8 years | £154,400 | £147,800 |
In this example, Option B costs £15,000 more upfront but about £6,600 less over eight years, mainly because of lower downtime and software costs. The downtime figure is the most uncertain, so test how the result changes if you halve or double it. If you would rather not own the chargers at all, compare these figures with charging-as-a-service offers.
How do you get reliable numbers?
- Ask every supplier to price the same items over the same period, using a template you provide. Our guide to writing a charger tender shows how.
- Ask for evidence of reliability, such as uptime data from similar sites, and contract for it; see charger uptime and service levels.
- Fix prices for software and maintenance for as long as possible, or cap annual increases.
- Use your own data for downtime cost: what does a missed shift cost in hire vehicles, overtime or lost work?
Where do grants fit?
Grants reduce capital cost, so they can make a cheaper-to-buy option look even better. Apply them after comparing running costs, not before. If you are planning a van, coach or HGV depot, our Depot Charging Scheme explainer sets out what to check. The government says the Depot Charging Scheme can cover up to 70% of the cost of charging infrastructure for vans, coaches and eHGVs.
Frequently asked questions
Over how many years should I compare?
Use the period you expect to keep the chargers, and the same period for every option. Ask suppliers how long they will support spare parts and software, because that sets a realistic limit.
Should I include electricity costs?
Yes, if the options differ in when or how efficiently they charge. If they deliver the same energy at the same times, it does not change the comparison.
Is the cheapest charger ever the right choice?
It can be, if running costs and reliability are comparable. The point is to compare on the full cost, not just the price.
Our procurement and supplier selection service builds the cost model and scores bids against it. Send us the quotes you have.
