How to charge for charging? NOW! Innovations Insight series

• 1. HOW TO CHARGE FOR CHARGING? CHOOSING THE RIGHT STRATEGY FOR BILLING AND PAYMENTS FOR EV CHARGING

2. TO PAY OR NOT TO PAY?FREE CHARGING Good for EV promotion But the future development of EV ecosystem needs a solid business model. 3. THE COST OF EV CHARGINGINVESTMENT COSTSHARDWARE MAINTENANCESOFTWARE MAINTENANCEOPERATIONAL COSTSCHARGED ELECTRICITYELECTRICITY CONSUMED BY CHARGERGRID CONNECTIONTRANSACTIONS 4. KEY QUESTIONS IN COMMERCIAL MODELWHAT DO WE SELL?HOW DO WE SELL IT?HOW DO WE GET THE MONEY? 5. WHAT ARE WE SELLING EXACTLY? ELECTRICITY? DRIVING RANGE? TIME IN CHARGER? PERMISSION TO USE QC? 6. REQUIREMENTS FOR COMMERCIAL PLATFORMPRICING FLEXIBILITY kWh-based pricing Session-based pricing Time-based pricing Subscription-based pricing TRANSACTION CONTROL Authorized sessions kWh-based limits Session duration control Credit limits 7. THE STRUCTURE OF DYNAMIC RATE NOW! Platform enables charging station/network service operators to set-up dynamic kwh- or time-based rates using rate frames logic. EXAMPLE: The more the EV driver chargers the cheaper it is to charge the vehicle. One rate three frames Frame 1 Unit Duration Granularity Price per unitKWH up to 5 KWH 0.1 KWH 0.5 EURFrame 2 Unit Duration Granularity Price per unitKWH 5-10 KWH 0.1 KWH 0.3 EURFrame 3 Unit Duration Granularity Price per unitKWH 15- KWH 0.1 KWH 0.2 EUR 8. MULTIPLE RATES ON DIFFERENT TIME-FRAMES NOW! Platform enables charging station/network service operators defining time-based rates. EXAMPLE: It is possible to combine time-based and rate-based pricing. It can be cheaper for an EV driver to charge over night.07:00 21:00 Rate frame 1Unit Duration Granularity Price per unitKWH up to 5 KWH 0.1 KWH 0.5 EUR21:00 07:00 Rate frame 2Unit Duration Granularity Price per unitKWH 5- unlimited KWH 0.1 KWH 0.2 EURRate frame 1Unit Duration Granularity Price per unitKWH up to 5 KWH 0.1 KWH 0.3 EURRate frame 2Unit Duration Granularity Price per unitKWH 5- unlimited KWH 0.1 KWH 0.2 EUR 9. IMPROVE CUSTOMER LOYALTY WITH SUBSCRIPTION PACKAGES NOW! Platform enables adding subscription fee (monthly fee, for instance) and combine this fee with lower tariffs. EXAMPLE: SPECIAL RATES FOR PREMIUM USERS FIRST 5KWH FOR FREE SPECIAL RATE CLASSMONTHLY FEE10 EURRate frame 1Unit Duration Granularity Price per unitKWH up to 5 KWH 0.1 KWH 0 EURRate frame 2Unit Duration Granularity Price per unitKWH 5 KWH- unlimited 0.1 KWH 0.11 EUR 10. HOW DO WE SELL IT? 11. NOW! PLATFORM FEATURESSELF-SERVICE Registration over the website or in mobile appAUTOMATED APPROACH Launch charging using mobile phone, RFID-card, pin-pad.MULTIPLE BILLING OPTIONS Pre-paid accounts Pay-as-you-go Post-paid 12. WHEN TO CHARGE FOR CHARGING? Based on the EV driver classes, it is possible to set-up various billing options within NOW! Platform. PRE-PAIDPAY-AS-YOU-GOCollect payments from users in advance before using the services.Collect payments as the services are used, after each charging session.Advantages: Credit risk management Suitable for non-regular customers. User registration required over the web or app. The user wallet has to have funds available at all times prior to using of services.User registration required over the web or app. Payment source, which will be billed after each transaction has to be linked to the account.Advantage: improved cash flow Disadvantage: high transaction costsPOST-PAID Services are offered to customers throughout month, and in the end of the month the customers are billed to pay for the services within the given time frame. Advantage: low transaction costs. Disadvantage: higher credit risk. User registration required over the web or app. At registration user is assigned a credit limit. Monthly invoices can be paid by bank transfer or credit-card. 13. HOW TO GET THE MONEY IN A REASONABLE WAY? 14. COMPARING DIFFERENT PAYMENT METHODS When offering different payment methods to customers, it is important to consider costs associated with each method, as they can significantly increase the cost of hard and thus the service. Providing physical credit card or cash POS hardware makes sense only with high turnover services.CREDIT/DEBIT CARD POS+ CASHCASHLESS PAYMENTSAdds hardware costs 5001000EUR per chargerSame costs as in credit/debit card POS + CASH HANDLING COSTS 0.2% - 0.5% of sum, minimum 15-20EUR per one money collection routineNO ADDITIONAL HARDWARE COSTSAdds maintenance costs 15-20EUR per charger per month minimum Transaction costs 2-3% of sum, fixed minimum 0.2-0.5EUR + System certification costsNO ADDITIONAL MAINTENANCE WITH E-INVOICES NO TRANSACTION FEES 15. CASHLESS PAYMENTS AND MOBILE WALLET EXPLAINEDCHOOSE THE SERVICEMOBILE WALLET GETS THE REAL MONEY FROM THE PAYMENT SOURCEAUTHORIZE TRANSACTION STORE THE TRANSACTION IN YOUR MOBILE WALLET IN PAYMENT SYSTEMCREDIT CARDBANK ACCOUNTPAYPALPAYMENT SYSTEM DISTRIBUTES MONEY TO SERVICE PROVIDERS 16. PAYMENT SOURCES SUPPORTED BY NOW! PLATFORM NOW! Platform supports various payment processing e.g. real-time payments using credit cards or direct debit payments, manual payments, etc. Since transaction costs depend on the payment source, you may choose the right mix depending on the nature of your business and customers.REAL-TIME DEBIT CARDS: VISA MasterCard Maestro CREDIT CARDS: VISA MasterCard American AMERICA EXPRESS Diners Club JCB ONLINE PAYMENT SOURCES PayPal Skrill OtherASYNCHRONOUS SEPA DIRECT DEBITMANUAL SEPA BANK TRANSFER CASH PAYMENTS 17. CHECK LISTTo make the EV charging service sustainable it is extremely important to choose the right payment solution.FLEXIBLE TARIFF ENGINE VERSATILE BILLING MODELS CASHLESS PAYMENTS VARIOUS PAYMENT SOURCES 18. SEE ALSO: NOW! INNOVATIONS CASE STUDIESwww.nowinnovations.com/ case-studiesTo read the case studies scan the QR code or click the link above 19. THANK YOU!JARMO TUISK Director, electric mobility solutions Mob:+372 52 01443Office:+372 6 023 046Skype:[email protected] www.nowinnovations.com