Electrify America updates pricing with fairer kWh-based model resulting in lower prices

Electrify America has announced a significant update to its pricing structure resulting in lower prices — mainly through the introduction of kWh-based pricing.

With the charging industry still being somewhat recent, charging networks are trying to navigate a complex market that involves working closely with electric utilities and automakers.

Now after operating and growing its network for a few years and listening to customers, Electrify America is changing its entire pricing structure today with kWh-based pricing.

Kilowatt-hour pricing is generally regarded as fairer than time-based pricing since you pay for the actual electricity delivered to your vehicle.

Giovanni Palazzo, president and chief executive officer of Electrify America, commented on today’s announcement:

Electrify America has listened to feedback from electric vehicle owners, potential customers, and longtime industry advocates. As a result we have developed a new pricing structure that is fair, consistent, and recognizes the increasing customer demand for kilowatt-hour pricing. With the new pricing, we deliver a simplified charging experience that shows new and existing customers how easy it is to own an EV.

The new kWh-based pricing is available in 23 states, where it is possible based on the local regulations:

In those states, which are home to over 70% of Electrify America’s customers, EV owners charging on Electrify America’s network will be charged $0.43 per kWh.

For those who decide to pay a $4 per month Electrify America subscription, the price per kWh goes down to $0.31.Also of note, with this update, Electrify America has removed its $1 charge per charging session.

In the other markets, Electrify America is obligated to keep a per-minute pricing model due to local regulations controlling the sale of electricity.

However, the charging network is also updating its per-minute pricing with now just two power levels for electric cars chariging up to 90 kW ($0.16 per minute without subscription and $0.12 per minute with subscription) and EVs charging up to 350 kW ($0.32 per minute without subscription and $0.24 per minute with subscription).

In an interview with Electrek yesterday, Palazzo said that they are working with regulators to promote kWh-based pricing:

We are helping increase awareness at the regulator level to move to kWh base price. We have contacted every state already and we have received response from everyone.

The CEO says that it might happen fast in some states, but the process could be slower in others.

Interestingly, Electrify America decided to go with a uniform pricing nationally instead of adjusting the prices for each market depending on the electricity rates.

Palazzo told Electrek that they wanted to go “all-in on simplification,” but they are still open to adapting the pricing per region in the future.

The new pricing structure is starting today at Electrify America’s more than 470 charging stations around the US.