At-Home EV Charging Costs: Balancing Accurate and Fair Electricity Reimbursement

The results from our 2024 “Wheels Environmental Sustainability Benchmark Report” are clear: electrification continues to take center stage for many fleet managers. Over 66% of respondents to our survey are actively discussing, planning, or already deploying electric vehicles (EVs). As EV adoption increases, so does the range of reimbursement options available to reimburse drivers for electricity.

Mileage-Based Reimbursement

Six percent of respondents are using mileage-based reimbursement, which estimates energy usage based on miles driven. This method works well for companies looking to simplify administrative processes while providing a fair calculation. However, as noted in our recent Environmental Sustainability Benchmark Report Webinar, this approach may be less effective as fleets diversify in vehicle types and regional electricity costs.

No Reimbursement – A Flexible Solution

About 15% of companies don’t offer direct reimbursement for at-home charging. Instead, some companies support drivers through other means, such as covering installation costs for home chargers or subsidizing the equipment itself. This approach offers flexibility, especially for organizations just beginning their electrification journey.

During the webinar, there was an emphasis on the importance of these initial steps, particularly for fleets with tight budgets or leased properties. This can be a good starting point while companies evaluate long-term EV charging reimbursement strategies, considering factors like kilowatt-hour consumption and the availability of EV charging stations.

Charging Data-Based Reimbursement

For 48% of companies, accuracy is a higher priority, so they base reimbursements on actual charging data directly from the charger, ensuring a more precise match between driver energy use and compensation. This data-centric approach also provides valuable insights into overall fleet efficiency and energy consumption more accurately, aligning with broader sustainability goals. Charging data provides the most accurate reflection of at-home EV costs, ensuring fair reimbursement based on actual kilowatt-hour usage.

Vehicle Data-Based Reimbursement

A smaller group (9%) leverages telematics data directly for reimbursements. By integrating real-time telematics data, these companies achieve a closer alignment between energy use and compensation. This method is a forward-thinking strategy that provides transparency and reinforces sustainability goals.

Flat Rate or Monthly Stipend

Finally, about 15% of companies use a flat rate or monthly stipend. While administratively simple, this method may lack precision, potentially leading to over- or under-compensation. This approach is easy on the administrative side, it may not be as precise in matching actual energy usage.

Balancing Needs and Goals

Webinar participants raised an important point: reimbursement strategies must align with organizational priorities, whether it’s simplicity, precision, or cost-effectiveness. With 82% of companies paying for home charger installations either fully or partially, a clear trend toward shared investment in sustainability emerges.Electrification isn’t just for early adopters anymore. With the growing variety of EV models and charging options, organizations have more tools than ever to achieve their sustainability goals. These findings show that no single solution works for every company. Each method has its advantages, and companies are testing different strategies to find the best way to support drivers while keeping sustainability goals in focus. For more insights on how companies are adapting their sustainability strategies, download our 2024 Sustainability Benchmark Report today