How Many EVs Does A Co-op Need Before Managed Charging Pays?
Fewer than you might think — the business case depends primarily on the G&T demand rate
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Jerry Jackson, Ph.D.
President, Jackson Associates July 21, 2026 |
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Many small and mid-sized electric cooperatives are postponing EV managed charging programs for what seems like a sensible reason: "We don't have enough EVs yet to justify the cost." A second, related assumption — that localized grid impacts from EV clustering are still years away — reinforces the decision to wait. This note tests the first assumption with a straightforward question: how many enrolled EVs does a telematics-based managed charging program actually need before the avoided G&T demand charges exceed program costs? The answer — as few as 53 vehicles under typical conditions, and under 140 in nearly all cases — suggests the cost-effectiveness threshold is far lower than most co-ops assume and within reach of most systems in the next two to three program years. The second assumption, about where and when local grid impacts arrive, turns out to be wrong in a different and more urgent way; that's the subject of a follow-on note.
We applied our Grid Impact Model to evaluate a telematics-based managed charging program for an 18,600 utility customer sample. No hardware, no truck rolls — enrollment happens through the vehicle's built-in connectivity, and the program shifts charging away from the monthly coincident peak that drives G&T demand charges. The chart shows net annual benefits per enrolled EV (annual benefits minus annual costs) using typical telemetric program parameters.  The net benefit curve starts in the negative cost territory because platform vendors charge an annual minimum (~$15,000) regardless of enrollment — so at 30 EVs the co-op is paying $500 per vehicle just for the platform. As enrollment grows, that fixed fee dilutes and per-EV cost falls to $75/year for 200 enrolled EVs (about 1% of customers in this example). Total per-EV cost over this range falls from $849 to $260 including customer incentives, administration, and levelized startup/fixed costs (5 yr @ 5%). The benefit side: We selected representative low and high GandT coincident peak rates charged to the co-op of $14/kW-month and $26/kW-month. The two scenarios assume unmanaged EVs contributes 2.0 kW to the evening coincident peak. After derating for control availability and vehicle eligibility, each enrolled EV avoids roughly 1.66 kW of billed demand — worth $279/year at a $14/kW-month G&T rate, or $518/year at $26. Increased utility revenue resulting from shifting EV charging to less expensive off peak hours with a higher margin) adds about 10% of the unmanaged EV revenue to the demand benefit. The result:
Knowing where EV adoption is concentrating lets a co-op target enrollment marketing and boost incentives where each enrolled vehicle is worth the most -- potentially doubling program participation. Business case results for individual co-ops will vary depending on GandT rate structures, co-op margins, EV charging demands, incentives, and individual telemetric program costs. All of these factors can be evaluated with the Grid Impact Model which also answers the spatial question — which feeders, which neighborhoods, how soon — to assist in both EV program marketing and grid management. #electricco-operatives #EVcharging #demandresponse #gridplanning Managed Charging Business Case Q&AHow many enrolled EVs does a co-op need before managed charging pays?In the scenarios evaluated, breakeven occurs at about 53 enrolled EVs when the G&T coincident peak demand charge is $26 per kW-month and about 140 enrolled EVs when the charge is $14 per kW-month.Why does the G&T demand rate matter so much?The G&T demand rate determines the annual value of each kilowatt of coincident peak demand avoided. A higher demand charge increases the savings produced by each enrolled EV and lowers the number of participants required for program breakeven.Why are managed charging costs high at low enrollment?Telematics platform vendors may charge an annual minimum even when only a small number of vehicles are enrolled. As enrollment grows, that fixed cost is spread across more EVs and the program cost per enrolled vehicle declines.Does telematics-based managed charging require utility-installed hardware?Not necessarily. In a telematics-based program, enrollment and charging control can use the vehicle's built-in connectivity, avoiding meter-collar hardware and utility truck rolls for participating vehicles.What factors change the breakeven enrollment for an individual co-op?Important factors include the G&T rate structure, unmanaged EV contribution to the coincident peak, charging-control availability, customer incentives, administrative costs, vendor platform fees, off-peak margins, and achievable participation.How can localized EV forecasts improve managed charging results?Localized forecasts can identify neighborhoods and feeders where EV adoption is concentrating. A co-op can then target outreach and incentives where peak impacts and avoided costs are greatest, improving participation and grid value.Related Grid Impact Model and MAISY Resources
About Jackson AssociatesJackson Associates publishes MAISY Residential Energy Use and Hourly Loads Databases consisting of 7+ million actual identity-protected utility customer records and the Grid Impact Model, an Excel-based utility planning platform that combines identity-protected customer databases, demographic information, transportation data, housing characteristics, and AI-assisted analytics to forecast localized EV adoption, charging loads, distribution impacts, and managed EV charging program economic performance and business case analysis. |