Fleet Depot Charging Costs:
All-In Cost per kWh


A practical guide to what fleets really pay for depot charging and how to model all-in cost per kilowatt-hour.


Why Depot Charging Costs Matter

For fleets, depot charging is where the economics of electrification are won or lost. While public DC fast charging prices are visible on every screen, depot energy costs are buried in utility tariffs, demand charges, and complex billing structures. Understanding the real all-in cost per kilowatt-hour at the depot is essential for accurate total cost of ownership calculations, rate negotiations, and charging strategy.


What Makes Up Depot Cost per kWh

Unlike public DC fast charging networks, depot operators pay a commercial or industrial utility bill. The effective cost per kWh at the depot is a combination of several components:

  • Energy charges: the price per kWh of electricity consumed, often varying by time-of-use window.
  • Demand charges: fees based on the highest power draw (kW) in a billing period, which can dominate the bill if unmanaged.
  • Fixed charges and riders: monthly service fees, grid access fees, and regulatory riders.
  • Taxes and surcharges: state and local additions that increase the effective cost.
  • Onsite infrastructure costs: amortized cost of chargers, wiring, and transformers if you choose to include them in an all-in model.

When fleets talk about “depot cost per kWh,” they usually mean energy plus demand charges, with or without fixed fees. The key is to define what you include and stay consistent across scenarios.


Typical Depot Cost Ranges in the United States (2026)

The ranges below represent typical all-in depot charging costs for medium to large fleets with reasonable attention to charging strategy.

  • Energy-only component: approximately 0.06 to 0.12 per kWh in many markets.
  • Optimized all-in depot cost: approximately 0.07 to 0.11 per kWh when demand charges are well managed and charging is shifted off-peak.
  • Typical all-in depot cost: approximately 0.10 to 0.18 per kWh for fleets with basic time-of-use discipline.
  • Poorly managed depots: approximately 0.18 to 0.30 per kWh when vehicles charge during peak windows and demand charges spike.

These ranges are averages, not guarantees. Actual costs depend heavily on location, tariff design, load factor, and how aggressively the fleet manages peak demand.


Peak vs Off-Peak Charging Windows

Most commercial and industrial tariffs include time-of-use windows that significantly change the effective cost per kWh.

  • Off-peak: approximately 0.05 to 0.09 per kWh energy.
  • Mid-peak: approximately 0.08 to 0.14 per kWh energy.
  • On-peak: approximately 0.12 to 0.25 or more per kWh energy, often stacked with high demand charges.

For depots, the most important rule is simple: avoid “everyone plugs in at the same time” during the most expensive window. Smart scheduling and managed charging software can flatten the load profile and move the majority of energy into cheaper periods.


The Impact of Demand Charges

Demand charges are often the single largest driver of high depot costs. They are calculated on the highest measured kW draw over a short interval within the billing period.

  • A single uncontrolled peak can raise costs for the entire month.
  • Depots with low utilization but high nameplate capacity may see very high effective cost per kWh.
  • High load factor (steady, well-utilized power) spreads demand charges over more kWh and reduces cost.

In many real-world bills, demand charges account for 30 to 60 percent of the total cost. Managing them is often more important than chasing small differences in energy rates.


Role of Solar and Battery Storage

Onsite solar and battery energy storage systems can significantly reshape depot economics, especially in sunny or high-tariff regions.

  • Solar: offsets daytime energy consumption and can directly lower average cost per kWh when paired with favorable net metering or self-consumption.
  • Battery storage: charges during off-peak periods and discharges during on-peak or high-demand periods, shaving both energy and demand peaks.
  • Microgrids: combine solar, storage, and grid connection under a single control system, maximizing resilience and cost optimization.

With well-designed solar and storage, the marginal cost of a “battery-assisted” depot kWh can fall into the 0.05 to 0.10 range in favorable markets, though capital expenditures and financing terms must be accounted for separately.


Depot vs Public DC Fast Charging

The economic contrast between depot and public DC fast charging is stark and is one of the main reasons depot-centric strategies are so attractive for fleets.

  • Optimized depot: approximately 0.09 to 0.15 per kWh all-in.
  • Public DC fast charging: approximately 0.35 to 0.50 per kWh.

Expressed as a multiplier, public DC fast charging is commonly 2.5 to 3.5 times more expensive per kWh than a well-managed depot. For fleets that can keep the majority of their charging at the depot, this cost gap drives substantial total cost of ownership savings.


Regional and Tariff Differences

Depot costs vary widely between regions due to differences in generation mix, grid constraints, and regulatory structures.

  • Some utilities offer dedicated EV or fleet tariffs that reduce or restructure demand charges.
  • Others still use legacy commercial tariffs that penalize high peaks harshly.
  • Regions with abundant low-cost generation may see lower base energy rates but still face meaningful demand charges.

For serious projects, reviewing and modeling actual utility tariffs is essential. The ranges in this guide are designed as practical defaults when detailed local data is not yet available.


Designing a Cost-Optimized Depot

Several design and operational practices consistently lower depot cost per kWh:

  • Use managed charging software to stagger and shape loads instead of allowing uncontrolled plug-in behavior.
  • Target off-peak and mid-peak windows for the majority of energy consumption.
  • Right-size transformer and service capacity for realistic simultaneous use instead of worst-case coincidence.
  • Consider solar and battery storage where tariffs and climate support a strong business case.
  • Monitor monthly demand peaks and adjust operational rules whenever a new high peak is set.

Key Takeaways

  • Depot cost per kWh is shaped by energy rates, demand charges, time-of-use windows, and how intelligently fleets manage their load.
  • Typical all-in depot costs fall in the 0.10 to 0.18 per kWh range, with best-case scenarios below 0.11 and poorly managed depots above 0.20.
  • Onsite solar and battery storage can significantly reduce both energy and demand components of the bill when designed correctly.
  • Public DC fast charging is usually 2 to 4 times more expensive per kWh than depot charging, which is why depot-centric strategies are central to fleet electrification economics.
  • A simple three-point model (low, mid, high) with a small set of multipliers provides a practical way to compare depot scenarios without needing every tariff detail.