A revenue-sharing model is a commercial agreement that defines how EV charging revenue is split between the parties involved in delivering the charging service—most commonly, the site host (property owner, municipality, retail/hotel operator) and the charge point operator (CPO) or charging service provider. The model sets rules for who owns the charger, who pays for installation and operations, how charging revenue is calculated (gross vs net), and how payouts are distributed.
Revenue sharing is widely used when the host provides the location and access to drivers, while the operator manages the charging platform, payments, uptime, and customer support.
Why Revenue Sharing Models Matter
A clear revenue-sharing model helps:
– Align incentives between host and operator (maximize utilization, maintain uptime, protect margins)
– Reduce disputes about fees, refunds, and roaming settlements
– Support predictable cashflow for both parties
– Improve project ROI and accelerate rollout decisions
– Define responsibilities for maintenance, tariffs, and customer experience
It is especially important in public and destination charging where footfall and parking access are controlled by the host, but the operational complexity is handled by the operator.
Common Types of Revenue Sharing Models
Several structures are used in EV charging, depending on who funds the project and how risk is allocated:
– Percentage split of net revenue
– Host and operator split revenue after energy cost and agreed fees
– Often preferred because it reflects real profitability, not just sales
– Percentage split of gross revenue
– Split is based on total customer payments before deductions
– Simpler, but it can create disputes if costs and fees are high
– Fixed host fee + operator keeps revenue
– Host receives a fixed monthly/annual payment (or per charger fee)
– Operator keeps charging revenue and takes the utilization risk
– Cost-plus model
– Host covers costs (energy, maintenance) and receives a defined margin or management fee
– More common in private, semi-private, or workplace environments
– Tiered revenue share
– Share changes based on utilization or revenue thresholds
– Encourages both sides to promote charger usage
– Minimum guarantee + upside share
– Operator guarantees a minimum payout to the host, then shares additional upside
– Useful for premium locations where hosts want downside protection
What “Revenue” Usually Means in These Agreements
To avoid confusion, revenue-sharing agreements should define exactly what is shared:
– Gross revenue: total amount billed to customers
– Net revenue: revenue after agreed deductions, typically including:
– Payment processing fees
– Roaming fees and settlement adjustments (if applicable via OCPI)
– Refunds and chargebacks
– Platform fees (if treated as a deduction)
– Taxes/VAT handling (depends on legal setup)
Some models also define whether energy cost is deducted before sharing, which can significantly change outcomes.
Key Terms and Variables That Affect Payouts
– Tariff ownership: who sets the price per kWh / per minute and idle fees
– Energy purchasing: who pays for electricity and how it is priced (flat tariff vs dynamic)
– Uptime and SLA: downtime impact on revenue and potential penalties
– Maintenance responsibility: who pays for parts, labor, and preventive service
– Billing method: kWh-based billing vs time-based billing and how taxes are applied
– Roaming participation: whether roaming revenue is included and how settlements are reconciled
– Reporting and reconciliation: how disputes are handled and how often payouts occur
How to Reduce Disputes and Revenue Leakage
Best-practice revenue sharing models include:
– Clear definitions of gross vs net revenue and all deductible items
– Transparent revenue reporting with site-level breakdowns
– Reconciliation rules (sessions, billed kWh, payments received, roaming CDR acceptance)
– Agreed treatment of refunds, chargebacks, and failed payments
– Performance KPIs tied to uptime and utilization rate
Related Glossary Terms
Revenue reporting
Revenue analytics
Revenue per charger
Revenue leakage detection
Charging monetization
Utilization rate
kWh-based billing
Payment gateway integration
OCPI
Return on investment (ROI)