Revenue sharing models are structured commercial frameworks that define how EV charging income (and sometimes costs) is split between parties involved in delivering charging, typically the site host (property owner, retailer, municipality, hotel, employer) and the charge point operator (CPO) or service provider. These models clarify who funds the project, who operates it, how revenue is defined (gross vs net), and how payouts are calculated and reported.
Revenue sharing is most common in public and destination charging where the host controls the location and access, while the operator manages hardware uptime, software, payments, and customer support.
Why Revenue Sharing Models Matter
Revenue-sharing models help stakeholders:
– Align incentives to increase utilization rate and maintain high uptime
– Create a bankable business case with clearer ROI and payback period assumptions
– Avoid disputes about fees, refunds, VAT, and roaming settlements
– Choose the right risk allocation (utilization risk, energy price risk, maintenance risk)
– Support multi-site rollouts with repeatable contract templates
The Most Common Revenue Sharing Models
EV charging revenue splits typically follow one of these approaches:
– Net revenue share (percentage split)
– Revenue is shared after agreed deductions (often payment fees, refunds, roaming fees, sometimes platform fees)
– Preferred when the goal is to share profit-like outcomes, not just sales volume
– Gross revenue share (percentage split)
– Revenue is shared based on customer spend before deductions
– Simple, but can be unfair when costs/fees vary significantly by site or payment method
– Fixed site fee + operator keeps charging revenue
– Host receives a fixed monthly/annual payment (or per-charger fee)
– Operator carries utilization and pricing risk, and keeps upside
– Minimum guarantee + upside share
– Host gets a guaranteed minimum payout, then shares additional revenue above a threshold
– Common for premium sites where hosts want downside protection
– Tiered revenue share
– Split changes once usage or revenue reaches defined tiers
– Encourages both parties to promote the site and scale utilization
– Cost recovery first, then share (“waterfall” model)
– Early revenue covers CAPEX/OPEX (or financing), then remaining profit is shared
– Useful when one party makes a large upfront investment and wants faster payback
– Management fee model
– Operator is paid a fixed fee to operate and maintain the site; host keeps most revenue
– Often used in workplace, residential, or privately controlled sites
What Should Be Defined in Any Revenue Sharing Model
To prevent confusion and protect both parties, a contract should define:
– Revenue definition: gross vs net, and what is deductible
– Energy cost treatment: who pays for electricity and whether it’s deducted before sharing
– Tariff ownership: who sets pricing per kWh / per minute and idle fees
– VAT/tax handling: whether VAT is included/excluded from “revenue” and who remits it
– Roaming inclusion: whether roaming revenue is included and how OCPI settlements are reconciled
– Refunds and chargebacks: who carries the cost and how disputes are handled
– Reporting cadence: monthly statements, payout timing, audit rights, and reconciliation rules
– Service levels: uptime targets, penalties, and maintenance responsibilities
Choosing the Right Model by Site Type
Different site types tend to favor different structures:
– Retail / hospitality / destinations
– Net revenue share or minimum guarantee + upside share (host values footfall + predictable payout)
– Municipal / on-street
– Net revenue share with clear cost deductions and strict reporting (public accountability and transparency)
– Workplace
– Management fee model or cost-plus (charging is often an employee benefit, not a profit center)
– Residential / multi-tenant
– Cost recovery first, then share (helps repay installation costs while enabling fair long-term splits)
– Fleet depots
– Often not revenue sharing at all, but internal cost allocation; if hosted by a landlord, fixed fee + service SLAs is common
Common Mistakes That Cause Disputes
– Using “revenue” without defining gross vs net
– Forgetting roaming fees, payment fees, and refunds in the deduction list
– No reconciliation method for sessions vs transactions or billed vs delivered kWh
– No clarity on who pays energy and how energy is priced
– Missing rules for downtime impact and billable uptime
Related Glossary Terms
Revenue sharing model
Revenue reporting
Revenue analytics
Revenue leakage detection
Charging monetization
Utilization rate
kWh-based billing
Payment gateway integration
OCPI
OCPP
Return on investment (ROI)