Demand charges on commercial EV chargers in New York

One session can set the month's bill

A commercial electric bill has two main parts. Energy is billed per kilowatt-hour delivered. Demand is billed per kilowatt, based on the highest demand recorded in a short measurement interval during the month; the interval depends on the service classification. A single DC fast charging session at 150 kW can set the demand charge for the entire month even if the charger is used only a few times, which is why a new public charger with few sessions can produce an electric bill larger than the revenue it collects.

Load factor is average power divided by peak power. A 150 kW charger that delivers 360 kWh a day averages 15 kW, a load factor of 10%, and early-stage public chargers often run at 5 to 10%. At a low load factor the demand charge is spread over few kWh, which raises the effective cost of every kWh sold. As utilization grows, the same charge is divided across more energy. The programs below exist to carry sites through that early period.

Con Edison EV Phase-In Rate

The EV Phase-In Rate (Rider AD) (opens an external site) is available to customers eligible for SC9 Rate I or II, or PASNY Rate I or II, whose charging makes up at least half of connected load (a Charging Ratio of 50% or more) or whose EV charging is separately metered. It cannot be combined with Rider J or Excelsior Jobs Program discounts.

Con Edison assigns a tier from the site's load factor over the previous year; a site with less than six months of data starts in Tier 1. Lower tiers pay little or no delivery demand charge and a higher per-kWh delivery charge. Tiers are reviewed twice a year, and a site leaves the rate after its load factor stays at 25% or higher for four evaluation periods. The customer charge is $71 a month on Rate 1 and $500 on Rate 2.

Planning figures only. Rates change, and supply charges and surcharges are billed on top.

Con Edison demand charge credit and SmartCharge Commercial

In January 2023 the Public Service Commission approved alternatives to standard demand charges for charging stations (Case 22-E-0236), including a 50% demand charge credit for public DC fast chargers in Con Edison and Orange and Rockland territory and a commercial managed charging program.

That program, SmartCharge Commercial (opens an external site), pays $0.03 per kWh for charging between midnight and 8 a.m., and $10 per kW from June to September or $2 per kW from October to May for reducing load during network peak periods. Published sources differ on whether the demand charge credit, SmartCharge Commercial and the EV Phase-In Rate can be stacked, so that is settled with Con Edison before enrolling.

PSEG Long Island DCFC Incentive and Phase-In Rate

PSEG Long Island's DCFC Incentive Program (opens an external site) rebates up to 50% of demand charges for Rate 281 customers with public DC fast chargers of at least 50 kW with CCS or CHAdeMO connectors. NACS connectors are allowed when at least one CCS or CHAdeMO connector is also provided. The program runs through December 2026, and PSEG Long Island calculates the rebate and issues a check once the requirements are met.

PSEG Long Island's own EV Phase-In Rate is open now to Rate 285 customers; Rate 281 customers become eligible in January 2027, when the DCFC Incentive ends for them. PSEG Long Island runs its own Make-Ready program, separate from the Public Service Commission program. On April 21, 2026, it stopped pre-approving DC fast charging projects for 2026 because applications exceeded the budget; applications are still accepted but are not funded at present, and incentive amounts may be revised. The status of Level 2 incentives is confirmed directly with PSEG Long Island.

Make-Ready, Charge Ready NY, NEVI and the 30C credit

The Joint Utilities Make-Ready Program (opens an external site) covers Con Edison, National Grid, NYSEG, RG&E, Central Hudson and Orange and Rockland. It pays for utility-side and customer-side infrastructure such as conductors, trenching, panels, energy storage, load management and conduit for future ports. Chargers, power modules, mounting and network fees are not eligible. Incentive levels range up to 100% for public, non-proprietary DC fast charging in disadvantaged communities, up to 90% for public sites with standardized plugs, and up to 50% for non-public sites such as workplaces.

Under a Public Service Commission order of March 23, 2026 (Case 18-E-0138), the program stopped accepting Level 2 applications on April 22, 2026 and paused DC fast charging applications on the same date. DC fast charging may reopen once each utility's data-reporting compliance plan is approved. The Participant Guide was updated on July 13, 2026.

• Participants, Approved Contractors and network service providers (NSPs) must meet a 90% data-reporting threshold, and projects must use an NSP from the new Eligible NSP List.
• DC fast charging sites need at least two plugs, ports of at least 50 kW delivered simultaneously, ISO 15118 hardware and software conformance, OCPP 2.0.1 or later and a model on the verified product list.
• Sites must operate for five years, with DC plugs operational 95% of the year and stations 99%.
• The final incentive payment is withheld until one month of utilization and uptime data has been reported for each charger.

Data reporting is now a condition of funding. When the program reopens, the choice of network and contractor will affect eligibility as much as the hardware does.

NYSERDA Charge Ready NY 2.0 (opens an external site) supports Level 2 charging only: $3,000 per port at workplaces, multifamily buildings and hotels, an additional $1,000 per port in a disadvantaged community, and $1,000 per port for assigned or fleet-reserved spaces. NYSERDA raised the budget to $28 million in February 2026; applications are accepted until December 31, 2026 or until funds are exhausted, and funds are awarded first come, first served. Equipment and networks must be on NYSERDA's eligible lists, and retail and restaurant parking is not among the eligible property types. For highway corridor DC fast charging, NYSERDA administers federal NEVI funds; the April 2026 round, PON 6150, requires at least 150 kW, four ports charging simultaneously, a location within one travel mile of an exit and 24-hour access, and Buy America rules apply to the equipment.

The federal 30C Alternative Fuel Vehicle Refueling Property Credit (opens an external site) does not apply to charging equipment placed in service after June 30, 2026. New York State's alternative fuels and electric vehicle recharging property credit still applies to charging equipment used 50% or more in a trade or business in the State: the lesser of 50% of the cost, net of grant funding, or $5,000 per installation, claimed on Form IT-637 or CT-637. 2025 legislation extended it through tax year 2028. We are contractors, not tax advisors. For property placed in service earlier, or for other tax treatment of a charging project, consult a CPA.

Designing the site to limit the peak

• Power sharing across dispensers, so several cars divide one power limit.
• A site kW cap set in the charger or the back-end, using OCPP smart charging profiles.
• Battery buffering, which can count as make-ready infrastructure; note the 2026 tariff on imported lithium-ion batteries.
• Overnight scheduling for fleet vehicles, which also earns the SmartCharge Commercial off-peak payment.
• A separate service or meter for the chargers, which keeps building demand separate and supports Phase-In Rate eligibility.

With 12 months of electric bills and a parking layout we estimate demand charges for options such as two Level 2 ports, two 60 kW DC ports and four DC ports, and identify which programs are open for the site at that time. We prepare the utility application and coordinate the work, performed by licensed partner electricians; enrollment decisions rest with the utility and NYSERDA. Program information in this guide was last checked on October 25, 2026.