The True Total Cost of Fleet Electrification
Friday, November 22, 2024
The True Total Cost of Fleet Electrification
 By Adam Seifert, Director, Fleet Advisory & Analytics, Inspiration Mobility
aseifert@inspirationmobility.com
When implemented correctly, electric vehicle fleets offer several advantages over their ICE equivalents. However, when developing an electrification strategy, fleet operators should keep three key areas in mind when developing a strategy to avoid surprises: charging infrastructure, operating costs, and your organizational impact.
Charging Infrastructure
Small, light-duty fleets might be able to squeak by using public charging, but the majority will pay the price with downtime and energy costs. Depot, home charging, or a multi-fleet hub subscription is a must for a successful transition. Keep these costs in mind: charging hardware (EVSE); depot design, development, and construction costs; and utility costs. The right partner will help find any applicable incentives to bring the total cost down, with the potential for substantial savings.
Operations and maintenance costs should also be factored into the equation. This includes energy costs, routine maintenance, and software to manage charging, if needed.
Operating Costs
This is where EV benefits start to take shape. Operating an EV fleet yields immediate savings in fuel and vehicle maintenance, helping offset your infrastructure costs. EVs can be run for extended lifecycles, lowering TCO further and not something easily done with aging ICE vehicles. While bodywork costs for EVs are slightly higher than ICE vehicles today, enhanced safety features and a lower center of gravity can help drivers avoid getting into collisions to begin with.
Organizational Impact
Internal coordination and change management are necessary for effective EV implementation. Most drivers enjoy the quiet and smooth ride of EVs, but they will need to learn how to properly operate and charge their new vehicles. Furthermore, accurate tracking and reporting of greenhouse gas emissions is important for shareholders and your customer base. Some states require EVs for specific fleet types. Getting ahead of electrification now can avoid scrambling to avoid fines or lost business.
Fleets experience the greatest success with their electrification projects when they work with a partner who can develop a future proofed roadmap. This gets drivers maximum uptime and the right vehicles and charging solution for every use case. Initial infrastructure costs amortized over two or three lease cycles are easily offset by substantial fuel and maintenance savings over running ICE vehicles.
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