If you’re a fleet manager thinking about electrifying some or all of your fleet, you’ll need a solid plan to get you there. Not everyone can go from zero to full electrification in one fell swoop.
Here’s a step-by-step approach to the process. Customize this plan to your company’s needs, and your roadmap to fleet electrification will get underway sooner than you dreamed possible.
1. Know When to Make the Move Toward Total Fleet Electrification
For most fleet managers and owners, the right time to begin the electrification process depends on their company’s financial health and the popularity of EVs in their area.
Regarding popularity, there couldn’t be a better time to pour what funds your company can spare into electrifying at least a portion of your fleet. EV fleet vehicles’ popularity has soared over the years – and stands at its highest level ever.
As for financial health, the stats on lower maintenance and fuel costs in electric fleet vehicles are in. They show a massive difference in favor of electrified fleet vehicles. Even better, battery and charging technologies will only get better in the future.
2. Conduct a SWOT Analysis of Your Current Fleet
As a Qmerit post points out, the next step in your roadmap should be a thorough study of your fleet’s “unique strengths and challenges.” A simple SWOT analysis can give you an accurate snapshot of your fleet and your company’s ability to move toward total electrification.
As you assess your fleet’s strengths, weaknesses, opportunities, and threats, be sure to include the following areas:
- Both internal and external factors that affect your fleet
- Current capacity
- Future potential
- Requirements your fleet vehicles must meet, such as regulatory adherence, task capability, and range capacity
- Route requirements, including terrain, temperature, distance, and charging opportunities
- Current costs and estimated future costs after electrification
- Industry compliance requirements
- Load requirements for each type of vehicle (heavy-, medium-, and light-duty vehicles)
3. Weigh the Advantages of Fleet Electrification Against Disadvantages
Next, it’s time to assess your company’s readiness for electrification. Before you start, ask yourself these questions:
- Does your company have the funds and infrastructure to completely electrify your fleet?
- How will electrification impact your fleet’s bottom line?
- How can switching your fleet vehicles to electric ones benefit your customers and employees?
Assess Your Funding and Infrastructure Needs
Do you have adequate cash in the bank to fund new EV fleet vehicle purchases and charging infrastructure? Looking at your budget needs to be the first step to determining your readiness.
Take a deep dive into how much money you’ll need to replace each of your vehicles. If you don’t have enough cash, get quotes from lenders – or see if your existing lines of credit could cover what you need to spend.
Investigate other sources of funding, too. Many utilities and government agencies have stepped up with tax credits, rebates, and other incentives for companies that want to electrify their fleets. Look at current prices for used diesel and gas fleet vehicles in your area to determine how much you could get for the ones you want to replace.
In addition, determine if fleet vehicle EV charging is available in your area. If not, get estimates for installing charging stations in your facilities. You’ll need to factor these expenses into your feasibility analysis as well.
Research Roadblocks to Fleet Electrification
Not all areas have utilities that can handle the high number of fleets switching to electric vehicles. If your utility isn’t quite ready yet, partner with their leadership team to craft a realistic pathway forward.
Take weather and terrain into consideration. In mountainous and cold regions, some electric fleet vehicles could lose range or adequate power. If you plan to locate in such an area, consider those factors when you select fleet vehicles. Be sure to choose ones that can handle the conditions your drivers encounter.
Calculate the Savings You Could Realize by Electrifying Your Fleet
A recent Rocky Mountain Institute study indicated that fleets could save 9 cents per mile on their total average costs for every diesel or gas vehicle that they swap for an electric one. That doesn’t only include fuel. It covers the initial purchase and maintenance costs as well. Although the initial purchase amount is usually higher for an electric fleet vehicle, lower maintenance and fuel costs will more than make up for the difference.
In addition, fleets with seasonal downtime can earn passive income by using V2G technology to feed the furloughed vehicle’s energy back into the grid. Many utilities have programs that pay companies and individuals who do exactly that.
Of course, some fleets won’t have the cash to switch all their vehicles simultaneously. However, socking away the money they’ll save by electrifying even a part of their fleets will provide them with more money to convert more of their fleets in the future.
Research Range Requirements and Route Changes Needed to Compensate
Look at the ranges of vehicles you are considering to see how long they can go between charging sessions. Then, check charging availability along their usual routes. You might need to tweak their routes a bit to route them through areas with more fleet-capable charging stations.
Study the Health Impact of Switching to an Electric Fleet
Research continues to pour in regarding the health risks internal combustion-powered vehicles pose. Recent studies show that diesel and gas vehicles cause health issues in drivers and passengers as well as the air in the immediate environment.
4. Make Your Case to Your Organization’s Leadership
If you’re a fleet manager who reports to higher-ups, you’ll need to present your argument for electrifying at least part of your fleet to your organization’s leadership. Compile all the information you’ve gathered and construct a detailed yet easy-to-understand presentation to convince company leaders that fleet electrification is the right move.
Use charts, graphs, and diagrams to organize your information. Since visual learners comprise about 65% of the population, it’s essential to include information in a way that’s easy for them to digest.
Be sure to include statistics, especially when presenting your idea to your chief financial officer (CFO) and their team. Avoid overly technical terms so they focus on the facts without resorting to a dictionary.
5. Develop a Procurement and Optimization Protocol for Vehicles and Charging Equipment
Let’s say your presentation was a rousing success. Your CEO even smiled as she gave you the nod to start the fleet electrification process. Now, it’s time to choose which vehicles and charging options best meet your organization’s needs.
Since you’ve already researched which vehicles will meet your requirements to replace your existing fleet, it’s time to narrow down your search. Similarly, you’ve done extensive work tracking down chargers in your immediate area. Now, look at your budget to see how you can maximize your investment in clean transportation.
Find the Right Replacement Vehicles
Make a list of requirements for each vehicle you want to replace. Include battery capacity, range, maintenance needs, and the payload it must be capable of carrying. If you want to take advantage of V2G technology – and we suggest you do – add bidirectional charging capability to that list.
Then, go down your list to find fleet vehicles that meet those requirements. Jot down the price for each.
Don’t forget to look at the same models with a few miles on them. You might need the wiggle room that buying used can give you as you compare your budget to your shortlist.
After you’ve compiled your shortlist, recruit your drivers to test-drive those vehicles. Note their observations next to each vehicle’s price and features. If they’re like most drivers, they’ll find that driving an electric model provides a smoother experience than their current ones.
Finally, choose the vehicles that best align with the drivers’ preferences, your specifications, and your budget.
Choose the Optimum Charging Infrastructure
Again, the legwork you did in the initial phases of your research will pay off in spades now. If you choose to purchase chargers to install on company premises, get the most bang for your charging buck.
Compare the chargers that you’ve already looked at for factors like downtime, charging speed, and, of course, price. For example, although Level 2 EV chargers might look tempting price-wise, they might be too slow to meet your needs if you need a quick turnaround. If you want to incorporate V2G charging, limit your shortlist to those capable of bidirectional charging.
Regional bus fleets might find that installing chargers along the route in addition to those in their home garages would be a wise use of time as they wait for travelers to board. On the other hand, if you plan to use local resources to charge your fleet, double-check them for downtime, availability, and ease of payment.
Get the Most Out of Your Investment with Fleet Optimization
Once you’ve acquired all the fleet vehicles and charging infrastructure your budget can handle, make the most of your investment. Here are some tips to keep your vehicles running at top efficiency:
- Keep your batteries in tip-top condition to minimize their degradation rate.
- Teach drivers who are new to EV fleets how to optimize range and performance.
- Provide drivers with routes that maximize tasks completed during a single charge.
- Use a smart charging program to cut energy costs by charging your vehicles during off-peak hours.
Discover More About Fleet Electrification and More at an EV Charging Summit Event
There’s one place where all the finest minds in the EV charging industry come to share ideas and help EV businesses achieve top efficiency – the EV Charging Summit. Reserve your spot today!
