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Fleets

Fleet Electrification Strategy: The Most Economical Ways to Transition

By

December 21, 2022

Electric vehicles (EVs) and hybrids will account for an estimated 30% of all vehicles by 2025. Safe to say, they are the future of mobility.

However, the transition from traditional vehicles to electric is rife with obstacles. Developing an efficient and economical fleet electrification strategy can take a lot of work.

This guide breaks down the best options for your electrification journey that will ensure long-term success and business growth.

How To Create an EV Strategy for Your Fleet

Regardless of the size of your fleet, replacing your vehicles with electric ones requires the thoughtful consideration of a few factors. You not only have to look at purchasing EVs with the same build and capacity as your gas-powered vehicles, but you also have to evaluate:

The Distance Your Vehicle's Cover on a Daily Basis

What distances does your current fleet cover? This will help you determine the types of EVs that you need. Some EVs can run for longer than others on a single charge. They are, of course, more expensive. However, if your fleet is used for shorter distances and can easily be charged during the day, then you can opt for more affordable EVs and charge them in between trips.

Your EVs’ Capital and Operating Expenses 

Similar to how you mapped out your expenses for your gas or diesel vehicles, consider the costs of an EV fleet. As you plan your finances, you’ll notice that traditional vehicles are cheaper while EVs cost significantly higher. However, in the long run, traditional vehicles’ maintenance and fuel costs are much higher than what is needed to maintain and charge electric vehicles. This means that shifting to an EV fleet requires more upfront capital than gasoline vehicles so you’ll need to plan your cash flow accordingly.

The Charging Stations You’ll Need

You’ve got your eye on certain EV models. You’ve also got your budget worked out. The last step in your strategy is to figure out how to charge them. When planning your charging stations, think about where your EVs will be parked when they’re not in use and for how long they’ll stay there. Though EVs lose minimal power when they aren’t being driven (about 2% to 4% a month for electric cars), you still need to factor this in so that your fleet will be ready to go when you need it. Once you have this mapped out, you can move on to deciding:

  • How long and how often they need to be charged
  • How much power you need
  • How many of them need to be charged simultaneously and the number of charging stations you need
  • Where to place your charging stations
  • What kind of charging stations you need 

Shifting to electric-powered vehicles is a bold move that requires careful planning. But once you iron out the kinks and have your fleet up and running, you can start reaping the many benefits that come with more eco-friendly transportation. A fleet of EVs fosters goodwill from the public, is cheaper to maintain and recharge, and comes with government incentives and tax benefits. 

How To Succeed With Fleet Electrification?

Electrification can help your business reap a range of economic and sustainability benefits. However, a successful transition won’t happen overnight. You must put in the work to get the best return on your investment in these new vehicles and enhance your brand’s sustainability, which will also draw new clients.  

If you’re set to transition your fleet to EV, answer the following questions:

  • What is the range requirement of your fleet? Can it scale your daily distance easily, or should you invest in a better option? 
  • What are the fuel and maintenance costs requirements of your EV of choice?
  • What will be the vehicle's dwell time, and how many charging stations will you need?

You must also consider your driving patterns, the charging infrastructure you’ll use, and the tools and software required to measure EV performance. Once you can predict the total cost of operations, including grid investments, energy costs, and charging station use, you can determine the best strategy for your fleet’s transition.

Due diligence will also give you much-needed insights to manage your EV fleet so you can continually update your strategy and maintain healthy revenue throughout the process.

You must also consider how electrification will change the way vehicles are powered and charged. Emphasis will be placed on user authentication to prevent unauthorized charging. Access to charging stations should also be an essential element of your electrification strategy.

Here are some ways you can charge your fleet to optimize the billing system and charging operations.

Charging Management System: Best Method To Save Money with EVs

It is estimated that by 2025, the cost of EVs may match fossil fuel-powered vehicles.

However, before you transition to an electric fleet, you must pay close attention to the costs you will incur with EVs, the biggest of which will be expenses related to charging and maintenance. 

And what better way to optimize your charging network than by implementing a charging management system?

Charging management systems (CMS) have several benefits, including:

  • Optimizing your charging schedules and behavior
  • Avoiding unnecessary energy costs
  • Managing the charger’s power consumption
  • Creating a robust and efficient billing system
  • Maximizing incentives like smart charging credits and rebates
  • Taking advantage of energy tariffs

A good CMS can significantly reduce energy supply and delivery costs, which will help you create a cost-efficient model for your fleet. 

So, if you want to save money, consider getting charging management software like Ampcontrol. It will help optimize your fleet’s power consumption and modify charger behavior while maintaining service reliability. 

What's the Best Type of Electrification?

There are three types of electric drive systems. Once you are familiar with these different types of electrification, you can implement one that resonates best with your business needs to avail its benefits.

Fully Electric Vehicles (EV) 

All Electric Vehicles (AEV), also known as Battery Electric Vehicles (BEVs), have the same features as traditional vehicles—think accelerators and steering wheels.

EVs store electricity in chemical form. They have onboard batteries that need to remain charged, with no internal combustion engine for backup. This means they run with zero emissions and improve driving range and performance while reducing energy use, making them fantastic for the environment.

Hybrid Electric Vehicles (HEV) 

Hybrid Electric Vehicles (HEV) are the perfect synergy of electric motors and batteries with traditional fuel-burning engines. They harness both fuel and electricity, so you'll be covered even if there’s no charging station in sight. 

HEVs reduce fuel use by increasing the driving range per liter of fuel. This leads to significantly fewer tailpipe emissions, which benefits the environment.  

Plug-in Hybrid Vehicles Electric (PHEV) 

Plug-in Hybrid Vehicles Electric (PHEV) are hybrid cars that can be charged just like fully electric vehicles, but at an external changing source like a power point at home. 

They have an internal combustion engine, which is combined with a battery-powered motor and a regenerative braking system to recharge batteries. They can run longer on electricity than HEVs, resulting in better fuel economy and fewer emissions. 

Conclusion

Electric vehicles are the future of personal and commercial transport. They contribute to business sustainability and reduce operating expenses, and they are undoubtedly a worthy investment.

If your business is ready to transition to EVs, connect with AmpControl. Our experts will evaluate your fleet and help you craft the perfect fleet electrification strategy to get ahead of your competition. We will also help you reduce fuel and maintenance costs and demonstrate your commitment to sustainability.

EV Charging Management Made Simple

Ampcontrol is a cloud-based software that seamlessly connects to charging networks, vehicles, fleet systems, and other software systems. No hardware needed, just a one-time integration.

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