As technology improves and electric vehicles and charging infrastructure become more widely available, a growing number of fleets now include alternatives to gas-powered vehicles. In fact, nearly half (45%) of fleet vehicles in a study by Enterprise Fleet Management and Geotab could be electrified by 2025. The fact that OEMs are able to produce higher performance and longer range EVs than in the past has accelerated the move to EVs. 

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But are they right for your fleet? Here’s a look at factors to consider before going electric. 

Total Cost of Ownership 

The International Energy Agency has an interactive calculator where you can plug in vehicle type and region to compare the total cost of ownership for an EV versus a fuel-powered vehicle, a fuel hybrid or a plug-in hybrid now or ten years in the future. Using the advanced settings, you can also adjust variables such as insurance, maintenance, and registration fees. 

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• Sticker price: In many cases, EVs may carry a higher sticker price. The National Resources Defence Council reports that in September 2023, those purchasing new EVs paid $2,800 more than the average paid for a new gas-powered vehicle. But the price gap between gas-powered and electric vehicles has narrowed in recent years, and tax credits for EVs can offset their higher purchase price. 
• Maintenance costs: Because there are fewer fluids and fewer moving parts compared to a conventional fuel engine, EVs require less maintenance. According to AAA, EVs cost $949 less annually if maintained according to the automakers’ recommendations. 
• Fuel costs: AAA also reports that the gas needed to power a compact car driving 15,000 miles/year would cost over $1,200, while the electricity needed for a compact EV would cost a fraction of that (an average of $546). Also, because gas prices can be much more volatile compared to energy costs, EVs may provide more predictable fuel costs for your fleet. 

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Very soon, the cost of EVs could become even more cost-efficient. The consulting company McKinsey predicts that by 2025, the cost of charging infrastructure will be canceled out by factors including lower depreciation, maintenance costs, and fuel costs for light commercial battery electric vehicles. 

Brand Impact 

As young, eco-conscious consumers gain more purchasing power, they are demanding that companies become more sustainable and transparent. Brands that respond to these expectations are poised to secure their business. In fact, study published in Harvard Business Review found that Gen Z and Millennial customers are 27% more likely to purchase from a brand they believe cares about its environmental and social impact compared to older generations. 

Ability to Comply with Regulations and Benefit from Incentives

Before electrifying your fleet, it’s important to understand how state and federal laws and EV tax incentives could impact you and your overall costs. The federal government offers a maximum Commercial EV Tax Credit of up to $7,500 for vehicles under 14,000 lbs. and $40,000 for vehicles above 14,000 lbs. 

Some industries have their own incentives. For instance, the EPA has a program that funds the replacement of existing school buses with zero-emission school buses or clean, alternative fuel school buses. 

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Some states also have regulations and incentives for EVs. For example, California charges a tariff on heavy-duty EV fleets that encourages charging when there is extra capacity in the grid. (If that’s not feasible for your fleet, you’d want to include these tariffs in your calculation of total ownership cost.) The state also requires that cities, counties, and special districts have at least 75% of passenger cars and light-duty trucks be vehicle-efficient (which includes EVs). 

Regional Climate

If your fleet is located in an area with extreme hot or cold temperatures, that can impact an EV’s range and battery. Recurrent Motors analyzed 18 popular EV models and found that they averaged 70% of their range in freezing temperatures. Batteries can also take longer to charge under cold conditions, reports Scientific American. To combat these issues, some scientists are working on self-heating batteries. 

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Very warm weather can impact EVs, too. When temperatures soar above 85 degrees, the heat degrades and ages the battery. It also decreases the battery’s range. Recurrent found that at 90 degrees, EVs lost 5% of their usual range, and at 100 degrees, they lost 31%. 

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Of course, extreme temperatures aren’t ideal for gas-powered cars either. 

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Access to Charging

Charging infrastructure is becoming more widely available but access can vary depending on where your fleet is located. If you’re in an area with a high concentration of EV charging options, then electrifying your fleet may be a more viable option. 

Driving Behavior 

Consider how the vehicles in your fleet are used. Smooth accelerations use less energy than harsh accelerations, so drivers who generally accelerate smoothly may get a longer charge compared to those who perform jackrabbit starts, according to Mobility Outlook. Faster speeds create more air resistance and require more energy, so high-speed driving can deplete the battery more quickly. 

Greater Safety 

Both gas-powered and EVs must meet federal safety standards and testing, but the EPA points out several safety advantages of EVs. First, when an EV detects a short circuit or collision, it shuts down the electrical system. Plus, they are designed with a lower center of gravity compared to gas-powered cars, reducing the possibility of a rollover. 

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Many fleet managers are adding EVs, but there are multiple factors to consider. If you’re ready to electrify your fleet, then connect with partnerships@bluedot.co to learn how Bluedot can help you navigate your EV transition. Bluedot streamlines public and at-home charging for fleets, giving fleet managers the tools and insights necessary to inform their pilot decision-making.