EV 101
Five reasons to electrify your fleet today
The past several years have been an exciting time for transportation, as more individuals and fleets are transitioning to electric vehicles. While many have embraced this change, some businesses have delayed the transition, waiting for the perfect time to make the leap. Here are five reasons to get started with electrification today:
EVs aren’t just for passengers anymore
To some, electric vehicles (EVs) are still a niche offering, but the market availability and demand are growing fast. Almost 14 million new EVs were registered globally throughout 2023. Of those, about two-thirds of the vehicles were SUVs, pick-up trucks, or large cars, indicating the expansion of available EVs into multiple vehicle types. Major legacy automakers are also making bold moves, with Volvo, Isuzu, and others making new advancements in heavy-duty electric trucks.
Innovation is bringing down the EV price shock
Fleet operators justifiably worry about the high costs of EVs, but as technology improves, the cost has lowered. The manufacturer’s suggested retail price (MSRP) of EVs is decreasing thanks to advances in battery and powertrain technologies.
Cost savings with electric fuel
EVs are more efficient at using power than internal combustion engine (ICE) vehicles, and combined with charge management software, fleets can see significant savings. For example, our customer Manhattan Beer is estimated to have saved over $22,000 (48%) in electricity costs in H1 2024* using our Omega charge management software.
*Compared to data modeled estimated costs for unmanaged charging without load management during the same time period (Jan-June 2024). Exact savings for your fleet can vary based on factors including your utility rates, charging strategy, and equipment uptime.
A flurry of funding opportunities are available now
Recent legislation has opened new opportunities in public funding for EVs, especially for public or commercial operators. The Inflation Reduction Act (IRA) is a prime opportunity, but rebates and grants from federal legislation can also be “stacked” with local- and state-level incentives.
This practice can significantly reduce total cost of ownership, particularly upfront procurement costs. Many of these opportunities are offered on a first-come, first-served basis or are eligibility and time-restricted.
Downsides for delayed electrification
Some governments are initiating reward and penalty approaches to encourage electrification. Waiting to convert to EVs could result in a double penalty: missed funding opportunities and potential fines as ICE bans and other regulations take effect. California, for instance, requires all new light-duty passenger vehicles to be zero emission vehicles (ZEVs) by 2035, and the Environmental Protection Agency and National Highway Traffic Safety Administration are pushing for stricter emissions and fuel economy standards nationwide.
Being ahead on regulation requires aligning overarching business and sustainability goals with the legislative environment. Now is the time to prompt these discussions internally and generate buy-in from everyone from the C-suite to your drivers.
The transportation industry has come a long way in addressing the barriers that once faced prospective EV fleets. The economics, technology, and policy trends are all trending toward lower carbon intensity. But perhaps most importantly, fleets now have an array of experts to draw help from, including public entities, industry groups, and software solution providers. When it comes to shaping the future of transportation, we’re all in this together.
Go further
Not sure where to start?
We recently hosted our customer, Manhattan Beer for a virtual webinar to hear the real-world wins and challenges they experienced through electrification. Register to watch the discussion on-demand.
Date
14 October 2024
author
Karen Hsu
Director of Fleet
bp pulse
Topics
