Thinking of adding hybrid or electric vehicles (EV) to your fleet, but not sure if it’s the right business move? You’ve come to the right place to find out more! Today’s post covers the 3 steps you will need to follow in order to arrive at the best decision.
1. Evaluate the Technology
To determine if hybrid vehicles or electric vehicles are the right decision for your fleet, you first need to assess your fleet’s make-up and operations to determine if current EV and/or hybrid technology can meet your needs. For instance, does your fleet consist of heavy-duty, light-duty, or cars? Considering your day-to-day operations, what range requirements will be needed?
2. Create a ROI Forecast
Next, you will need to assess your current vehicle costs and determine how they compare to the costs of EV/hybrid vehicles. Costs include:
- Purchase Cost: Electric vehicles prices are generally higher, but these costs are on the decline. Government incentives and rebates may also be available to offset these costs.
- Total Cost of Ownership: Electric vehicles generally have a longer lifespan and a much lower maintenance costs, but unknown is the resale value. According to a report from the National Renewable Energy Laboratory (NREL), the operational savings from electric vehicles can reach more than 45% in comparison to an internal combustion engine (ICE) vehicle.
- Fuel Costs vs Electrical Costs: Fuel costs are one of the highest operating costs for fleets. By comparison, electrical costs are negligible. For example, the City of Vancouver operates a fleet of 31 EVs, and claim that $440per vehicle is saved annually on fuel alone.
To aid in your forecast, BSM, in partnership with Geotab, can conduct an electric vehicle (EV) suitability assessment of your fleet.
How can this help? By running efficiency diagnostics, you will receive ROI forecasts and recommendations on fleet compositions tailored to your organization. This will allow you to forecast the impact of your plans and ultimately make the decision that’s right for your fleet.
3. Determine Infrastructure Needs
Finally, you will need to look at the infrastructure, both internal and external, needed to support your EV or hybrids. A few things to consider:
- Will your vehicles need mid-day recharge?
- Is there a charging station on-route(s)?
- Is the local government investing in charging infrastructure in your operating area?
- What infrastructure will need to be built on-site, and/or at employee’s residences, for over-night charging?
- Should you install fast-charging stations to minimize charging time?
- What are the costs of implementing?
EV Implementation Timeframe
Let’s say your company buys-in to the idea of converting part of your fleet to EVs. Now what?
You will need to determine 2 things:
- First, you will need to evaluate what the best mix of electric, hybrid, and ICE vehicles are for your fleet.
- Next, you need to determine your implementation timeline. Are you looking for a more gradual approach? A pilot program will allow you to measure the performance of EV and hybrids within your organizational framework and geography, without the large investment of a quick implementation.
Partnering with BSM and implementing the Geotab solution will allow you analyze different scenarios and determine the most cost-effective fleet composition.
Our solution will provide the necessary data to create a multi-year procurement plan. With access to Geotab’s smart data, you will have the ability to monitor the effectiveness of your decision, by viewing your operations before, during, and after you’ve added EVs vehicles to the mix.
Partnering for Good
Want to learn more about the BSM Geotab integrated approach to monitoring hybrid and electric vehicles? Check out our solution brochure here and be sure to tune in next week as we'll be showing you what green fleet monitoring and reporting looks like!