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How to Budget for Fleet Electrification

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This week is National Drive Electric Week. Many people and businesses are switching over to electric vehicles to save money on fuel or protect our environment. If you’ve considered swapping to EVs but find it might be too expensive, you’re not alone. Budgeting is often the first concern for fleets when they contemplate electrification. Let’s discuss how to budget for EV fleet management to make it possible. 

What Are The Costs of Going Electric?

Before determining how to save money, we need to understand the costs of electrification. 

Let’s first consider charging stations. You’ll need to think about how many chargers you’ll require and how much power those chargers need. Depending on your charging site, installers might need to dig underground, which raises the cost. You also might need to undergo inspections or obtain an electrical permit. Installing electric charging stations at a driver’s home may be cheaper, but you must also reimburse them for electricity use. 

Secondly, determine the locations of electric charging stations on your driver routes. You may need to change your drivers’ routes if there aren’t enough. 

Finally, there is the cost of the vehicle itself. As EV implementation grows, you’ll notice a price decrease. However, even with high initial costs, you’ll save money in the long run. EVs are easy to maintain and cost less to fuel up. 

Save Money on Charging Your Electric Vehicles

You can charge electric vehicles in a few different ways, so pick the option that best suits your fleet. 

The cheapest and most widely available method is home or depot charging. If you can set up charging stations at your depot, it’s easy for drivers to charge up when they have idle time. As mentioned above, you can also install charging stations at a driver’s home, with their permission. With this method, you can take advantage of off-peak rates for electricity. 

Public charging is the most challenging option, but it is often necessary for drivers on overnight trips. If you need to use public charging stations frequently, look for Level 3 fast chargers. A standard level 2 charger takes 8 to 12 hours to charge a battery fully. Meanwhile, a Level 3 charger can do it in under an hour. 

Utilize Cost-Effective Hybrid Models

Even with the savings you’ll obtain, the upfront cost of going electric might be daunting. If EVs are still not in your budget, consider hybrid vehicles. You can optimize the efficiency of your hybrid vehicles by ensuring the battery is always charged, lessening your reliance on fuel. 

Government Incentives

There are many incentives across the country for fleets that seek electrification. For example, the Commercial Clean Vehicle Credit created in 2022 covers some of an EV’s costs. It will cover up to $7,500 for vehicles under 14,000 pounds and up to $40,000 for vehicles weighing more than 14,000 pounds. The details are still in the works, but you should certainly take advantage if you want to switch. 

Stay Up to Date on the Latest EV News

At Azuga, efficient and safe fleet management is the name of the game. We stay current on everything you want to know about what’s happening in the fleet world. For updates on EV implementation and other fleet concerns you may have, check our blog regularly.