How to make the business case for fleet electrification
In years past, moving to electric vehicles to meet sustainability goals meant making difficult tradeoffs with business goals, due to the expense of EVs and sacrifices in range. But today, that’s rapidly changing: advances in technology, combined with tax credits and other government incentives, are rapidly making the cost of clean vehicles less than traditional fleet vehicles.
Whether you’re weighing the costs of transitioning your company’s fleet to clean energy vehicles, or trying to get others on board, these three resources from Breaking Barriers Collaborative and the Electrification Coalition will help you take inventory and make the business case.
1. Compare vehicles’ Total Cost of Ownership with the DRVE tool
The key to making the best business decision on vehicles for your fleet is thinking long-term. The Total Cost of Ownership (TCO) is an estimation of the expenses associated with purchasing, deploying, using, and retiring a vehicle or piece of equipment. Because the TCO takes into account the financial expenses over the whole life of the vehicle, it provides a holistic way of looking at what a product actually costs.
When you’re considering different vehicle options, calculating the TCO needs to take into account miles driven, gasoline and electricity prices in your area, your desired years of ownership/lease, and several other factors.
The free DRVE tool from the Electrification Coalition makes it easy to calculate TCO for multiple vehicles and compare your options. With a few inputs from you, this unique, turnkey tool can provide analysis for light-, medium-, and heavy-duty fleet electrification within minutes.
TCO comparison of Chevrolet Silverado EV and standard model, generated by the DRVE tool
2. Claim financial incentives with the EV Funding Finder
(Including for tax-exempt organizations!)
Federal, state, and local financial incentives for fleet electrification are growing all the time. These can help significantly reduce the upfront costs associated with fleet electrification, and ultimately bring the lifetime costs even lower.
Now, under the Inflation Reduction Act (IRA), tax-exempt entities like local and state governments can receive clean energy-related tax credits through elective pay (also called direct pay). This new mechanism will make it more cost-effective for government entities to participate in the transition to clean energy and electric vehicles.
All of the funding available can make identifying and applying for the proper funding streams daunting. The EV Funding Finder tool helps eligible recipients sort through available federal funds for transportation electrification and helps recipients understand how investments can be matched. It can also help users identify where technical assistance is available.
3. Get personalized support developing your business case with the Fleet Decarbonization Accelerator
Still need clarity about how a decarbonized fleet may work for your business? You can get personalized support from experts to develop an actionable plan for your business’ fleet—at a fraction of the cost of engaging a consulting firm, and a fraction of the time it takes to navigate resources alone.
The Fleet Decarbonization Accelerator is a cohort-based program where participants learn directly from specialists who know the ins and outs of the transition to zero emissions vehicles—utilities, government agencies, seasoned experts from the Electrification Coalition, and businesses who have successfully “greened” their fleets. This proven program is endorsed by 95% of its graduates, from those with small fleets like the Seattle Aquarium to larger fleets like McKinstry and Skanska. Through the Accelerator, over 100 decision-makers have created plans to electrify their fleets—encompassing over 15,000 vehicles.
Want to learn more? Get in touch!
