The rapid growth of commercial fleet electrification is undeniable. In the United States alone, a study by Cox Automotive revealed that in Q1 2024, 53% of surveyed commercial fleets planned to acquire electric vehicles (EVs) in their next acquisition cycle—a significant increase of about 20% since 2022.
Despite this momentum, transitioning to a fully electric fleet can be daunting due to costs, infrastructure requirements, and regulatory complexities. The immediate benefits may not be apparent, as achieving zero emissions and realizing substantial reductions in fueling and maintenance expenses takes time to yield a return on investment (ROI).
However, integrating even a portion of EVs into your fleet can enhance uptime and reduce operational costs. Charging-as-a-Service (CaaS) offers a scalable solution that grows with your fleet’s electrification needs. Many commercial fleet operators grapple with how to incorporate EVs effectively and assess whether they align with their Environmental, Social, and Governance (ESG) objectives, operational demands, and profitability targets.
Discover how a CaaS provider like Electrada can support both partially and fully electrified fleets through its comprehensive 360 CaaS solution.
Testing Electrification Within a Mixed Fleet
Here are five recommended steps to help you seamlessly integrate EVs into your commercial fleet:
1. Conduct a Fleet Analysis
Begin by reviewing all the vehicles in your fleet, including their use cases, routes (distance and frequency), and payloads. This analysis will help you identify which vehicles are best suited for electrification. Surprisingly, vehicles that travel under 200 miles per day are often excellent candidates for immediate electrification.
2. Determine Costs and Upfront Investment
Utilize tools like Electrada’s EV Rate Calculator to estimate the cost of electric fuel, providing a basis for comparison with your internal combustion engine (ICE) fuel costs per mile. The calculator can also assist in planning mixed fleet expansion by offering data-driven insights on fuel costs per mile, helping you decide whether to electrify in phases or transition all at once.
3. Gather Process and Charging Infrastructure Information
Compile essential information for daily vehicle operations. Consider factors such as vehicle types, range, and dwell times to optimize charging schedules. Since charging takes longer than refueling with gasoline or diesel, it’s most efficient to charge vehicles during their normal downtime.
Key data to collect, based on the vehicle type (hybrid, plug-in hybrid, or fully electric), include:
- Total Battery Capacity: How much energy the battery can store.
- Current State of Charge: The existing battery level.
- Charging Power: The rate at which the battery can be charged.
When planning infrastructure, a crucial decision is whether to select AC or DC charging. Smart and managed charging systems facilitate integration with building and utility infrastructure. Deploying temporary charging services can help you determine the optimal number of vehicles to charge, charging frequency, and the number of chargers required. This approach also aids in pinpointing the ideal locations for permanent charging infrastructure.
Electrada’s 360 CaaS customizes charging infrastructure tailored to various vehicle types and manages services according to each fleet’s unique needs.
4. Track Costs and Uptime
Starting with a few EVs allows you to monitor fueling costs and uptime for the electric portion of your mixed fleet, enabling a direct comparison with your ICE vehicles. Fleet managers may also benefit from reduced maintenance requirements—since EVs have significantly fewer moving parts—and can proactively address upcoming regulatory requirements.
5. Consider a CaaS Business Model in a Mixed Fleet
Instead of a do-it-yourself or turnkey approach, adopting a Charging-as-a-Service model enables fleet managers to concentrate on operations while the CaaS provider handles the rest. A provider like Electrada takes care of tailoring charging infrastructure to your fleet’s needs, covering 100% of the capital expenses, ensuring regulatory compliance, navigating utility guidelines, incorporating available incentives, guaranteeing 99% uptime, and offering predictable pricing.
Electrification Business Models and Features
| Business Model | Vehicles | Design/Build | Infrastructure Management |
|---|---|---|---|
| DIY | Fleet operator purchases and/or leases vehicles. | Operator handles all design and EVSE selection. | Operator manages implementation and infrastructure independently. |
| Turnkey | Fleet operator purchases and/or leases vehicles. | Operator uses a turnkey solution for design, EVSE selection, and implementation. | Operator manages infrastructure independently. |
| CaaS | Fleet operator purchases and/or leases vehicles independently, with optional guidance on vehicle selection from Electrada. | Electrada’s 360 CaaS includes all design, EVSE selection tailored to fleet cases, and implementation. | Electrada manages infrastructure, providing electric fuel at a predictable price for the life of the contract. |
Easing the Transition to a Mixed Fleet
Transitioning to an electric fleet can start with electrifying just a portion of your vehicles. Partnering with an experienced CaaS provider like Electrada simplifies the process.
Electrada’s 360 CaaS is a vital tool for initiating partial fleet electrification, assisting in testing infrastructure and guaranteeing uptime. Whether you choose to electrify part of your fleet or the entire fleet, 360 CaaS offers a comprehensive, performance-guaranteed, and risk-mitigated solution.
Get in touch now to take the first step towards electrification.
