The race to EV fleet conversion
Between compelling climate concerns demanding reduced carbon emissions and government-led incentives, public and commercial entities are more driven than ever to convert their vehicle fleets to electric vehicles (EVs). At first glance, the starting line for fleet conversion process appears to be procuring EVs as existing vehicles reach end of life and are replaced. However, the shift to an EV fleet also includes new infrastructure requirements, real estate impacts and cost considerations that should be a part of your planning process.
Accelerating the pace of change
Several trends are fueling the accelerated pace of EV conversions. The Inflation Reduction Act (IRA) offers tax credits to support the conversion to and use of EVs in both consumer and commercial settings, including a Clean Commercial Vehicle Credit and an Alternative Fuel Vehicle Refueling Property Credit. With substantial current funding from the Infrastructure Investment and Jobs Act (IIJA) and tax-relief from the IRA, organizations recognize the opportunity to reduce costs of investing in EV infrastructure now. While the initial price of EVs is higher than traditional vehicles, operational and maintenance costs are greatly reduced.
There are other drivers accelerating fleet conversion, too. Government agencies and private sector companies alike are pursuing aggressive environmental milestones to achieve net zero carbon emissions and reduce climate impact. Adoption of an EV fleet will significantly reduce an organization’s carbon emissions. Technology advancements are making long-range and heavy duty EVs a reality.
En route to fleet conversion
Your process of EV fleet conversion can be slowed by a variety of factors. Approval and installation can take months or even years—especially when decision makers for fleet, equipment, facilities, capital planning and procurement sit in different departments. Long service connection timelines with utility companies and supply chain delays for vehicles, chargers or infrastructure supplies may pump the brakes on your project.
The road ahead
While the benefits of converting to EV fleets are clear, the best strategy for design and deployment of charging infrastructure is not always as apparent. No matter where you are in the process of EV fleet conversion, there are steps you can take to pursue sustainable success.