EV Finance

Fleet electrification brings logistics companies, schools, and municipalities long-term cost savings. The cost and capital budget impacts of electric vehicles (EVs) can be constraints for organizations as well as designing an EV infrastructure to support the fleet.


Trends in EV Costs

The cost benefits of financing an EV fleet is becoming more lucrative as the vehicles and their batteries become more fuel and energy efficient, with longer life spans. Many fleet owners recognize this, making decisions to electrify based on the total cost of ownership (TCO) savings compared to internal combustion engine vehicles (ICEVs).


The cost to make lithium-ion batteries have decreased significantly since the first EVs hit the market in 2010. Manufacturing the first generation of batteries cost anywhere between $800 and $1,000 per kilowatt-hour (kWh).1  In 2017, the price fell to around $200. Looking to the future, EVs are expected to reach unsubsidized price parity with comparable ICEVs when battery costs reach $101 per kWh by 2023.2  By 2030, these expenses are projected to cost as little as $73/kWh.3


EVs have fewer moving parts than non-electric vehicles, need less cooling and less force to brake, and require less maintenance tasks including changing oil, air filters, spark plugs and fan belts.
As of March 20, 2021, the national average cost to fuel 1 gallon of gasoline fuel is $2.85, compared to $1.16 with the equivalent in electricity, also referred to as an “eGallon.”4 In addition, EVs are more fuel efficient than diesel-based vehicles, converting over 77% of electrical energy to power at the wheels compared to combustion vehicles that convert between 12% and 30% of stored energy from gasoline.5
Federal and local governments, as well as some utilities, may offer tax credits or other cost-saving incentives that fleet owners can take advantage of to reduce upfront vehicle and infrastructure costs. The current federal program may provide new EV purchasers with up to $7,500 in tax credits.6  Incentives at the state level will vary and take the form of grants, tax incentives, loans, rebates and exemptions. Information on state programs is detailed on the Database of State Incentives for Renewables & Efficiency (DSIRE) website.

Read more: Enterprise-Level EV Financial Incentives Every Fleet Owner Should Know


Removing Financial Barriers to EV Fleets

Leverage a Renewable Energy Source

Organizations seeking to remove financial barriers to EV fleet implementation require an infrastructure designed for cost-effectiveness and efficiency. Typically, fleet owners leveraging an infrastructure powered by renewable energy will receive the greatest long-term expense reductions.


One common and efficient source of on-site energy to support an EV fleet is solar photovoltaics (PV). PV power generates self-sustaining electricity that is typically cheaper to generate than when purchasing from a utility.


Work with a Fleet Electrification Collaborator

Financing an EV fleet project requires the right experience and management support to help ensure optimal upfront and operational costs. eTransEnergy is a fleet electrification provider specializing in arming fleet owners with end-to-end EV solutions that help ensure lower total cost of ownership (TCO).


eTransEnergy offers multiple project financing options, including the option of a subscription-based “as-a-service” model, with the flexibility to reduce or remove the upfront costs of electrifying a fleet. From the pre-planning to full operation, eTransEnergy analyzes the project plan and fleet infrastructure setup to identify areas where optimizations can be made to increase cost savings and efficient energy use.


Interested in discussing how you can finance an EV fleet project or how you can electrify your fleet with minimal cost barriers? Contact eTransEnergy and an EV professional will be happy to discuss your fleet goals and investment options.


Get EV Financing Support 1 https://www.ucsusa.org/resources/ev-batteries
2 https://about.bnef.com/electric-vehicle-outlook/
3 https://data.bloomberglp.com/bnef/sites/14/2017/07/BNEF-Lithium-ion-battery-costs-and-market.pdf
4 https://www.energy.gov/eere/electricvehicles/saving-fuel-and-vehicle-costs
5 https://www.fueleconomy.gov/feg/evtech.shtml
6 https://www.fueleconomy.gov/feg/taxevb.shtml