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
Financial Benefits of EVs
Before financing an EV fleet, it’s important to understand their cost benefits when compared to diesel-powered vehicles:
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