As organizations prioritize corporate social responsibility, many businesses have embraced electric vehicles (EVs) to operate a more sustainable fleet and reduce their carbon footprint. However, determining the best, most effective way to integrate EVs into your fleet can be a challenge even for veteran fleet professionals.
Today, there are dozens of EV/hybrid models available with a variety of charging options—at-home, centralized depot, and public infrastructure. Add to that the nuances of effectively coordinating charger installations, the ongoing management of these units (and the data they produce) along with administrative tasks such as driver reimbursement for charging expenses and it is easy to see how determining the best electrification solution for your fleet can seem overwhelming—but it doesn’t have to be.
To help you develop an effective fleet electrification strategy, here are a few key factors to keep in mind as you begin your planning along with some potential areas of opportunity as you look to move beyond the basics.
KEY PLANNING CONSIDERATIONS
As you explore fleet electrification, you’ll want to work closely with various stakeholders from across your organization – procurement, sustainability, operations, facilities, HR – to identify overarching sustainability goals and determine how your fleet aligns with and supports those objectives. It’s vital that you begin your EV journey with clear intent.
Once you know the business purpose for transitioning to EVs, you can begin to determine the incremental steps it will take to achieve those goals over the next several years. Remember, this transition won’t happen overnight, so it is best to plan for a gradual transition over the course of multiple vehicle lifecycles.
It is also important to keep in mind that integrating EVs into your fleet mix is a bit more complex than simply determining which model is the best fit. Of equal importance is focusing on infrastructure, driver behavior, power needs, charging location(s), and charge data management. During initial consultation with our customers, we often help them think through the right vehicle application, the region in which they operate, driver fit, and the role these units play in supporting the business to develop a holistic, seamless path to fleet electrification.
CHARGING OVERVIEW
When your organization is ready to begin integrating EVs into your fleet mix, you’ll also need to develop a comprehensive charging strategy. The reality is that your charging strategy is just as important, if not more so, as ordering the EVs themselves and you’ll need your solution in place before your first EVs arrive.
There are three primary types of charging solutions, at-home, depot, and public. Most fleet operators are likely to implement a charging strategy that relies on all three options to varying extents but there are several important considerations that will influence your approach.
- Are you prepared to install chargers at drivers’ homes where suitable?
- What is your ability to install depot charging at your facilities?
- What local infrastructure exists to support your fleet’s public charging needs?
If your drivers typically take their fleet vehicles home with them at the end of the day, at-home charging is likely your best option. At-home charging works best for drivers of light-duty vehicles who have a designated parking area (driveway or garage) and whose home can accommodate the installation of charging equipment. At-home charging is typically the most cost-effective charging method as it allows units to charge during off-peak hours, also eliminating unnecessary charging downtime.
It is also important to note that deploying charging stations across numerous locations requires significant planning and coordination as well as ongoing administration. If your electrification strategy includes installing chargers at your drivers’ homes (or various corporate locations), you’ll want to partner with a service provider who can streamline the process. Aligning with the right strategic partner will reduce your administrative burden and allow you to scale your EV program much faster. You’ll want a partner who can help you source reliable charging units, coordinate installation, and ensure charging session data is seamlessly integrated into your analytics platform.
If your vehicles return to a central hub, investing in a depot charging solution is often the best solution. An onsite charging depot is relatively cost effective long-term and provides the convenience of charging at your facility, ensuring vehicles can recharge after a day’s use and will be ready to hit-the-road again the next day. However, there’s a great deal of pre-planning and ongoing management associated with a charging depot, and it involves several stakeholders including operations, property management, and energy providers.
The depot should include a mix of Level 2 and Level 3 chargers and be easily scalable to accommodate long-term EV growth. Additionally, you’ll need a charging strategy that coordinates charging for off-peak hours (as much as possible) to minimize energy costs along with a charge management platform to monitor vehicle usage, charging duration, energy consumption, electricity rates, etc.
Finally, while the public charging infrastructure throughout North America continues to expand, you simply cannot rely on public charging as your fleet’s primary charging solution. In fact, if neither at home nor depot charging options work for your fleet, our recommendation is to delay EV implementation and explore other alternative fuel solutions. However, there are inevitably going to be times when your drivers need to use a public charging station. In this scenario, you’ll want to make accessing public charging as easy as possible for your drivers.
For most drivers, a mobile app is the preferred solution. A mobile app allows drivers to quickly find a charging station and receive turn-by-turn navigation if needed. Some mobile apps also allow the driver to process payment directly from the app, eliminating out-of-pocket expenses. These mobile apps provide an easy and convenient way to access public charging, eliminating potential range anxiety while also simplifying payment to improve the driver’s experience.
DRIVER TRAINING AND REIMBURSEMENT
While EVs are more common today, the reality is that most fleet drivers are unfamiliar with the intricacies of EVs. Whether it is knowing how to properly charge an EV or how to maximize range, many drivers experience a learning curve when transitioning to an EV. With that in mind, you’ll want to provide your drivers with proper training to educate them on the nuances of operating an EV.
A few key training topics include EV safety, techniques to maximize range, and how to properly charge an EV (whether that’s at home, at a depot, or at a public charging station). A comprehensive training program ensures your drivers know how to handle a variety of scenarios associated with driving an EV to deliver a positive experience.
Additionally, if your drivers will be charging their company vehicle at their home, the expectation is that they’ll be reimbursed for the electricity used. However, the process of measuring charging sessions, validating energy consumption, determining the proper reimbursement rate, and processing payment to the driver comes with a substantial administrative burden.
Often, a strategic partner can streamline the reimbursement process to virtually eliminate your administrative responsibilities. Leveraging at-home smart chargers and EV connectivity data, your partner can capture all the information necessary to begin the reimbursement process. This information (once validated to mitigate fraud) along with electricity rate data is used to calculate the reimbursement rate. From there, you have the option to reimburse the driver directly or integrate the data with your expense management system.
EV CONNECTIVITY
Vehicle performance data is the foundation upon which all successful fleet management strategies are built. However, as you add EVs to your fleet mix, there is a growing gap of information for these units as certain data points are no longer captured during the EV’s lifecycle. For example, since EVs don’t refuel with a traditional fuel card, odometer information is collected far less frequently. Similarly, without the need for regular services such as oil changes, EVs may go extended periods without a maintenance visit where this data is collected.
To fill this critical data gap and gather the information you need to manage your EV fleet effectively, you’ll need to leverage telematics to collect performance data. An EV connectivity program can help you easily capture key attributes such as location, odometer reading, charging session data, state of charge, etc. You can also opt to do so with or without monitoring driver behavior. By aggregating this information with the rest of your fleet’s operating data, you’ll have more comprehensive visibility to vehicle performance, allowing you to make informed decisions to optimize your strategy.
READY TO EMBRACE EVS?
While transitioning to EVs may seem intimidating, remember, you don’t have to navigate this road alone. There are a variety of partners and resources available to make integrating EVs into your daily business operations virtually seamless.
about the author
Jeremy Dewey is the manager, energy and fuel at Holman. To learn more, visit www.holman.com.
