If you’ve been wondering how to transition to an electric fleet, the good news is it can be simpler than you think. With evolving government incentives, advancements in EV technology, and growing support for infrastructure, now is the ideal time to make the transition.
Why transition to an electric fleet?
There are many benefits to enjoy. Sustainability, optimised operational performance, and lower total cost of ownership are at the heart of any fleet transition program, and electric vehicles (EVs) can deliver across all fronts.
Reduced running costs
While the initial purchase price of an electric vehicle might be higher than a diesel or petrol equivalent, EVs often make up for it through lower operating costs.
Electricity is generally cheaper than fossil fuels, and with fewer moving parts, EVs require less maintenance. EV charging can also be automated at the lowest possible cost, saving you money. Over time, this results in a healthier balance sheet for your business.
Environmental benefits
Opting for an electric commercial fleet is one of the most impactful decisions you can make for the planet. Zero tailpipe emissions improve air quality in local communities, and reduced reliance on fossil fuels supports national and international climate goals.
By taking real steps to reduce your carbon footprint, you’ll also bolster your brand reputation and meet the growing demand for environmentally conscious businesses.
Government support
The UK Government, local authorities, and other European countries are actively encouraging the adoption of electric fleets. From purchase grants to tax breaks, a range of financial incentives can help offset your upfront costs.
Whether you’re interested in how to switch to an electric lorry fleet or last mile delivery vans, there’s likely a grant or relief program to suit your needs.
Establish new revenue streams
As Mike Nugent, Chief Revenue Officer at Hitachi ZeroCarbon, discussed with Net Zero Week:
“Through electrification, fleets can be much more efficient and effective, because we have more data, we know how they operate in real time, we can manage their schedules and we can see how they deliver their services in the most cost effective manner.
“When we look at a fleet operator’s depot, there are opportunities for storage, for generation and for shared infrastructure, providing a whole new stream of revenues that can be tapped into today. It’s about thinking systemically and having control of the entire ecosystem. It’s important to have the mindset that this is systemic change. So don’t just look to buy the best vehicle or charging point, but think about how it fits into the wider ecosystem and how can you take advantage of those new opportunities.”
Understand your requirements
Before you dive into the process of electrifying your fleet, you need to be sure about what your business needs. Every operation is different, and you need to understand your budget constraints, what support is available to you, and whether you’re replacing vehicles or expanding an existing fleet.
Financial incentives
Capital expenditure is often the biggest barrier to fleet electrification. However, numerous grants, tax breaks, and other incentives can dramatically reduce upfront costs:
- The UK’s Workplace Charging Scheme (WCS): Covers part of the cost of installing charge points at your business premises.
- Tax breaks & write-down allowances: Many electric commercial vehicles qualify for accelerated capital allowances.
- France’s ecological bonus: Businesses can receive up to €4,000 towards the cost of low-emission vehicles under €47,000.
- Italy’s EV incentive programme: Companies replacing older petrol or diesel vehicles with battery-electric models can access grants of up to €13,750.
- Germany’s environmental bonus: Businesses can deduct up to 40% of the cost of new electric vehicles, while preferential tax treatment applies to EVs worth up to €95,000.
- Norway’s EV tax exemptions: Electric commercial vehicles benefit from full purchase tax and VAT exemptions to help lower costs.
- Spain’s MOVES III programme: Provides funding for businesses installing EV charging stations, supporting both urban and rural fleet operations.
Many governments are actively increasing support for electric fleets, making the transition more affordable across Europe.
For more details, you can contact us at Hitachi ZeroCarbon for greater access to finance that can help you cover the switch to electric.
Current fleet
When it comes to your electric vehicle fleet transition, consider whether you’re replacing vehicles or expanding your existing fleet:
- Replacement strategy: If your current vehicles are nearing the end of their operational life, an electric replacement schedule could make logistical and financial sense.
- Supplementing an existing fleet: Some businesses start small by adding a few electric vehicles to the current fleet. This phased approach helps you gather practical performance data before a wider rollout.
Careful assessment of vehicle age, mileage, and maintenance costs can guide you in deciding how and when to retire older models.
Light commercial vehicles
For small businesses and last-mile delivery services, light commercial electric vehicles can be a natural first step toward fleet electrification.
Operational differences
- Payload & range: Modern electric vans offer ranges that can exceed 150 miles on a single charge, which is usually enough for daily urban routes. However, payload capacity can affect range, so monitoring your average weight is essential.
- Driving patterns: Short city trips with frequent stops often allow for regenerative braking, improving energy efficiency and reducing the need for frequent charging.
- Noise levels: Light commercial EVs produce far less noise than traditional vans, which can be a selling point for businesses operating in residential or noise-sensitive areas.
Infrastructure requirements
- Workplace charging: Many light commercial vehicle fleets recharge overnight at a depot or workplace. The Workplace Charging Scheme can subsidise the cost of installing multiple charge points.
- Public charging networks: If your vans regularly traverse longer routes or if you don’t have a dedicated depot, tapping into the public charging network is crucial. Rapid-charging stations can power your EV from 20% to 80% in under an hour, minimising downtime.
- Home charging: If employees take vans home, consider offering grants or reimbursements for home charger installations. This allows for overnight charging and a fresh start each morning.
Bus and lorry electric fleets
For large-scale operations, such as public transport services, logistics, and freight companies, shifting to an electric bus or lorry fleet is a bigger but increasingly viable leap.
Operational differences
- Longer routes & higher payloads: Buses and HGVs (Heavy Goods Vehicles) require more energy to run due to larger size and heavier payloads, but newer models are steadily improving in battery capacity and range.
- Scheduled stops: Many bus routes operate on set schedules, making it easier to plan charging sessions during off-peak hours. Lorries, especially those making regional or national deliveries, may need strategic route planning to accommodate charging intervals.
- Regulatory pressures: Urban areas across the UK are introducing Low Emission Zones (LEZs) or Ultra Low Emission Zones (ULEZs). Electric buses and lorries help operators avoid hefty fees and comply with strict emission standards.
Infrastructure requirements
- High-power charging stations: Larger vehicles need higher-capacity charging, often requiring specialised infrastructure such as depot-based fast chargers or overnight charging systems that deliver enough power for the next day’s run.
- Grid capacity: For bus depots and lorry fleets, the local electrical grid must handle the higher power draw of multiple vehicles charging simultaneously. You may need to coordinate with local energy providers to upgrade the grid connection or explore on-site renewable energy solutions.
- Maintenance facilities: Heavier EVs can require specialised maintenance equipment and trained technicians. Partnering with experienced service providers can ensure minimal downtime.
Choosing your fleet management solution
A successful fleet transition program hinges on more than just purchasing vehicles. It requires ongoing monitoring and optimisation to ensure your new electric fleet operates efficiently.
- Telematics & data analytics: Modern telematics solutions provide real-time data on battery status, range, and overall vehicle health. Access to such insights helps you plan routes, anticipate maintenance, and manage charging times, improving fleet reliability and cost-effectiveness.
- Smart charging software: With multiple EVs to charge, smart scheduling can help balance load and reduce energy costs. Platforms can automatically prioritise vehicles with the lowest battery levels or upcoming journeys, ensuring every vehicle is road-ready when needed.
- Route optimisation: If you’re running an electric lorry fleet, you’ll want to plan routes around available charging stations. Incorporating route optimisation software can cut down on unnecessary travel, help avoid range anxiety, and minimise downtime.
- Scalable infrastructure: As your operation grows or battery technology advances, your charging solutions should be able to scale without major overhauls. A flexible infrastructure design, possibly with modular charging units, can support future fleet expansions or tech upgrades.
- Training & support: Staff training is essential, from drivers learning how to maximise range to maintenance teams adapting to the quirks of electric motors and battery systems. A smooth transition to electric vehicles often hinges on well-trained personnel who understand the nuances of EV operation.
- Financial consultation: If you’re still unsure about the best way to fund your electric vehicle fleet transition, consider professional advice. Hitachi ZeroCarbon offers tailored financing solutions, ensuring you can get the most from your EV operations while minimising upfront costs.
Ready to begin your transition?
If you’d like personalised advice on how to transition to an electric fleet, reach out to our team. Our solutions can help you evaluate your current vehicles, guide you through government incentives, and set up a robust charging infrastructure.
We can also help optimise your fleet performance with smart data insights, manage running costs, and develop a future-proof electrification strategy tailored to your business. Get in touch today, and let’s take the next step towards a cleaner, more cost-effective fleet.