High upfront cost – barrier to electrifying fleets
In March, we shared a poll to identify what is the main barrier to electrifying your commercial vehicles.
We asked our Commercial Vehicle Specialist Kellie Davis to address each barrier individually so last week she shared her insights on Charging Infrastructure as a barrier to electrifying fleets.
In this week’s article, Kellie will discuss the ‘High upfront cost’ barrier.
Kellie, can you tell us how the cost of an EV compares to the cost of a similar ICE vehicle?
There is no question, EVs are typically more expensive on a comparative vehicle than an ICE vehicle when you look at the purchase price. And it is understandable that the electrification of fleets is highly reliant on the upfront costs and without financial initiatives it can be quite a difficult barrier to overcome.
However, there are many perks for organisations who want to switch to electric vehicles such as tax benefits, EV charging tax exemptions, capital allowance, to mention a few.
Even if your monthly rental is higher or the purchase price, when you do a life cost comparison you may be pleasantly surprised. Reduced service and maintenance cost, less components and lubricants will show a huge saving in long term. Also, not to forget that many cities across UK are introducing Clean Air Zones, and if your vehicles don’t comply the emission standards you need to pay a daily charge. So going electric can help make significant savings in these areas.
For organisation who are considering of going green, what would be your advice to reduce costs?
The Government has different initiatives in place to help organisations make the leap so it’s important to know what’s available out there. Driver education is also key to adoption of EV vehicles and educating drivers on responsible driving will no doubt help you cut costs.
Also, electrifying all vehicles in one go can be difficult and costly so Plug-in Hybrids are a great alternative to help you go green and reduce costs in a long run.
There’s a lot more to be discussed on this topic as every organisation has different requirements and needs so if you want to have a chat with me, get in touch.