New research shedding light on the major savings from fleet electrification is now out.
The new white paper, developed by the Association for Renewable Energy and Clean Technology (REA) and Energy Saving Trust (EST), reveals that operators can save around £1,500 annually for each light commercial vehicle (LCV) switched to electric. That’s based on an eLCV driving 15,000 miles a year and charged at the depot or home.
For rigid HGVs driving the same distance, the savings could be approximately £3,500 annually.
The cost savings are based on the research indicating electric vehicles only require 25-30% of the energy that a diesel equivalent would need to deliver the same performance, highlighting the substantial efficiency gains from electrification.
The Energy Saving Trust said the estimated savings support the economic viability of transitioning to electric vehicles and the efficiency gains that can be realised.
The paper, developed by the REA’s HGV and Commercial Fleet Working Group, also emphasises the benefits of smart charging, which can significantly reduce costs by enabling fleet managers to schedule charging during off-peak times when electricity prices are lower. Smart charging also reduces the need for costly grid upgrades and improves overall efficiency.
The new report also discusses the potential of depot sharing and spotlights how it could significantly reduce the demand for public charging infrastructure for commercial vehicles, facilitating faster and more cost-effective fleet electrification.
The findings support a Department for Transport-funded project that’s already underway to enable fleet operators to share private depot charge points.
The REA and EST report provides a detailed roadmap to successfully fleet electrification, offering step-by-step guidance, demonstrating value for money and efficiency savings, and insights into overcoming current barriers to adoption.
Case studies are included, showcasing successful fleet electrification projects by REA members. For example, Drax’s deployment of EV charging infrastructure for SES Water is saving an estimated 43 tonnes of CO2 per year, while Mer’s installation of 200 chargers for Ikea supports the retailer’s commitment to sustainable deliveries.
Matt Adams, transport policy manager, REA said: “The REA, with its diverse membership, is uniquely positioned to take an authoritative stance on fleet electrification. This resource provides a proven, well-managed process for fleet managers considering electrification, offering significant savings on fuel costs and helping fleets achieve their ESG targets.”
Future of Roads Minister Lilian Greenwood commented: “Our roads are undergoing a technological revolution, and fleets will play a big part.
“A cleaner greener transport network is a key priority for this government, which is why we have plug-in grants available for vans and trucks and programmes aimed at scaling up zero emission HGVs, to decarbonise road freight. The REA and Energy Savings Trust’s new resource is a great step on our path to net zero.”
The new report is available online here.
