For society to reach net-zero emissions, a widespread switch to electric vehicles is essential; businesses can lead the way. David Savage, vice president, UK & Ireland for Geotab, explains how.
In response to the continuing climate crisis, companies, institutions and world leaders have agreed to make a collective effort towards achieving net-zero emissions. For many businesses, a cornerstone of this plan involves replacing their existing fleet and company vehicles with all-electric alternatives. Such a transition has many environmental and socioeconomic implications, producing a range of factors that businesses must consider when contemplating the rationale for and timing of the switch.
By evaluating how each of the tips below pertains to their own unique circumstances, businesses can ensure that the new adoption is as beneficial as possible for both their employees and the company.
1. Focus on the total cost of ownership (TCO)
For many, the up-front cost of an EV may be off putting, but shifting focus to the total cost of ownership (TCO) more accurately articulates the value of EVs. In addition to the purchase price, the TCO comprises factors over the course of the vehicle’s life, including maintenance, depreciation, incentives, national insurance contributions, and clean air zone fees. When summing up all of these factors, EVs hold the advantage over their combustion counterparts in the majority of cases.
For businesses operating fleets on a large scale, the upfront costs can be quickly offset by fuel and maintenance savings. Whilst the number of mechanical parts in petrol and diesel cars reaches into the thousands, EVs operate on as little as 20. Naturally, less parts to maintain and replace results in less expenditure. Telematics – the data analysis of all the various information produced by a vehicle – offers a means of calculating the TCO and a vehicle’s eligibility for a designated role within a fleet.
2. Take advantage of incentives
One significant contributor to an EV’s TCO is the number of monetary incentives available to encourage adoption. Governments are eager to reduce the carbon footprint of the transport sector in order to reach agreed net-zero pledges. As such, there currently are attractive EV grants and price reductions available, while financial penalties look set to increase and simultaneously discourage the continued use of combustion engines.
In the UK, fleet operators can receive a £1,500 for electric cars priced under £32,000, as well as a £5,000 grant for large plug-in vans and £2,500 for small vans. In Ireland meanwhile, up to €5,000 is made available for personal car drivers and €3,800 for businesses per vehicle. Incentives also extend to the cost of purchasing and installing EV charging points. Businesses switching to electric should make the most of these grants and tax reductions while they are available, as there is a distinct possibility incentives will be reduced as we move closer to eventual EV market saturation.
3. Plan charging infrastructure
Understandably, individuals and businesses are concerned over current EV charging point locations and methods of charging. It’s important for businesses to detail a plan for charging infrastructure and understand the options available. Home charging is the most efficient method compared to depot, public or destination charging. Charging your EV without even having to leave the house makes the ‘refuelling’ process much more convenient than filling up a petrol or diesel vehicle at the station. Thus, many companies across the UK are already installing home or work charge points for their employees. This has the added benefit of making more economic sense than installing infrastructure on the company’s premises.
On the cautionary side however, charging options are heavily dependent on location. For example, up to 60% of drivers in London don’t have access to off-street parking and therefore lack the facilities to charge at home. Additionally, when embarking on long-haul trips, en-route charging becomes a necessity. While public charging infrastructure across the UK and Ireland is improving, we are still not at the desired level of coverage. However, by utilising Geotab’s telematics, businesses can better understand the charging requirements of their vehicles and plan accordingly.
4. Preserve battery life
Battery degradation refers to the decrease of a battery’s ability to maintain charge over time. Whilst a valid concern, EV battery degradation has proven to be less consequential than what drivers typically fear – especially when conscious steps are taken to preserve battery life. Results from a Geotab analysis show that on average, vehicle batteries degrade by 2.3% every year, which is important information for business owners examining the suitability of a certain battery in fulfilling the needs of the fleet throughout its life.
By avoiding consistently charging a battery to its maximum level, regularly draining the battery to its minimum, limiting rapid charging events and reducing charging in extreme temperatures, drivers can greatly improve battery life and thus reinforce the residual value of the EV. Businesses can also seek reassurance in the mileage warranty that manufacturers offer on vehicle batteries. Knowledge and its implementation becomes crucial to strengthening the value of EVs.
5. Monitor driving style
As well as adjusting habits to preserve battery life, particular considerations of driving style will also improve the efficiency of the EV. Vehicle efficiency is measured by the ability to convert energy into forward propulsion. Generally, EVs convert over 70% of electrical energy to power the vehicle’s wheels, positioning them as significantly more efficient than ICE vehicles (converting less than 30% of energy). This efficiency can be further accelerated by maximising regenerative braking, the process by which EVs utilise the spinning of the electric motor to generate electricity feeding back into the battery.
Additionally, monitoring speed, travel over inclines and declines, weather considerations and the internal vehicle temperature, can all help to reduce the energy required. Regarding energy consumption, switching to electric is the smart choice. If drivers are conscious of how their driving style impacts efficiency, businesses can ensure they are getting the most of their vehicles.
Whether it’s comparing the total cost of ownership, reviewing available financial incentives or evaluating how driving habits can improve battery life and efficiency, the overall trend is that understanding and awareness are critical for businesses seeking to benefit most from the transition to electric. Educating new EV buyers with the tips and tricks to maximise the potential of their vehicles means transitioning to electric is not only environmentally advantageous, but also proves to be beneficial for both the owner and driver.
For more information on how to best manage an EV on an individual or organisational level, visit https://www.geotab.com/uk/fleet-management-solutions/evsa/
