Recent analysis of fleet total cost of ownership (TCO) has revealed that electric trucks and cars are saving fleet owners 9% on operational costs. Using a tool built by the Electronification Coalition and the Dashboard for Rapid Vehicle Electrification, RMI analyzed data from various scenarios and found that the TCO of fleet EVs is lower compared to equivalent gas-powered cars, even with the inclusion of charging infrastructure costs.
Although the analysis only included the U.S. federal tax incentive for EV purchases, several states also have their own EV and charging incentives and subsidies that can be stacked on top of federal subsidies.
Aside from the financial savings associated with purchasing electric vehicles, making the switch from petrol and diesel vehicles to EVs cuts tailpipe emissions by 100% and eliminates more than 75% of the climate pollution caused by cars, including the emissions caused by generating electricity. Furthermore, the data showed that transitioning to electric cars lowered fine particulate pollution by 50% per vehicle and nitrogen emissions by 90%.
When fleet owners replace large portions of their fleets with battery electric cars (BEVs), many of these financial and environmental benefits are compounded. Fleets are more suited to electrification as their owners typically have the substantial capital required to purchase EVs en masse and obtain enough space to charge them overnight.
Since fleet managers factor in and record every metric that affects fleet cost and performance, such as vehicle purchase costs, depreciation, financing, and expected repair, maintenance, and fuel costs, analysis of fleet TCO in relation to electric cars yields actionable results. In this case, RMI compared the TCO of electric cars to equivalent internal combustion engine cars (ICE) in five use cases: patrol cars, private security, large delivery companies, paratransit, and construction contractors.
Every comparison involved yearly mileage as well as total expected lifespan for electric cars and their closest ICE equivalent such as the Ford F-150 Lightning electric truck for construction contractors and the Ford F-150 truck. The Dashboard for Rapid Vehicle Electrification tool allowed RMI to adjust factors such as diesel, gasoline, and electricity costs.
RMI found that electric vehicles allowed fleet owners to cut their operational costs or enabled cost parity in all use cases when U.S. fuel prices averaged at least $3.50 per gallon. With the exception of delivery vehicles, all scenarios achieved EV cost parity or savings when the cost of installing Level 2 charging infrastructure was included.
This data is welcome news to entities like Tesla Inc. (NASDAQ: TSLA) that are looking to deepen their penetration of the EV market by attracting more fleet owners to their brands.
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