Many roadblocks to transitioning to an all-electric fleet have been overcome in the decades since the first electric vehicles were introduced.
Whether EVs are used for personal transportation or transporting large products, there is no doubt that they can compete with conventionally powered cars. Charging infrastructure is quickly expanding, with charging stations now outnumbering fuel stations.
The expense of converting a fleet to electric cars is a big issue for corporations. According to our findings, 77 per cent of fleets polled listed cost as an essential element in determining whether or not to go all-electric, with 63 per cent citing government subsidies and assistance as necessary.
Although the deadline for acquiring new internal combustion engine vehicles is quickly approaching, not every company will be able to justify the cost of changing their fleet, especially beyond 2021, when their funds may deplete.
There’s more to consider than simply the vehicle’s ticket price, such as:
▪ Costs of energy and fuel in the long run
▪ Tax \Insurance
▪ Residual worth
▪ Adding charging stations
▪ Repair, maintenance, and service
There’s also a chance that the government would raise EV taxes in the future to compensate for the loss of money from fossil fuel taxation, which presently brings in £28 million per year to the Treasury.
The time spent charging electric vehicles is a considerable disadvantage when compared to fossil fuel vehicles. Even while the time it takes to charge a car completely has decreased significantly and may continue to decrease in the future, you can measure this in hours rather than minutes. Your staff may be unable to work during this period, and the cost of missed production must be calculated.
There is assistance available
Although this may appear to be a deterrent, there is assistance available for businesses looking to transition to an electric fleet.
Government subsidies are in place to assist UK firms in meeting the country’s carbon reduction targets. The Plug-in Vehicle Grant is the most important of them, with deductions ranging from £3,000 to £8,000 on vehicles ranging from mopeds to HGVs. The cost decrease is factored into the dealer’s price, so you’ll be saving money right now.
Second, the Workplace Charging Scheme allows you to deduct up to £350 off the cost of installing an electric vehicle charging station at your workplace, up to a total of forty. This may enable you to charge employees who are increasingly moving to electric vehicles, but it will also let businesses with fleets of vans or trucks charge them while they are not in use.
Finally, while the Electric Vehicle Homecharge Scheme may not appear to be very useful for businesses, if you have corporate cars in your fleet, your employees will be able to benefit from it.
Long-term planning
It’s vital to note that an electric fleet will save you a lot of money on fuel. Although public charging stations are more expensive than those found in homes or businesses, a Nissan Leaf driving 10,000 miles a year will only spend £720 on charging, compared to £1,350 for a petrol-powered Ford Focus. The cost of fuel for a Nissan Leaf is just £300 if it is charged 70% of the time on a home or business charger. When applied to an entire fleet of cars, the savings may amount to thousands of pounds.
If you have recently invested in company cars, why not enquire about fuel cards to make your fleet run more smoothly? Fuelcards.com are a leading fuel card supplier in the UK and Ireland and help many business fleets. Get in touch today to see what we can do for your business.