Cost savings for fleet electrification
Transitioning to electric fleets comes with its costs – that's clear. Charging stations, expansion expenses, consulting services, and, not least, the electric vehicles (EVs) themselves. Precisely because significant initial investments are required, potential cost pitfalls, as well as savings opportunities, are crucial. In this article, we delve into the cost drivers, examining how and where savings can be achieved.
Systematically identifying all associated costs for the electric fleet is crucial for effective planning and cost-effective operation of the EV fleet. Some costs are comparable to those of vehicles with internal combustion engines, while others, such as charging costs, are new due to varying charging tariffs and infrastructures at different charging stations. Factors like charging options and infrastructures play a crucial role. Here, we summarize the key points regarding expected costs in the electric fleet and explore how acquisition and operating costs can be kept low.
Acquisition costs for electric vehicles undoubtedly rank among the significant cost drivers during the transition process. Currently, these vehicles are often more expensive than their conventional counterparts. Businesses have the flexibility to choose between purchasing and leasing electric vehicles. These options enable better financial control and allow tailoring the transition process to individual needs. The number of vehicles and the chosen models should align with a thoroughly assessed mobility demand. Cost savings can be realized through optimal vehicle utilization and selecting suitable models.
In addition to the vehicle costs, infrastructure expenses play a crucial role in the overall transition to electric vehicles. Specifically, the acquisition, installation, and commissioning of charging stations, wallboxes, and electrical installations require additional investments. These costs can range from 500 to 2,500 euros per charging point, plus installation. To save in this area, a meticulous analysis of when and where vehicles need to be charged, considering the downtime of EVs, is essential. Thoroughly determining mobility demand allows for reducing the number of required charging points and, consequently, expansion costs. Calculation tools like an EV fleet simulation should be utilized during the planning phase of the charging infrastructure to determine an accurate need for charging points.
The costs of charging electric vehicles are crucial and can vary significantly. This is due to different tariffs and billing methods at public charging stations. Costs can fluctuate between 4 and 40 cents per kilowatt-hour. While fast-charging stations may be more expensive, they are often the only option on the road. Incorrect tariff choices or a lack of comparison can lead to costly results. Minute-based fees should also be considered. In terms of cost efficiency in charging electric vehicles, charging in the company parking lot or at the depot offers clear advantages. Utilizing flexible electricity tariffs, charging during off-peak hours, or when abundant self-generated power is available can significantly reduce the electricity cost factor. Implementing effective energy and charging management for electric fleets enables automatic charging when electricity prices are particularly favorable and self-generated power is available. This allows companies not only to act ecologically but also to financially benefit from an intelligent charging infrastructure.
Maintenance costs for electric vehicles are significantly lower compared to internal combustion engines. With fewer moving parts, overall wear and tear are reduced, resulting in lower costs. Currently, maintenance costs for EVs are estimated to be 35% lower than conventional vehicles. The most expensive component in an EV is the battery. Charging EVs in a battery-friendly manner can prevent premature battery replacements or expensive new acquisitions. Charging management positively impacts battery lifespan.
Naturally, electric vehicles also require insurance. The associated costs, as with internal combustion vehicles, are not precisely quantifiable due to numerous criteria. Factors such as vehicle model, age, and individual driver characteristics play a significant role in determining insurance costs. A careful comparison of various insurance offers is crucial to avoid unintentionally selecting unfavorable or financially burdensome plans.
For pure EVs first registered between May 18, 2011, and December 31, 2025, the vehicle tax is exempt for up to ten years from the first registration. However, buyers of EVs currently being purchased should consider that the tax exemption is limited until December 31, 2030.
Advantages are also present in company car taxation. For electric cars, only 0.25% of the gross list price is considered for taxation until 2030 – if the gross list price does not exceed 60,000 euros (expected to increase to 70,000 euros by 2024). If the electric company car is more expensive, 0.5% of the gross list price counts as a taxable benefit.
Seeking consulting services early in the process of electrifying the fleet is a wise investment. The right expertise can lead to significant savings throughout the entire process. Precisely calculating the optimal utilization of the charging infrastructure in advance can have a massive impact on acquisition and expansion costs.
Thorough analysis and forward-thinking planning require a precise overview of expected costs and early considerations on how to minimize these costs effectively. Careful tariff selection and smart tools such as apps and charging management can help keep cost factors low. Precise planning based on mobility demand can result in significant savings. It is worthwhile to seek expertise at this project stage.
For those looking to delve deeper into the topics of cost factors and savings opportunities, you can register for the free webinar Reducing Fleet Costs through Intelligent Charging Management (webinar in German language).
