By Stephen Israel, Vice President of Operations, ChargeTronix
October 2, 2024
Stephen Israel, ChargeTronix VP
The transition to electrified commercial vehicles, in addition to complying with stricter emissions limits implemented by the state and federal agencies, has the potential to significantly improve fleets’ bottom lines. In fact, according to a McKinsey report analyzing the economic viability of commercial electric vehicles, fleets will likely see cost benefits from Inflation Reduction Act subsidies as well as reduced reliance on diesel gasoline and less need for engine maintenance.
However, similar to the passenger electric vehicles sector, which requires an increase of 10 times the current number of chargers in the state of California alone to meet demand, fleets lack the charging infrastructure necessary to fully rely on electrified commercial vehicles. This gap has historically hindered fleets from progressing towards full electrification.
Fortunately, due to technological and logistical advancements in charging infrastructure, the U.S. is at an inflection point in its transition to electric as charging infrastructure becomes increasingly scalable. To make the most of this moment and reap the full economic benefits of electrification, here are some strategies that fleets can implement to efficiently and impactfully move to entirely electric operations:
Capitalizing on Public-Private Partnerships
Transitioning long-distance commercial vehicles to electric remains a challenge given the majority of EV charging stations in the U.S. are concentrated in urban areas. In addition, uneven concentrations of charging stations, tied to lack of planning and space for heavy duty vehicles, leads to congestion and longer wait times in busy areas.
In the past year, targeted policies like the Inflation Reduction Act (IRA) and financial incentives such as federal tax credits and state rebates have made it more feasible for private companies to expand their charging infrastructure, despite the substantial costs involved. To take advantage of these opportunities, fleets can continue to build and nurture partnerships with governments to ensure that their chargers can be readily available en route.
There are numerous programs established throughout the country that prioritize these incentives. In California, for example, the CALeVIP program enables businesses to receive rebates that cover equipment, planning, and installation in exchange for installing publicly available EV chargers in their community. Fleet operators can also take advantage of tax credits and incentives offered by policies like the IRA in order to scale their charging infrastructure. These types of incentive programs can lower the cost of electrification significantly.
Fleet managers should always check their eligibility for state and federal programs like these, as they can decrease the cost of electrification significantly and ensure that fleet use cases are prioritized in charger buildouts.
Prioritizing Fast-Charger Technology
Compared to passenger vehicles, more power is required for heavy duty vehicles to receive the same amount of range per charge. As a result, commercial vehicles experience significantly more downtime when relying on the same charging rate from the same chargers.
Strategic use of fast-charging technology is critical to ensuring that fleets are running as efficiently as possible. Fortunately, DC fast chargers (Level 3) are increasingly available and capable of reducing downtime by as much as 85 percent. By simply adding one DC charger for every 10-20 AC chargers per station, hubs will have the ability to fully charge trucks during a mid-day stop.
DC fast chargers at hub locations also add more resilience and flexibility to the charging process, enabling vehicles to charge when they are scheduled for maintenance. As Megawatt Charging Systems (MCS) continue to become the new fleet standard, Class 6 – 8 medium and heavy-duty vehicles will begin to benefit from at least 1.5 mW to reach parity with diesel fueling rates. As the MCS becomes more readily available, operators should prioritize incorporating it into their buildout plans.
As EVs continue to gain popularity, smart distributed charging solutions will allow for power sharing and dynamic adjustments between multiple vehicles, which will ideally improve charging efficiency.
Scaling Infrastructure Planning and Development
Infrastructure planning and development can be daunting for managers, especially in the midst of constant innovation within the charging industry. With effective planning and rollout strategies, however, this process can be made more efficient and approachable.
Adding chargers after initial infrastructure has been installed is comparable to starting a civil construction project from scratch without planning. For this reason, operators should create the most flexible charging network possible when electrifying their fleets and account for the required permitting, easements, engineering, and material sourcing early on.
First, fleet operators should account for the amount of power needed for each vehicle based on the required range. New smart chargers utilize algorithms that can address off-peak demand in the future.
Then, operators can evaluate charging site locations using previous data on fleet routes and usage patterns so companies can select locations that set them up for long-term success. Ideally, this information will also leave opportunities to increase the number of chargers at each site in case fleets grow as well.
Once infrastructure buildout has begun, small pilot programs in a phased implementation plan can help identify potential problems in infrastructure development and allow leaders to analyze performance immediately. This can also help drivers get used to the new system and keep operations functioning consistently while the transition is underway.
Amid the implementation of policies like the California Air Resources Board’s Advanced Clean Fleet regulation that require manufacturers to exclusively sell zero-emissions medium- and heavy-duty vehicles in California by 2036, it’s just a matter of time before electric fleets become the standard. In order to stay competitive, take full advantage of the cost benefits of electrification, and make progress towards regulatory compliance, fleet operators should begin evaluating their electrification strategies as early as possible. By better understanding the charging landscape and available technology, this transition will only become more seamless.
