Imagine you’re at the helm of a sizable fleet operation, managing dozens of vehicles across busy urban routes. You’ve been considering the transition to electric vehicles (EVs), not just for environmental reasons, but also because the economics are becoming increasingly compelling. Here’s how EV charging can actually generate revenue for your operation.
The Transition to EVs
You decide to transition your fleet to EVs, a move that aligns with your commitment to sustainability. According to the IEA’s Global EV Outlook, light commercial vehicles typically consume between 0.31 and 0.42 kWh per kilometre, depending on route, load, and operational conditions.
For a van operating about 25,000 km per year, this equates to an energy usage of approximately 7,750 to 10,500 kWh annually (0.31–0.42 × 25,000). Even at the lower end, this represents a substantial shift away from fossil fuels and opens the door to revenue opportunities through carbon credit programs.
Tapping into Carbon Credits
Carbon credits are tradable certificates that represent verified reductions in greenhouse gas emissions. In the context of fleet electrification, credits are generated when EV charging demonstrably displaces fossil fuel use. The number of credits depends on three factors: the amount of electricity consumed, the carbon intensity of that electricity, and the baseline emissions being replaced. Charging data is tracked directly through networked chargers and associated software, providing the verification needed for credit issuance. Once verified, these credits can be sold on regulated markets to fuel suppliers and other obligated parties. In practical terms, the more your fleet charges using low-carbon electricity, the more credits you earn.
Here are the main programs where fleets can capture this value:
- Canada’s Federal Clean Fuel Regulations (CFR)
- British Columbia’s Low Carbon Fuel Standard (LCFS)
- U.S. state programs: California LCFS, Oregon Clean Fuels Program (CFP), Washington Clean Fuel Standard (CFS)
In BC, the opportunity is even greater. Fleets can stack federal and provincial credits, potentially utilizing the same kWh for revenue through two programs. The LCFS credit value has recently ranged between $0.14 and $0.28 per kWh, according to Hypercharge’s LCFS FAQ. However, these values are subject to market volatility and regulatory changes. Actual payouts can fluctuate significantly depending on credit demand, trading dynamics, and policy updates.
Quebec and California also participate in the Western Climate Initiative (WCI), enabling cross-border credit trading within mature carbon markets.
Across Canada, fleets can participate in the federal CFR credit system. While live market data isn’t published, estimates from industry sources put the value at roughly $0.16 to $0.47 per kWh based on recent federal credit sales.
For our 8,750 kWh annual example (based on 25,000 km per year at an average consumption of 0.35 kWh/km), this could mean:
- British Columbia: Potentially between $3,500 and $5,500 per vehicle per year, thanks to the ability to stack provincial LCFS credits with federal CFR credits.
- Other provinces: While no specific provincial credits program currently exists, fleets can still benefit from the federal Clean Fuel Regulations credit program. The revenue will depend on current credit market prices and the carbon intensity of the local grid, which influences how many credits each kWh generates.
These values can fluctuate based on market conditions, regulatory updates, and the carbon intensity of electricity in each province.
The Broader Financial Impact
This isn’t just about offsetting electricity costs. It’s about creating a new revenue stream. The funds generated can:
- Help finance EV acquisition costs
- Support infrastructure investments like charging stations
- Offset ongoing operational expenses
For fleets with dozens or hundreds of vehicles, the cumulative impact can be substantial.
7Gen’s Role
Carbon credit programs can be complex, from tracking energy use to registering with credit systems and selling credits in fluctuating markets. This is where 7Gen comes in:
- We track your fleet’s electricity use with precise data
- We register and manage your credits under applicable programs
- We find the best monetization opportunities
- We align incentives with your fleet’s operational profile
Our goal is to make sure every kWh your fleet consumes delivers maximum environmental and financial return. And because the ability to capture these credits depends on reliable charging infrastructure, we also help design, install, and manage charging systems that maximize both operational efficiency and revenue potential.
Why This Matters Now
Regulatory frameworks and incentive programs are evolving quickly. Early adopters of EV fleets in provinces like BC and Ontario are already seeing measurable returns from the sale of carbon credits. As clean fuel standards expand and credit markets mature, the potential revenue could grow. At the same time, program rules may tighten, making early participation advantageous.
Next Steps
If you operate a fleet in Canada or the U.S., the opportunity is clear:
- Reduce emissions
- Cut operating costs
- Unlock a new revenue stream
Contact 7Gen to explore how transitioning to EVs could fit into your operational model, and how we can help turn your charging activities into a source of income.
