Transitioning small-to-midsize fleets to electric vehicles (EVs) comes with its own set of unique challenges. Yet commercial fleets considering EV adoption can achieve big benefits—lower costs, fewer emissions, and better customer satisfaction.
With strategic planning and the right approach, small and midsize fleet operators can successfully implement EV solutions and unlock significant advantages. A well planned transition enables operators to maximize the benefits of electric vehicles while building a more efficient – and sustainable- fleet operation.
Common challenges (and solutions!) in EV adoption for fleets
Charging infrastructure
One of the biggest challenges for small and medium fleets is setting up the right EV charging infrastructure from the get-go. Unlike large companies with ample resources, small fleets often have to work within tight budgets and space constraints.
77% of small fleet owners identified the absence of public infrastructure as a barrier to EV adoption, according to Natural Resources Canada.
And there’s no wonder. The cost of on-site installation can differ significantly, starting at approximately $65,000 for an overnight charger with a 50 kW power output, which can charge one truck overnight. At the higher end, fast chargers with 1 MW power output, capable of charging multiple vehicles, can cost up to $1 million.
Common Charger Types and Costs
Charger Type | Charger Cost |
Overnight, Level 2 (5-20 kW) | $5,000 to $20,000 |
Overnight, Level 3 (50-100 kW) | $50,000 to $75,000 |
Level 3+ (150-350 kW) | $100,000 to $250,000 |
Ultra-fast (750 kw to 3 MW) | $1,000,000 |
Private depot charging is the optimal solution for fleet EV operations, offering centralized management and scheduled overnight charging during vehicle downtimes. The key advantages of private charging include:
- More cost-effective operations
- Better reliability than public infrastructure
- Greater control over charging schedules
- Ability to match infrastructure to specific fleet needs
Upfront costs of electric vehicles
Many fleet managers worry about the high cost of electric fleet vehicles. It’s true that electric vehicles tend to have higher upfront costs compared to traditional vehicles. However, there are incentives and grants available that can help offset these initial expenses.
Fleet managers should look into local, provincial/state, and federal incentives that can help offset both the cost of vehicles and charging infrastructure. These incentives can significantly reduce the financial burden of EV adoption.
For instance, the U.S. federal government offers tax credits up to $7,500 for eligible new electric vehicles, and up to $4,000 for qualifying used EVs.
Meanwhile in Canada, programs like the Zero Emission Vehicle Infrastructure Program (ZEVIP) have offered an RFP-based funding initiative to help develop national-wide EV charging infrastructure.
Plus, EVs save money over time thanks to lower maintenance costs and the removed dependence on fuel.
Electricity rates and programs
High electricity rates can be a significant barrier to EV adoption and private charger installation. Commercial electricity rates are often based on peak demand, meaning fleet operators pay higher rates even if their overall energy use is relatively low.
But programs like British Columbia’s discounted electricity rates for fleets are steps toward addressing these concerns. Some utilities, like Pacific Gas & Electric, have programs that help with the adoption of electric vehicles and installation of charging hardware through rebates and incentives on top of special utility rates.
Range anxiety and route planning
Another common concern for small and medium fleet operators is range anxiety—the fear that vehicles won’t have enough power to complete their routes.
To optimize EV fleet operations, prioritize depot charging during scheduled downtime periods while using public charging only as an emergency backup. Smart charging management through SOC monitoring, notifications, and range tracking ensures reliable vehicle availability while minimizing costs and schedule disruptions. By aligning your charging infrastructure with specific vehicle types and usage patterns, you can maintain efficient fleet operations without compromising service quality. An intelligent fleet management software can make all the difference in your operations.
Plus, many fleet-friendly EVs now have ranges that surpass the needs of their duty cycles, making them more than capable for commercial routes.
- The Ford E-Transit, a popular electric van for delivery fleets, has an estimated range of 159 miles on a single charge.
- The Rivian EDV 700, used by fleet operators such as Amazon, boasts a range of up to 153 miles per charge.
- The Brightdrop ZEVO, a widely available delivery truck for small fleets, can get up to 272 miles of range (combined city/highway).
- The Volvo VNR, a class 8 transport truck, offers a range up to 275 miles, depending on duty cycle.
- The Freightliner (Daimler) eCascadia, a class 8 transport truck, offers up to 230 miles, depending on model and duty cycle.
These advancements in battery technology are addressing range concerns and making EVs more practical for fleet operators managing daily routes or long-haul trips.
Education and resources for fleet managers
Many fleet operators are unfamiliar with the basics of electric vehicles, including how they are charged and their operating requirements.
The same Natural Resources Canada study revealed that 44% of small fleet operators and 60% of large fleet operators see “unfamiliarity with technology” as a major barrier to EV adoption. The lack of clear, accessible information about zero-emission vehicles, infrastructure requirements, and cost-sharing formulas adds to the hesitation.
While the information out there can feel overwhelming, you don’t have to electrify your fleet alone.
Partnering with experts in fleet electrification can make the process smoother. You will be guided through everything from charging infrastructure, vehicle selection, and taking advantage of available incentives.
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Electrifying your fleet might feel like a jolt, but with the right plan, the transition can be as smooth as flipping a switch.
7Gen offers comprehensive support for small and midsize fleets. Learn more about our end-to-end solution, streamlined into one simple, monthly payment.