Shifting to an all-electric fleet has many benefits, operationally and environmentally. Electric vehicles are cutting down on our yearly carbon emissions and reducing our species footprint on the planet. This same technology is improving the efficiency of our fleet operation in terms of energy used. With so many obvious benefits, why do the majority of our fleets still use conventional combustion engines?
One main reason is usually purchasing cost. But that should not be the deciding factor, as the overall cost of ownership is more financially attractive. Electric vehicles have a significantly higher sticker price than their combustion counterparts. Their innovative drivetrain, battery, and dispatch technology build up the initial cost for vehicles that fleets must bear. Fleet managers must know where their costs will be increasing when considering switching to an electric fleet.
For example, a recent Southern California Airport client converted its commercial fleet to electric, creating a 60% increase in their monthly loan payment cost. But, considering the other expenses that will go down over time, the total cost of ownership makes more sense.
Drivetrain Efficiency
To understand how electric shuttles are more energy-efficient, we must first look at the problem with internal combustion engines. Of the energy produced from an internal combustion engine, only 15% is used to propel the vehicle forward. This means you are losing over 85% of your potential energy to heat loss, idle loss, and drivetrain loss. With over 1,500 moving parts in the drivetrain alone, this is not a surprise--and neither are the long lists of repairs that come with them.
Compared to an electric vehicle, which only loses 20% of its energy to the drivetrain and resistance, it is clear electric is the efficiency winner. But what does being 5 times more efficient with your vehicles mean to your budget and bottom line?
For parking operator Ace Parking and their fleet at the San Diego International Airport, their 29 electric shuttle conversion translates to $20,000 in savings per year per vehicle and 5 million pounds of Co2 emissions saved. For another client, they are seeing a staggering 62% decrease in their overall fuel cost yearly which had made up 50% of their expenses before conversion.
Reduction in Maintenance Costs
As fleet managers, we know how impactful maintenance is to your fleet's total cost of ownership. Internal combustion engines use complex systems that require thousands of moving parts. While the focus on engineering combustion engines resides with efficiency and reliability, maintenance still needs to be done regularly to prevent issues down the road.
Electric vehicles save fleet managers time and money by extending the recurring maintenance cycles through simplifying engineering. With a simple drivetrain, one gear, and a brushless motor, electric shuttles are as maintenance-efficient as they are energy-efficient. There is no oil, transmission fluid, filters, or spark plugs that need replacement to maintain a vehicle's reliability. Recommended replacement cycles for electric shuttles extend your operational use over 100% so you can keep your fleet operating at full capacity without the worries of consistent maintenance hurting your drive cycles.
Overall our most recent Southern California client will reduce their total cost of maintenance by 25% yearly. This reduction will only represent 5% of their total savings after conversion but will save them countless hours waiting for maintenance to be completed.
Available Subsidies
Many cities, states, and energy companies have created subsidiaries to increase our electric fleet conversion savings. These subsidiaries will apply to your vehicle purchase or the implementation of infrastructure needed to operate their fleet.
These same states have put in place mandates requiring commercial fleets to make the full switch to electric. For example, the California goal for all Zero-Emission airport shuttles is set to have a complete conversion mandated by 2035. While there is still time to make your conversion, it is likely that the subsidies available now will run out by then.
For example, our client looked at an increase in their monthly vehicle loan of 60% when we began their conversion process. After receiving subsidies, that cost increase was almost cut in half, only increasing 36% percent monthly. Coupled with their maintenance and fuel savings, this totals out to an instant 17% reduction in the cost to run their operation.
Final Thoughts
Electric shuttles are reshaping the way we look at our fleet's cost and our operation's efficiency. The cost-saving benefits from solving problems related to energy efficiency, carbon output, and recurring maintenance costs will only become more enhanced. As you research your options for electrifying your fleet, make sure you are looking at long term costs and savings, not just the sticker price.