EV cost management
As we move into a new era of transportation, more and more businesses are pivoting their fleets to EVs.
The shift towards more sustainable vehicles brings many benefits, including reduced emissions and lower maintenance costs. However, it also presents new challenges, particularly around managing and forecasting the cost of charging these vehicles.
In this blog post, we aim to answer these burning questions and provide you with practical tips on how to account and forecast for EV charging costs.
What are some of the best ways to account and forecast for EV charging costs?
Managing EV charging costs involves understanding the factors that influence them. Key among these is the cost of electricity, which can vary based on location, time of day, and the provider.
For example, the energy price cap (the maximum price suppliers can charge for domestic electricity) is reviewed twice each year by Ofgem with changes to price caps announced in advance. If your drivers commonly use home charge points for their vehicles, this can give useful advanced warning of likely changes to their charging costs.
Other factors include the efficiency of your specific EV models and the distance they typically cover. By tracking these variables, you can establish a baseline cost and adjust your forecasts as necessary.
Getting a handle on EV costs
Unlike petrol or diesel vehicles, where fuel efficiency is generally consistent across models, electric vehicles can vary significantly in their energy efficiency. It's crucial to understand the efficiency (in the form of the mi/kWh) of each EV model in your fleet and to factor that into your cost forecasts.
Electricity costs fluctuate based on location, time of day, and provider as well as due to national and international factors. Keeping track of these changes and adjusting your charging strategy accordingly can lead to significant cost savings.
Investing in your own charging infrastructure can provide long-term cost savings, particularly if your fleet vehicles are frequently charged at the workplace or at drivers' homes. In many cases, it's possible to find lower electricity tariffs for these kinds of setups.
While the focus of this discussion is on EV charging costs, it's important not to lose sight of the overall cost picture. Remember, electric vehicles often have lower maintenance costs and benefit from various tax incentives, which can offset higher charging costs.
Implementing fleet management solutions can help streamline operations, improve efficiency, and ultimately reduce costs. This can include everything from telematics systems, which provide real-time data on vehicle performance and usage, to advanced reporting services and CarSharing solutions.
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