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Discover the tips for calculating and managing the costs of switching to and owning an EV car fleet. Learn from the leaders in business mobility solutions.

Tips for Managing Electric Vehicle (EV) Costs for Your Fleet

<h2>EV cost management</h2>
<p>As we move into a new era of transportation, more and more businesses are pivoting their fleets to EVs. </p>
<p>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.</p>
<p>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.</p>


<h3>What are some of the best ways to account and forecast for EV charging costs?</h3>
<p>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.</p>
<p>For example, the energy price cap (the maximum price suppliers can charge for domestic electricity) is reviewed twice each year by Ofgem with <a href="https://www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-energy-price-cap-affects-you">changes to price caps announced in advance</a>. If your drivers commonly use home charge points for their vehicles, this can give useful advanced warning of likely changes to their charging costs.</p>
<p>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.</p>


<h3>How can I calculate EV fuel cost per mile?</h3>
<p>The calculation for the cost per mile of an EV is fairly straightforward:</p>
<p>1. Look up the how much electricity your vehicle consumes per mile, which is usually given in miles per kilowatt-hours (mi/kWh).<br />
2. Divide this by the average cost of 1 kWh of electricity from your charging source (usually provided in pence/kWh).</p>
<p>However, the cost of electricity will vary (sometimes significantly) depending on the source, so you need to be careful about what you use for this figure. A home charge point used during ‘off-peak’ hours will usually cost significantly less than a public Rapid charge point.</p>


<h3>What do I need to factor in?</h3>
<p>Several factors come into play when managing and forecasting EV charging costs:</p>
<ul>
<li><strong>Charging habits:</strong> As mentioned, electricity costs vary based on location, time of day, and the provider. Check your tariff (for workplace charge points), your employees’ tariff (for domestic charge points), or the average rates for the most likely public charge providers/locations your drivers will use.</li>
<li><strong>Vehicle efficiency:</strong> How many miles your EV can travel on a single kWh of electricity will significantly impact your cost per mile. Remember, a longer range/larger battery doesn't necessarily mean better economy.</li>
<li><strong>Usage patterns:</strong> The total mileage your fleet racks up, how frequently the vehicles are used, and how often they're charged can all influence the overall cost.</li>
</ul>


As someone navigating the transition to electric vehicles in your business, a primary concern is to ensure the cost-effectiveness and efficiency of your fleet. Here are a few key considerations to keep in mind:

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.

Our eMobility experts provide personalised consultations to understand your business needs. They'll identify key challenges or goals, such as CO2 or cost targets, and conduct an in-depth assessment to determine if and what type of electric vehicles would best suit your fleet. There's no obligation to proceed further – and if they don't believe EVs are right for your situation, they'll be straightforward with you.

Once a strategy has been agreed upon, our experts will help transform your electrification vision into a reality. This includes ordering, installing, and maintaining charging stations – whether at your workplace, at your employees' homes, or capitalising on the ever-improving public infrastructure.

Managing a future-ready fleet calls for smarter management strategies. Our team will continuously support you and your company in ensuring the smooth running of your fleet. From advanced reporting services to flexible CarSharing solutions, we'll do everything necessary to maximise efficiency, minimise expenses, support driver satisfaction, and help you achieve your targets – no matter how demanding they may be.

<h2>Get in touch</h2>
<p>Embracing an electric fleet is not just about contributing to a greener future, but also about efficient and cost-effective operations. </p>
<p>We're committed to providing you with the best possible solutions, guidance, and support.</p>
<p>Reach out to Alphabet today on <a href="tel:01252 976 010">01252 976 010</a> to learn how we can help devise a comprehensive charging strategy tailored to your business.</p>
