Charlotte Argue: Breaking down cost barriers for electric fleets

The transition to fleet electrification and decarbonization can often feel like navigating a complex maze filled with unknowns. Part of my role at Geotab is to help demystify this process. Vehicle data can be a valuable tool to help you achieve the most success with electrification and discover opportunities to reduce cost barriers. 

Where to start your EV journey

Too often, the conversation around fleet EVs becomes fixated on the perceived impossibilities or the most daunting applications – particularly in heavy-duty trucking – with attention drawn to range limitations, payload impacts, or auxiliary load drain. While these are valid concerns being addressed by ongoing innovation, a more immediate and impactful strategy exists: start where the technology makes the most sense right now. 

By focusing on applications where EVs can readily succeed, we build industry capacity, mature the market and pave the way for that next wave of innovation.

Additionally, there is a distinct opportunity for electrification with fleets, or segments of fleets, that fit a specific profile: 

• vehicles that return to base frequently
• cover manageable distances, and
• have sufficient dwell time at the depot for charging.

Pinpointing opportunities for fleet electrification

A new Altitude by Geotab report revealed that in the U.S. there is significant potential for truck electrification. Not all heavy-duty trucks are long haul. A large number of return-to-base trucks have duty cycles that fit within the range capabilities of today’s EVs. 

The study found that 58% of medium-duty trucks and 41% of heavy-duty trucks drive less than 250 miles between visits to their depots — making them promising candidates for electrification. Certain regions show even higher concentrations of these EV-suitable routes. Couple this with the finding that heavy-duty trucks have an average depot dwell time of around 5 hours, and the opportunity for convenient home-based charging becomes compelling. 

Medium-duty trucks that could be electrified given access to depot charging and 250-mile range electric trucks (Altitude by Geotab map).

Heavy-duty trucks that could be electrified given access to depot charging and 250-mile range electric trucks  (Altitude by Geotab map).

While these aggregated insights highlight widespread potential, the true starting point for your fleet is an analysis of your own operational DNA – considering factors like duty cycle, seasonality, typical payloads, auxiliary load demands, terrain, and average speeds. This granular analysis ensures you select vehicles and routes that can perform their duties cost-effectively as EVs.

The Goldilocks dilemma: Rightsizing power for EV charging infrastructure 

Once you've identified the best-fit vehicles and routes, the next critical step to breaking down cost barriers is getting your electric vehicle charging infrastructure right – from the very beginning. Charging costs can be incredibly variable, and a common misstep is over- or under-building the number of chargers and/or their power capacities. 

This is the "Goldilocks" dilemma: overbuild, and you incur unnecessary capital and operational expenses. Under-size your charging infrastructure, and you risk vehicles not being ready when needed, leading to costly operational disruptions. 

The solution? Don't guess! Guessing leads directly to unnecessary costs. Analyzing your specific duty cycles allows you to determine the optimal ratio of chargers to vehicles, the actual power required, and the smartest charging strategy – whether that’s relying solely on depot charging, incorporating off-site options, or leveraging opportunity charging during the day.

Unleash your electric potential: Maximizing EV fleet output

Once EVs are deployed, to truly realize your return on EV investment, those vehicles need to be put to work effectively.

Our data shows a tendency for EVs to be underutilized assets. EVs are a significant investment. If you're not using them, you're losing out on potential savings and emissions reductions. As our Senior Product Manager, Kevin Morency says, “The more that EVs are driven, the more money they save. If you’re managing EVs and you see data that vehicles are starting their charging session with battery left, it’s a sign that those EVs aren’t being used to their fullest.” 

Often, a sense of "range anxiety" can lead to EVs being assigned only to the shortest routes, limiting their impact. The goal should always be to stretch the EV's capability to replace as many diesel miles as possible, thereby maximizing both your financial return and your emissions reductions.

Interestingly, we see significant opportunities for optimization here. For instance, in an analysis of thousands of EVs, 34% of charging sessions for heavy-duty electric trucks begin when the battery's state of charge (SOC) is already above 70%. This suggests many vehicles could be driven further, maximizing their utility before needing a recharge.

Starting State of Charge comparison for light-duty vehicles, medium-duty and heavy-duty trucks.

Data in the driver's seat: Optimizing EV operations & charging costs

Effectively managing an EV fleet increasingly requires the use of technology and software. Telematics systems provide crucial real-time visibility into each vehicle’s location, charging status and state of charge. This data allows fleet managers to better prioritize charging based on operational needs and integrate this information with dispatching, improving the likelihood that vehicles are ready when required.

These systems can also improve reliability by issuing proactive alerts. For example, a notification can be sent if a vehicle scheduled for charging hasn't been plugged in, or won’t be charged on time, allowing issues to be addressed promptly before they impact vehicle availability.

Furthermore, combining telematics data with smart charging software enables more strategic energy management. This integration allows for the optimization of charging to help manage electricity costs, often by avoiding peak demand periods. Importantly, it ensures that this optimization considers the specific operational requirements of each vehicle, balancing cost savings with the fleet's daily demands.

Utilizing these tools makes EV fleet operations more optimized and drives a stronger return on investment.  

Making EVs work: Your data-driven roadmap

The path to successful fleet electrification isn’t about waiting for a future silver bullet; it’s about making strategic, data-informed decisions today. Leveraging vehicle data insights is key to breaking down cost barriers and achieving your goals. 

Focus on:

• Finding the best-fit duty cycles: Identify the routes and vehicles where current EV technology already excels within your operations.
• Right-sizing your charging infrastructure: Base your setup on your unique operational data to avoid overspending or under-powering.
• Optimizing daily usage and charging: Ensure your EV assets are working effectively to maximize both their utility and your return on investment.

By taking a pragmatic, data-driven approach, you can confidently navigate your fleet's transition, achieve tangible decarbonization results, and make electric vehicles work effectively and economically for you right now.