Electrifying fleets has become a key strategy for organizations across various sectors, including corporations, municipalities, and academic institutions. With mounting pressure to reduce greenhouse gas emissions, and a growing recognition of the long-term cost savings associated with electric vehicles, fleet managers are increasingly considering transitioning from internal combustion engine vehicles (ICE) to EVs.

Fleet electrification offers multiple advantages, from lowering carbon emissions to reducing fuel and maintenance costs to enhancing brand image and adhering to regulatory compliance standards. But switching to an electric fleet is only as effective as your charging infrastructure. Deploying an engineered solution is critical to success, and proper design is equally important to fleet operations as the vehicles themselves. Reliable and efficient charging will help your fleet meet their operational needs.

This guide is designed to assist you in evaluating the key components of EV charging infrastructure so your team can make informed decisions about EV charging. We’ll cover the benefits of fleet electrification, implementing a successful EV charging solution, the installation process, and the available financial options for your fleet.

Advantages and Benefits of Fleet Electrification

Before delving into the particulars of fleet charging infrastructure, let’s first explore some advantages of transitioning from a gas-powered fleet to an all-electric fleet.

Reduced Maintenance Costs

One of the most compelling reasons for fleet electrification is that electric vehicles cost less to maintain than ICE vehicles. EVs have fewer moving parts than conventional vehicles, meaning there are fewer components that require regular servicing. Fleet operators can expect a lower total cost of maintenance (TCM), which includes costs related to oil changes, transmission repairs, and other routine work that is essential to keep fleets on the road.

Lower Greenhouse Gas Emissions

While gas-powered vehicles emit significant amounts of carbon dioxide and other pollutants, EVs produce zero tailpipe emissions. Shifting to electric vehicles can have a meaningful impact on an organization’s environmental, social, and governance (ESG) initiatives, including emissions reduction goals. For municipal fleets and schools, reduced emissions can also contribute to improved air quality in urban areas, enhancing public health.

Improved Regulatory Compliance

As government agencies implement policies to curtail emissions and encourage the adoption of zero-emission vehicles, fleet managers will need to adapt. State-operated fleets may be subject to federal Energy Policy Act rules — and many states have enacted public fleet regulations of their own. In New York, for example, all state fleet vehicles must be zero-emission by 2040.

Commercial fleets will also feel the effects of tightening regulations. The Environmental Protection Agency’s updated emissions standards are likely to act as a forcing function for automakers to produce less gas-powered models in favor of EVs, and for companies to adopt them.  

By switching to EVs, organizations can avoid the penalties that come with regulation non-compliance and ensure they are prepared for the eventual phase-out of internal combustion engines.

Elements of EV Fleet Charging Infrastructure

Well-designed EV fleet charging infrastructure is the backbone of any electrified fleet. Let’s review the common elements of a fleet EV charging project.

EV Charging Stations

EV chargers are arguably the most important component of a fleet charging system, as they ultimately deliver power to vehicles. Chargers fall under a broader umbrella of equipment called electric vehicle supply equipment (EVSE), which includes other critical components such as cabling, conduits, and software to control the flow of energy from the grid to the vehicle.

Selecting the right type, mix, and number of chargers is essential to ensure that fleet operations run smoothly.

• Level 2 (L2) Chargers: These chargers deliver alternating current (AC) to the vehicle’s onboard charger, which converts it into direct current (DC) to charge the battery. With a charging speed of around 25 miles of range per charging hour, L2 chargers are suitable for replenishing vehicles overnight so they are ready for the next day’s routes.

• DC Fast Chargers (DCFC): For fleets with high utilization rates or that have rapid turnaround times, it makes sense to incorporate DC Fast Chargers. These chargers deliver direct current straight to the battery, bypassing the onboard charger and providing significantly faster charging speeds — up to 80% in as little as 20 minutes. DC Fast Chargers tend to cost more than L2s and require more robust electrical infrastructure.

Charging Management System (CMS)

When properly implemented, a charging management system can control the charging process in real-time to ensure efficiency and cost-effectiveness.

A key capability of a CMS is EV charging load management — automatically distributing power across multiple vehicles to avoid overloading the electrical system or incurring costly demand charges. This is especially important for larger fleets, where simultaneous charging of vehicles could exceed the available capacity.

Fleet managers can also leverage a CMS to optimize charging schedules, balance load requirements and energy costs, and track and report on charger utilization data and greenhouse gas emission reductions.

Energy Management System (EMS)

An energy management system manages, controls, and optimizes the overall energy usage of a facility in real time, including the energy used to power fleet EV chargers. Managing the energy consumption of an EV fleet is critical for both cost control and operational efficiency — and an EMS will often coordinate with the site’s CMS to ensure this happens.

An EMS enables dynamic pricing by working with the CMS to schedule fleet charging so it occurs during off-peak rate hours. Demand response at the charger level is also possible, as charging loads can be reduced during periods of peak grid demand to help utilities avoid blackouts.

In addition to managing consumption, an EMS also coordinates onsite energy generation. Many organizations are now integrating clean energy assets such as solar panels and battery energy storage into their EV charging infrastructure. An EMS helps manage EV charging plus these additional renewable assets through one platform, maximizing the use of zero-emissions energy and minimizing reliance on grid power.

Fleet Management System and Telematics

Fleet managers also need to optimize the performance of their vehicles and charging schedules at the vehicle level. An EV charging developer with API integration through a telematics provider delivers real-time data on vehicle location, charging status, route analysis, and other metrics to ensure that fleet operations are running smoothly.

Vehicle & Charger Coordination

An integrated fleet charging and telematics platform allows fleet managers to create efficient charging schedules. The system can determine which vehicles are charged and when based on route needs. Charging can also be scheduled to coincide with off-peak utility rates, improving economics.

Battery Monitoring

Monitoring the health and performance of EV batteries is critical for maintaining long-term fleet reliability. Fleet management systems with telematics integration can track the state of charge (SOC) of each vehicle, as well as battery health over time.

Route Optimization

Telematics help fleet operators optimize route miles for EVs, ensuring fleet vehicles take the most energy-efficient paths and avoid routes that would require additional charging.

Driver Education

By monitoring acceleration rate, braking patterns, and other behaviors that can impact EV range and efficiency, fleet managers can provide better training to drivers to ensure optimal vehicle performance.

EV Fleet Charging Implementation

Now that we’ve unpacked the critical components of fleet EV charging infrastructure, let’s explore the implementation process.

Installation Type

Before implementation, customers should consider the installation options available to them.

Typically, organizations select an EV charging provider and deploy a full turnkey installation.  This option provides maximum benefits to the customer’s core business, as the provider delivers a reliable charging experience from design through commissioning and manages a comprehensive maintenance program on the fleet’s behalf.

Top-tier EV charging providers also offer hardware-and-software-only solutions, as well as software data management solutions for existing Open Charge Point Protocol (OCPP) chargers already installed and operational. This provides the customer with the maximum operational and capital flexibility when deploying EV charging.

Customers and providers should discuss detailed planning and coordination to allow for current fleet charging needs as well as future EV fleet expansion.

Site Assessment

The first step in EV implementation is conducting a thorough on-site assessment. This should always include meeting with key fleet and operations personnel to confirm that the site can support EV charging and that the site layout has adequate space for ingress, egress, and charging lanes without interruption to daily fleet operations.

Additional considerations include:

Fleet Size & Charging Needs

Fleet operators should electrify a percentage of their fleet initially and consider the number and types of vehicles that will need to be charged during the dwell time period(s) when trucks are not on routes. This will assist in determining the types and size of the EV chargers, the output required, and the power capacity needed to charge.

Charger Placement

Charger locations should be selected based on ease of access for vehicles with minimal disruption to daily operations. For example, chargers may be placed near parking lots or loading docks, or within a garage, where vehicles are already stationed for extended periods.

Electrical Infrastructure

Site assessments also assist fleet facilities in understanding if they have the electrical capacity to power EV chargers. A review of the existing electrical infrastructure is conducted to determine whether upgrades are needed to accommodate the additional load or if the additional load requirements can be managed through EV charging load management software.

If a site assessment reveals that an upgrade in service is necessary, the provider will contact the utility to begin creating upgrade timelines and calculating the potential costs required to increase the facility’s power capacity.

Permitting & Regulatory Considerations

Lastly, fleet operators should be aware of local building and electrical codes to which the project must adhere, as well as any permits that need to be secured ahead of the installation.

Development, Construction, and Deployment

Once the site assessment is complete, the next phase involves the design, construction, and deployment of the EV charging infrastructure. This process typically includes:

System Design

It’s essential to develop a customized plan that takes into account the fleet’s charging needs, the site’s electrical capacity, and the potential for future expansion. The design phase also includes selecting the chargers, as well as integrating the necessary software and management systems.

Construction

This phase involves the physical installation of the chargers, as well as any necessary upgrades to the electrical system. It may also involve trenching, conduit installation, and coordination with utility providers to ensure the site has sufficient power capacity.

Testing & Commissioning

Once the chargers are installed, they undergo testing to ensure they are operating correctly and that the system meets safety standards. This includes testing the connection to the grid, verifying the charger output, and confirming the software is functioning as expected.

Operations & Maintenance

When a comprehensive operations and maintenance (O&M) plan is deployed, EV chargers have a useful life of 7 years for L2 units and 10 years for DCFC units. There will be frequent software and firmware upgrades throughout the charger’s life, and most come through a cloud-to-cloud network transfer to the units that have little to no effect on fleet operations. Here are some other common aspects of O&M:

Remote Monitoring & Support

Charging providers and fleet management systems offer remote monitoring capabilities, allowing fleet managers to monitor the status of chargers and vehicles from a central dashboard. Telematics and charging providers integrate and share data through custom APIs that the customer care team uses to monitor and identify issues, allowing for near-real-time troubleshooting from the hardware and/or software provider.

Preventative & Corrective Maintenance

Preventative maintenance is required for DCFC units to keep the chargers in warranty from the original equipment manufacturer (OEM). This maintenance step extends the lifespan of chargers and can minimize costly repairs. Failure to perform preventative maintenance on DCFC units may void their warranty.  

Equipment Warranties

In addition to standard warranties offered by the equipment manufacturer, an EV charging developer can provide more comprehensive and longer-term options that assure reliability and cover parts and labor through a performance-based service level agreement.

Operational Training

EV charging providers may offer training to fleet managers, drivers, and other personnel on the proper operation and upkeep of EV chargers. This can improve the user experience and may assist in identifying potential maintenance concerns that can be repaired to extend the life of the equipment.

Financial Considerations

Key fleet key stakeholders should review and consider the financial options that are available to aid in fleet electrification, including flexible capital and non-traditional financing. This step will help you make the best economic decision for both the fleet and the organization at large.

Fleets should run a thorough cost analysis to determine if planned budget capital or an alternative finance method like Charging as a Service (CaaS) would be best to support an EV fleet charging project. The upfront costs of building EV fleet charging infrastructure can be a significant investment, so organizations should review all available flexible ownership options, long-term savings, and state and federal incentives and utility programs that can offset a percentage of these costs.

Ownership & Financing Options

When it comes to paying for EV charging infrastructure, fleet managers typically either purchase the equipment through a capital expenditure (CapEx) or pay a regular fee to use the equipment as part of an alternative finance option.

Upfront Capital Expenditure (CapEx)

Depending on project scope and size, purchasing chargers and associated infrastructure outright can require significant upfront capital investment. However, a CapEx investment offers the buyer long-term control over the assets while providing cost savings and added property value over time. Under this model, the buyer is responsible for maintaining and servicing the chargers.

Alternative Finance Options

Alternative Finance options for EV charging include Charging as a Service (CaaS), also referred to as Equipment as a Service (EqaaS). CaaS and EqaaS both function as an operating lease and may be kept on the fleet’s balance sheet as owned assets or off the balance sheet as a “true” lease through the EV charging provider. The term length of alternative finance contracts is flexible but are typically 5 or 10 years.

There are various options available for both the customer and the provider at the end of the alternative finance agreement’s term, including renewal, outright purchase and ownership transition, upgrades and expansion, or election to remove all EV charging equipment from the site. End-of-term options are addressed in the original project agreement.

Incentives & Rebates

There are incentive programs available in nearly every state, and at the federal level, that can help fleets offset the costs of installing EV charging infrastructure. Many are stackable, meaning you can apply for more than one incentive per project location and reduce the capital requirements. Federal tax credits for total project infrastructure investment may also be available for qualified fleets that own the assets on their books. An EV charging provider should be able to evaluate and present the value of these incentives and tax credits clearly in your decision process. To learn about programs in your area, consult PowerFlex’s Policy Hub.

Return on Investment

The long-term savings associated with EVs can help offset the upfront costs of building charging infrastructure. Reduced maintenance expenses along with savings from optimized energy management can result in a return on investment (ROI) over the first 5 years. An EV charging provider can assist with modeling and estimating the anticipated ROI. Online resources are also available to give a general breakdown on cost and fuel savings, carbon reduction, and provide additional useful fleet information.  

Integrating solar arrays and a battery energy storage system (BESS) may accelerate the potential ROI of a fleet EV charging infrastructure. These additional clean energy assets can generate significant energy savings by enabling your organization to reduce electricity and peak demand costs from the utility provider.

Challenges of EV Fleet Infrastructure

Despite the numerous benefits, implementing EV fleet charging infrastructure comes with its share of challenges. An experienced EV charging provider can offer solutions to mitigate these challenges and reduce friction in the fleet charging infrastructure implementation process.

Electrical Capacity

For larger fleets, the electrical capacity to support the additional energy load of EV chargers may require upgrades to transformers, equipment, or service. These upgrades can extend timelines for project completion and could be costly if incentive programs aren’t leveraged. Your EV charging provider should present solutions through software and load management to reduce or eliminate the need for these upgrades.

Grid Constraints

In some regions, the local electrical grid may not be capable of supporting the additional load from large-scale EV charging. In these cases, utility providers may need to upgrade the grid infrastructure, adding further costs and delays to the project. This challenge can also be mitigated by adaptively managing EV charging load, which reduces strain on the utility grid by achieving a flatter power draw.

Charger Selection

Determining the right charger type and quantity for a fleet can be complex. Fleet managers must balance cost considerations with the operational needs of the fleet. Conducting a thorough site assessment to accurately determine onsite charging demands can help organizations understand which chargers are best suited for their onsite charging demands and their budget.

Initial & Ongoing Costs

Some organizations may be hesitant to start a charging infrastructure project due to installation costs, as well as the ongoing cost of electricity needed to power chargers. As mentioned, incentive programs can provide funds to support the purchase and installation of EV charging hardware. And through effective onsite energy management, along with the possibility of solar and energy storage integration, organizations can avoid costly peak demand charges by preventing large spikes in grid consumption.

Scalability & Future-Proofing

When implementing EV fleet charging infrastructure, it’s important for fleet managers to not only consider their current business needs but also what those needs may look like years down the line. Here are some things to keep in mind when it comes to scaling and future-proofing your operations.

• Software Flexibility: The software you’re running on site plays an important role in the longevity and scalability of your system. Make sure your provider agreement includes EV charger firmware updates and fleet management software upgrades that can add new features and capabilities and provide flexibility as your fleet expands.

• Regulatory Landscape: Electrifying your fleet operations is a great step to ensuring the viability of your business amidst changing environmental policies. Stay informed about emissions regulations and other legislation as they pertain to fleets so you can continue to stay ahead of mandates and avoid penalties.

• Clean Energy Asset Integration: Fleet charging can integrate with other technologies like solar arrays and energy storage systems to make fleet operations more affordable, energy resilient, and sustainable as energy prices increase and emissions regulations tighten.

• Vehicle-to-Everything Capability (V2X): V2X enables EVs to send stored energy back to the grid during periods of high demand, which can generate revenue for organizations that participate in demand response programs. V2X also allows vehicles to send energy to your facility to help power onsite loads.

Next Steps for Implementing EV Fleet Charging Infrastructure

Fleet electrification offers a range of benefits, from reducing operational costs to lowering emissions. However, the success of an electrified fleet depends on the implementation of well-designed charging infrastructure that meets your current and future demands. We encourage you to use the information covered in this guide to spark conversations within your organization, and with potential vendors, as you continue to explore the feasibility of an onsite EV fleet charging system.