Upgrading your Business Fleet to Electric Vehicles?
Over the last number of years, electric vehicle technology has evolved. Driving ranges have improved. There is a growing network of charging infrastructure, and costs of vehicles are falling.
Over the last number of years Electric Vehicle technology has evolved. Driving range has improved, the public charging network has expanded, and costs of vehicles are falling.
Switching your business fleet to electric vehicles will help your business to reduce its carbon footprint, and show your commitment to the environment and sustainability. Electric vehicles also have lower running and maintenance costs than their petrol and diesel equivalents. Due to advances in technology, increasing market adoption and availability of information, it is now easier than ever before to assess the suitability of electric vehicles for your business fleet.
1 in 4 vehicles purchased in Ireland in 2023 are now Plug-in Electric Vehicles (EV), with the percentage of fleet vehicles making up an even higher proportion. For employees and drivers the main incentive is reduced Benefit In Kind Tax (BIK). In 2023 an employee may drive an EV up to the value of €50k and pay no BIK. There are many new EV’s available for under this €50k threshold, but typically the type of EV needed in a fleet (larger vehicle and battery than an entry level EV) will cost over €50k, in this case the employee pays BIK on the portion above €50k only. The Irish government’s 2021 budget set out a rolling reduction of the €50k exemption over the following 3 years,with the BIK exemption limit reducing to €35k, €20k, €10k and then zero by 2026. This was due to begin in 2023 but has now been postponed until 2024. The incentives for the Company operating the fleet include reduced costs, staff satisfaction, Environmental benefits, and a positive marketing image.
While some EV’s can cost more upfront than an equivalent Internal Combustion Engine (ICE) version, there are costs of fueling and maintenance to consider.
Typically 80% of EV Charging is done at home, with the remainder at destinations or on route. So for most charging the employer reimburses the employee for the energy used at home to charge the vehicle. Utility providers are now offering reduced electricity rates for EV Drivers. This is done by incentivising the drivers to charge their EV at off peak times. This hugely benefits the national power grid by reducing the load at critical times and also benefits the environment as there is a larger proportion of renewable energy feeding into the grid at off peak times. Garo Chargers when connected to our back office monitoring system can submit readings to the fleet operator so the employee can be paid directly for the electricity used to charge their EV. There is also the possibility to pair a specific vehicle to the Charger to ensure that only this vehicle’s energy is being measured and not any other vehicle using the Charger
Running Cost Example:
EV’s vary in efficiency and range. On average they will consume 0.15kWH to travel 1 kilometre. At a cost of 20c per kWH we could say a company vehicle travelling 40,000km per annum would cost €1,200 in fuel. A typical ICE company vehicle consuming 6L per 100km would cost €4,800 to fuel 40,000km. EV’s require almost no servicing due to the lack of moving mechanical parts. Approximately €300 per annum covers consumables like wipers, pollen filter etc. A typical ICE company vehicle may require up to 3 services per annum at a cost of up to €1500.
Charging Infrastructure at Your Workplace
Installing EV Charging Infrastructure at your workplace has many benefits. It is essential to have Charging available here to supplement (or replace) the charging equipment at the home. These Chargers are not only available to the company vehicle fleet but can also be used by other employees who have private vehicles. Our software system allows complete monitoring of who is using the Chargers, and allows you to set pricing for various types of users. For example the company fleet may Charge for free, staff might pay a certain price, and you can even open it to public use at a higher rate to allow your Charger to become a revenue generating asset. Having EV Charging at your workplace presents a positive image to your customers and potential clients. The next step for EV adoption in Ireland is Van and HGV fleets. There is huge growth in this area as manufacturers launch new models. Garo are already involved in this area providing charging solutions with the ability to fast charge Vans and HGV’s allowing them to get straight back on the road after reloading.