How to choose the right fleet EV charging infrastructure
August 08, 2024
As the adoption of electric vehicles accelerates, EV fleet charging becomes an increasingly critical focus for many organizations. Efficient EV fleet charging solutions ensure all vehicles remain adequately powered and operational.
However, not all EV charging solutions are created equal. Home charging, workplace and depot charging, and public charging each have relative advantages and disadvantages. This can often present a ‘Goldilocks’ dilemma for fleet and business leaders. One may be too expensive, one may be too impractical, and one may be just right. In most cases, a combination of charging approaches will be required to fully meet charging needs.
Determining the ‘just right’ solution for your organization depends on several factors. From fleet use cases to driver location and demographics to the availability of the various charging infrastructure options, the best fit will vary from organization to organization and likely involve a combination of various charging options.
This article leverages the expertise of Element Fleet Management’s trusted advisors to explore the relative strengths and drawbacks of the various charging methods and provide insights on selecting the best approach for your organization.
Global progress in charging infrastructure developments
Government support is proving to be a game-changer in expanding EV charging infrastructure. Governments around the world are introducing various incentives to encourage both businesses and individuals to switch to electric vehicles.
China is leading the charge with its massive investment in electric vehicle supply equipment (EVSE). The country boasts over 85% of the world's fast chargers and around 60% of slower chargers. With an electric car sales share of over 35%1, China is focusing on comprehensive charging coverage in cities and highways by 2030.
The European Union has committed substantial funds to develop a comprehensive charging network across member states. The Alternative Fuels Infrastructure Regulation (AFIR) will require public fast chargers every 60 km along the EU's main transport corridors, ensuring sufficient charging capacity for both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
The United States has seen accelerated deployment of charging stations following the approval of the federal National Electric Vehicle Infrastructure (NEVI) Formula Program, which aims to create a widespread and accessible public charging network. In 2023, all 50 states, including Washington DC and Puerto Rico, were allocated $885 million to support the build-out of chargers across 122,000 km of highway.
The private sector is also making significant advances in public charging infrastructure. Tesla has built Supercharger stations along several major routes. ChargePoint also has many independently owned EV charging stations. EVgo focuses on fast-charging solutions, especially in urban areas and along highway corridors.
Charging solutions
To meet the diverse charging needs of fleet EVs, fleet leaders must consider how each of the primary core fleet charging use cases—home, workplace, depot, and public—may best suit their requirements.
Home charging
Charging EVs at home offers unparalleled convenience for fleet operations. It lets drivers start their day with a fully charged vehicle without making detours for public charging. Additionally, businesses can take advantage of lower residential electricity rates, effectively reducing operational costs. Home charging infrastructure requires an initial investment in equipment such as Level 2 chargers, which should be coupled with smart charging solutions to maximize efficiency.
Delivery vehicles, as an example, drive an average of 1,024 miles per month.2 Using the U.S. household average of 16.88 cents per kWh, the monthly cost to home charge a vehicle is approximately $57.54.3
Despite its clear advantages, home charging may not be a viable option for all fleets. One major obstacle occurs when a fleet’s driver roster is heavily comprised of “garage orphans.” These are people who live in condominiums or multi-unit buildings and don’t have access to their own private charging space.
When weighing the cost-benefit of home charging, it’s important to factor in the total installation cost, not just the price of the charging hardware. This can often include the cost of infrastructure upgrades required to accommodate that charger.
Work and Depot charging
Work and depot charging solutions are ideal for fleets returning to a central location daily. Installing depot charging stations ensures that vehicles are ready for the next day’s operations. This method is advantageous for managing large fleets, offering more control over vehicle usage and schedule adherence.
By allowing employees to charge their EVs during work hours, work/depot charging can be particularly useful for fleets with variable shift patterns.
“If depot charging is fully private, there's a predictable pattern to it which has distinct advantages,” explains Gaurav Behal, Product Lead, EV Depot Charging at Element. “If you have vehicles coming in at a certain time and vehicles going out at a certain time, you can more easily anticipate and plan for things like charging cycles and infrastructure upgrades.”
One of the biggest hindrances for companies seeking to install work/depot fleet EV charging stations is, similar to the concept of garage orphans, many organizations simply don’t have the available space to create an onsite charging depot. Other work/depot charging challenges include:
- Considerable upfront cost
- Site design
- Charging load & power demand analysis
- Utility partner planning considerations
- Permitting and approvals
- Utility distribution upgrades
- Construction requirements
Public charging
Public charging can be indispensable in supporting fleet EV operations, especially for long-distance travel. The availability of public charging stations ensures coverage for routes beyond the reach of home or depot chargers, addressing range anxiety and ensuring vehicles can be charged on the go.
However, it does not represent a viable long-term charging solution for fleets for a handful of reasons. On average, public charging costs four to five times more than home charging solutions, thus seriously undermining its business case.
Further hurting its feasibility is the fact that public chargers are not always available or reliable.
“One of the concerns I hear a fair amount from drivers is they arrive at a public charger and find that it’s malfunctioning,” said Reid Stewart, EV Project Specialist at Element. “There are efforts to improve that, but maintenance on public chargers is very difficult to manage.”
This can be quite problematic for drivers who are on a tight schedule and desperately need a charge. Even if they can charge, that is time they are off the road in the middle of the day. For this reason, public charging is perhaps best used to complement the other charging methods.
The next phase in EV charging
There are fleets for which neither of these models adequately serves their needs. To address this, new charging models are being developed. Many are still in very early testing stages but, if successful, can open up new horizons for fleet and business leaders. Some of these innovative models include:
- Shared depots/e-mobility hubs/e-hub charging: These centralized private charging facilities can serve multiple businesses, maximizing efficiency and reducing costs.
- Charging as a service: An all-inclusive model for EV charging whereby the user does not require a significant upfront cash outlay. This model allows businesses to outsource their charging needs, ensuring they have access to the latest technology without the upfront investment.
- Modular and portable chargers: These solutions offer flexibility, allowing businesses to easily expand their charging capabilities as needed.
- Wireless charging: Although still in its early stages, wireless charging has the potential to revolutionize how we charge EVs, offering a seamless and convenient experience.
Selecting the right charging solution for your organization
Ultimately, selecting the right charging solution depends largely on your fleet’s composition and use case.
One pitfall fleet leaders should avoid is making a charging solution decision based solely on budget considerations.
“It’s important to select the right technology based on your use case rather than making a solely budget-driven decision. Otherwise, you can reduce the longevity of the decision that you’ve made,” Behal said.
If you’d like to find out more, reach out to Element’s team of trusted advisors who can help develop a tailored EV charging strategy that supports your fleet's transition to electric vehicles.
1. Trends in electric vehicle charging – Global EV Outlook 2024 – Analysis - IEA
3. How Much Does It Cost to Charge an Electric Car? - Kelley Blue Book (kbb.com)
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