Why is this Use Case 'In the Money'?

The simple answer is Purchase Price.  The biggest challenge to electrification has been the up front premium that it takes to acquire a new electric vehicle.  In the Light Duty class, especially for sedans and SUVs, that price premium is substantially narrowing and in some cases is nearly non-existent. 

The second reason is that we're talking about use cases that often don't require long range driving.  Range anxiety is usually listed as one of the top obstacles for shifting to electric vehicles.  However, many if not most use cases rarely require ranges that would challenge most EVs.  The average daily distance travelled by delivery trucks is about 50 miles per day.  Trips by light trucks or cars are even short, closer to 40 miles per day.  Not all fleets are the same of course, but many fleets are excellent candidates for electrification.​

Turning Challenges into Key Success Factors

Despite the strong cost-saving potential we discussed, fleet managers in 2026 still face several "speed bumps" when trying to pull the trigger on electrification. It’s rarely just about the vehicle itself; the vehicle is only one part of the overall system. However, with some forethought and the benefit of learning from others, it's possible to turn these challenges into the very elements that will make your electrification effort a success.

• Do I have the Power?  A common concern is whether or not your facility will have enough electrical service capacity to serve the load for your EVs. 

  • The good news is that Light Duty vehicles often have much lower charging demands than expected.  Many municipal fleets travel only ~100 miles per week, meaning vehicles don't need to be charged every day.  In many cases Level 2 chargers are sufficient, and even Level 1 charging -- requiring essentially no new infrastructure -- is sufficient.  ​

  • ​Utilities, Cities and other Enablers are ready to help.  All Arizona utilities and many of our Cities have staff and programs designed to help organizations who are making progress through their electrification journey.  They can help you understand the sort of load that might be needed for your plans.
  • Failure to plan can be a real problem.  Don't expect to make progress without a well-considered plan.  Navigating local zoning and construction permits can add administrative delays before a single shovel hits the ground.  If your plans require major electrical service upgrades you will need to account for 12 to 24 months in order for the installation of new transformers or running high-voltage lines.

• Fueling with Electricity is all about Time. In the gas world, a gallon costs what a gallon costs. In the electric world, when you fill up matters as much as how much.

  • Peak Pricing: Some rate programs implement Demand Charges, which are fees based on the highest amount of power you draw at any one time. If a fleet plugs in 20 trucks simultaneously at 5:00 PM, their electricity bill could skyrocket, erasing the fuel savings.  Understand your Rate Plan and work with your utility to choose the plan that works best for you.

  • Managed Charging: Fleet managers who electrify will become de facto "energy managers".  Utilities are increasing their attention towards how they can partner with customers to manage time of charge to reduce demand on the overall energy grid.  For example, managed charging can include using software to stagger charging times to stay under those price peaks.

• Resale Value Uncertainty. Fleet managers typically buy a vehicle with a clear plan to sell it in 5–7 years.

  • ​Because the heavy-duty EV market is relatively new, there isn't a robust "used" market yet. This makes it difficult for CFOs to calculate the Residual Value (what the truck is worth when they're done with it), which is a key part of the financial math. 

  • Recognize the challenge of resale early.  Consider delaying electrification of vehicles that may need to be resold before they "pay for themselves".

  • Consider used EVs.  Many low-mileage EVs in good condition are coming off of their initial 2 and 3 year leases right now, some of which have resale prices less than half of their original price.  Many also are being offered with extended warranties that are transferrable.  Go make a deal!