The Pros & Cons of Electric Vehicles for Fleets
An increasing number of fleets are making the transition to electric vehicles. Ownership of plug-in LCVs and vans has more than doubled since 2021, owing to increased confidence in EV technology, and a cross-industry drive towards carbon neutrality.
But what exactly are the benefits of electric vehicles for fleets, and equally, what challenges do they present for businesses making the transition?
sopp+sopp work with some of the UK’s largest fleets and commercial insurers, delivering fully-tailored accident management and repair services for all vehicle & fuel types. Here we discuss the pros and cons of EVs, including how they compare to other low-carbon alternatives like hybrids & HFC vehicles.
What are the benefits of Electric Vehicles for fleets?
1 - Claim back the cost of electric vehicles in tax relief
UK companies can claim back some of the costs of EVs through tax relief. This presents a huge advantage for profitable companies, who could be eligible for huge discounts on the purchase price of electric vehicles - bringing down the cost of their low-carbon transition.
2 - Gain compliance with inner-city emissions zones
Switching to fully-electric vehicles will bring your fleet in-line with low emissions zones across the UK. This is a huge advantage for fleets operating in or around major cities, enabling them to avoid pricey emissions charges when entering inner-city zones.
3 - Lower cost per mile, and relief from road tax
EVs can be much cheaper to run than petrol/diesel vehicles - especially if you’re using your own energy and charging infrastructure. There’s even the option to claim back VAT on energy used for charging EVs, further bringing down their cost per mile. Fully-electric vehicles are also currently exempt from road tax in the UK, although this is due to change from 2025.
4 - Future-proof your fleet management strategy
The switch to low-carbon vehicles is inevitable, with UK emissions targets seeking to end the sale of internal combustion engine (ICE) vehicles from 2035. Starting the transition early gives you more time to build an EV-tailored fleet management strategy, and prepare your business for an all-electric future.
5 - Bring your fleet closer to carbon neutrality
For many companies with larger fleets, vehicle emissions are one of the primary obstacles to achieving business-wide carbon neutrality. Switching to EV therefore has a huge impact on their wider carbon footprint - bringing their businesses much closer to fulfilling their environmental goals.
What challenges do electric commercial vehicles bring?
1 - The limited range of some commercial EVs
Some electric commercial vehicles have quite a limited range when compared to their traditional ICE counterparts. While the range and battery life of EVs is getting better, it still presents a significant challenge for fleets making the transition. It brings considerations for route planning, load capacity, and even employees’ working patterns.
2 - The increased complexity of EV repairs
EVs have more complex repair requirements than ICE vehicles. Their high-voltage batteries and powertrains present a number of safety considerations for repairers, and thus require specialist tools, training, and repair methodology. This means fleets will need to closely evaluate their existing repairer partnerships, and build an accident repair strategy that can accommodate their new EV stock.
3 - Challenges with charging infrastructure
An all-electric fleet will require significant investment in charging infrastructure. You’ll need charge points in the right locations, and with the right specifications to meet your fleet’s requirements. Public charging points are still very limited, and can’t be relied upon for commercial purposes. Strong self-owned charging infrastructure is therefore vital for operating any EV fleet effectively, and reducing the risk of vehicle downtime.
This also requires strong communication with your drivers, as not all of them will be able to charge their vehicles at home. Whatever you choose, drivers will need to understand your approach to charging and what it means for them - both practically and financially.
4 - The limited availability of electric HGVs
While there are a wide range of electric LCVs and vans on the market, the choice is far more limited when it comes to HGVs and large plant machinery. Although electric models are available from some manufacturers, their significant up-front costs, and limited battery range, present significant challenges for fleets.
How do EVs compare to other low-carbon alternatives?
All-electric vehicles aren’t the only option for fleets seeking to decrease their carbon footprint. Companies are also increasing their adoption of hybrids, biofuel, and even hydrogen fuel cell vehicles.
Here’s how these vehicles work, and how their benefits weigh up against EVs…
EVs vs Hybrid Vehicles
Hybrid vehicles combine electric motors with internal combustion engines, using petrol or diesel alongside batteries to drive the powertrain.
Comparing the emissions
Unlike EVs, hybrids still produce exhaust emissions, due to their use of internal combustion engines (ICE). While their total carbon output is significantly less than ICE vehicles (by around 45%), they still produce almost 50% more lifetime carbon than fully-electric vehicles.
How are they fuelled?
Hybrids run on petrol or diesel in combination with battery power. You fill them up with fuel just as you would an ICE vehicle. Some hybrids also come with a plug to charge the battery, like an EV, while others derive their charge passively from the internal combustion engine, or features like regenerative braking.
What are the benefits?
Many fleets opt for hybrids as a way to reduce their carbon footprint, without having to rely solely on plug-in vehicles and their associated infrastructure. On the face of it, it’s an easier transition to make, as you can still fall back on fossil fuels if needed.
What are the challenges?
However, switching to hybrid vehicles is still a significant consideration for a fleet to make, and brings many of the same challenges as faced with EVs.
To be used effectively, plug-in hybrids still require investment in charging infrastructure, and a strong buying strategy to ensure you choose the right makes, models, and specs for your fleet.
There’s also the issue of their repair; the high-voltage circuits and batteries onboard mean they’ll have to be fixed by a specialist with the correct tools and training.
EVs vs Biofuel Vehicles
Biofuel vehicles use naturally-derived fuels, usually made from food waste, cooking oils, or plant matter. Some biofuels are used as additives alongside petrol or diesel, and others can replace fossil fuels entirely. One of the most common biofuels is biodiesel, which is often used to power large commercial vehicles like lorries and buses.
What are the different types of biofuels?
There are a number of different types of biofuels on the market, including but not limited to:
Biodiesels (including vegetable oil fuels)
Ethanol & other alcohols (including methanol and butanol)
Biogas (like methane derived from food waste)
Biogasoline (and other renewable hydrocarbon fuels)
Comparing the emissions
The emissions generated by biofuel depend on which fuel you’re using, and whether you’re using it independently, or alongside fossil fuels.
Biodiesel (B100) produces 74% fewer carbon emissions than petroleum diesel throughout its lifecycle – including extraction, transportation, and use in vehicles.
However, unlike EVs, biofuels aren’t emission-free. While they’re responsible for much fewer carbon emissions, they do emit other harmful gases like aldehydes and nitrogen oxides.
There’s also the issue of biofuel production, which can be energy intensive, and therefore accounts for high use of grid energy – which is often reliant on fossil fuels.
How are they fuelled?
Biofuel vehicles use naturally-derived fuels – usually made from biomass like plant matter or food waste. These fuels are used to power an internal combustion engine, just like the kind you’d find in a petrol or diesel vehicle.
They’re usually refuelled just like petrol/diesel cars – using an onboard tank to store the fuel, and pumps to deliver it to the engine.
Biofuels aren’t commonly found at filling stations, and have to be ordered directly from the supplier, meaning you’ll need to store it yourself.
What are the benefits?
Biofuels, whether used independently or as an additive, can be an effective way to cut vehicle carbon emissions – especially in large commercial vehicles, like HGVs and plant equipment.
For companies operating fleets, switching to biofuels provides an easier way to harness low-carbon vehicles without the challenges presented by EVs, such as their reduced range, and the need to recharge.
What are the challenges?
Biofuels can be a challenge to source. They aren’t commonly available at filling stations, and usually need to be ordered/delivered directly from the supplier.
Fuels like Biodiesel can also be more expensive per gallon than their fossil fuel counterparts, due to the expense associated with their production.
They’re also not usually as efficient as fossil fuels, which means vehicles using biofuels may be less powerful, and could see fewer miles per gallon when they’re used independently. However, using biofuels as additives to fossil fuels can help to increase efficiency, while reducing carbon emissions.
EVs vs Hydrogen Fuel Cell Vehicles
Hydrogen fuel cell vehicles convert compressed hydrogen gas into electricity, which is used to power the electric motors that drive the vehicle.
Contrary to popular misconception, HFC vehicles don’t actually burn the gas for power. Instead, they rely on an electro-chemical reaction to generate a current, which charges the battery - providing power to the electric drivetrain.
Comparing the emissions
HFC vehicles can be more environmentally friendly than plug-in electric vehicles. Unlike EVs, they don’t need to be recharged from the main power grid - which still relies on fossil fuels in the majority of regions.
Much like EVs, hydrogen vehicles don’t produce any exhaust emissions. This makes them effectively carbon neutral in day-to-day use, although some carbon is still produced through tire wear, brake discs, and vehicle production.
How are they fuelled?
Much like the name suggests, hydrogen fuel cell vehicles use pressurized gas - which is stored in an onboard tank, much like the fuel in petrol/diesel vehicles.
This means they’re currently quicker to refuel than EVs, taking only a few minutes to achieve a full tank. There’s also no need for charging infrastructure, as they don’t rely on mains power to charge the battery.
What are the benefits?
Hydrogen vehicles have a number of advantages over EVs and hybrids. They’re quicker to refuel than plug-in vehicles, often have a longer range, and don’t rely on mains electricity for power - meaning they’re more environmentally friendly.
What are the challenges?
The uptake of hydrogen vehicles has been slowed significantly due to a lack of public fuelling infrastructure, as well as the expensive nature of raw hydrogen gas.
There are currently just 15 hydrogen refuelling stations in the UK, making HFC vehicles incredibly difficult for fleets to operate without investing in their own fuel storage infrastructure.
Hydrogen vehicles are also less efficient than EVs. Hydrogen fuel cells have an energy efficiency rating of around 60%, compared to the almost 100% efficiency of the lithium ion batteries found in plug-in EVs.
In Summary
Companies are increasing their use of electric and hybrid vehicles within their fleets. Ownership of plug-in LCVs and vans has more than doubled since 2020, demonstrating the cross-industry commitment to a low carbon future of transportation.
Transitioning your fleet to EV could bring a number of benefits, including:
Claim tax relief on the purchase price of new EVs
Become compliant with inner-city emissions zones
Lower cost per mile, and VAT relief on energy used for charging
Prepare your fleet management strategy for a carbon-neutral future
Bring your business closer to carbon neutrality
However, it’s also important to consider the potential challenges of transitioning to EV, including:
The limited range of some electric vehicles
The added expense & complexity of some EV repairs
The challenge of securing adequate charging infrastructure
The limited availability of electric HGVs
EVs aren’t the only low-carbon alternative for fleets. Hybrid and Hydrogen Fuel Cell (HFC) vehicles are also becoming more common in commercial transport. However, all low carbon vehicles come with their own challenges - making it critical to adopt a strong buying strategy which considers all makes, models, and specificiations available.
