Decisions Of EV Fleet Managers — The Benefits Of Choosing A Take-Home EV Charging Strategy

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EV fleet managers face several dilemmas as they try to determine optimal charging strategies for their companies.

For some, it is the goal to avoid the grid overload that results from simultaneously charging too many EVs, which requires smart charging coordination systems.
It could mean defining a day-ahead consumption plan for charging an EV fleet and adhering to this plan during operation.
Then again, it might be the recognition that, with the anticipated evolution of the EV fleet, the average energy consumption in commercial locations will increase by 134% on average from 5.6 to 8.7 kWh/EV to 13.0–19.6 kWh/EV during 2020–2040.
Perhaps it is the decision to upgrade to fleet-managed autonomous vehicles (AVs), which manage range and charging activities based on real-time trip demand and established charging-station locations but are not yet mainstream.

Kate Harrison is co-founder of MoveEV, an AI-powered EV transition company that helps organizations convert fleet and employee-owned gas vehicles to electric and reimburse for charging at home. Harrison reached out to CleanTechnica, with the idea to share three ways to squeeze extra savings out of an EV fleet manager’s decision-making. She suggests, out of possible alternatives, to choose a take-home EV charging strategy.

Harrison’s tips include assessing the necessity of chargers, allowing employees to manage their own installations, and reimbursing real costs.

As the adoption of EVs continues to surge, fleet managers are increasingly recognizing the financial and operational benefits of allowing employees to take eligible EVs home to charge. This approach not only reduces the need for costly charging infrastructure at company facilities but also leverages the convenience and potential cost savings of home electricity rates, which can be three times cheaper than charging in public. By shifting the charging burden to employees’ residences, companies can lower their overall expenses, streamline logistics, and enhance driver satisfaction, all while contributing to their sustainability goals.

However, to truly maximize the return on investment (ROI) from this strategy, Harrison argues that fleet managers should consider additional steps that can enhance savings and efficiency.

Level 1 Charging May Work Just Fine

One of the simplest ways to save on charging infrastructure costs is to evaluate whether employees truly need dedicated home chargers. For many fleet drivers, especially those with lower mileage requirements, the standard Level 1 charger that comes with their EV may be sufficient. This charger plugs into a regular 120V outlet and can meet the needs of drivers covering fewer than 15,000 miles annually (60 miles a day).

Benefits include:

Startup savings: No additional hardware or installation costs are required.
Implementation time: Because drivers can go home and plug in from day one, there are no delays in putting new EVs to use.
Liability reduction: Reduces potential corporate liability and maintenance issues associated with additional equipment.
Reduced overall costs: $700–$1,800 or more for equipment and labor.

By leveraging the existing charging cables that come with the vehicle, companies can significantly cut costs while still providing adequate charging solutions for most of their EV drivers. As long as drivers covering fewer than 60 miles a day plug in nightly to top up with the standard issue charger, they will have enough electrons to drive at least most of the time on their home energy alone.

Level 2 Charging Works for the Majority of EV Drivers

For higher mileage drivers who need regular faster charging, a non-networked Level 2 charger can be a cost-effective solution. Allowing employees to purchase and install these chargers themselves, with subsequent reimbursement, offers several advantages.

Benefits include:

Tax incentives: Employees may qualify for tax rebates and incentives, reducing overall costs. The federal credit alone is 30% off the cost of the equipment up to $1000, but many states and utilities have additional discounts, grants, and credits available for individual homeowners adding charging infrastructure on site.
Ownership and flexibility: Employees choose their equipment and contractor, increasing satisfaction and minimizing company liability.
Home value enhancement: Installing a Level 2 charger can increase the value of the employee’s home — some say by as much as $50,000 — providing an additional benefit.
Cost savings: Even EV fleet managers reimburse 100% of the costs, a company can still benefit from discounted rates, saving $300 or more per install.

This approach not only saves the company money but also empowers employees to take ownership of their charging needs, leading to greater satisfaction and reduced liability for the company.

Recognizing Actual Variances in Employees’ Home Charging Costs

Instead of offering a flat allowance or using an average cost per kWh, reimbursing employees based on their actual home charging costs can lead to significant savings and increased fairness. Flat allowances and average rates fail to reflect true expenses, leading to significant over- or under-compensation.

Benefits include:

Accuracy: Reimbursing employees based on precise electricity usage and costs avoids the pitfalls of flat allowances, which often result in significant overpayment and economic waste (e.g., 30% or more can be lost to taxes).
Fairness: Ensures employees are fairly compensated for their actual expenses. This correlates with the incentive to plug in, as it is aligned with the company’s policies.
Compliance: Reduces the risk of costly potential lawsuits for labor code violations that can arise from underpayment, a common issue when a geographic or average utility rate is used to calculate payment.
Cost savings: $100–$500 per driver each year.

Accurate home charging reimbursement software can track and report actual charging and utility data, taking the laborious administrative work out of the calculation process. Software offers an easy way for fleet managers to streamline the reimbursement process and ensure that payments are both fair and compliant with labor laws.

Final Thoughts about the Dilemmas EV Fleet Managers Face

Implementing a thoughtful and strategic approach to home charging for a company’s take-home EVs can yield substantial savings while enhancing employee satisfaction. By assessing the necessity of chargers, allowing employees to manage their own installations, and reimbursing real costs, EV fleet managers can create a cost-effective, efficient, and fair charging strategy.

This not only supports the transition to an electric fleet but also aligns with broader sustainability goals. Despite the challenges, EV fleet managers can help employees to see driving an EV as more than a free benefit and appreciate their environmental advantages. For instance, EVs produce zero direct emissions, which significantly reduce air pollution and greenhouse gasses. According to the US Environmental Protection Agency, EVs are far more energy efficient than gas-powered cars, converting more than 77% of electrical energy from the grid to power, compared to 12–30% for gasoline vehicles.