For businesses keen to make the transition to electric vehicles (EVs) for their commercial fleet, the main inhibitor is cost. “Companies are embracing the transition to EVs – we are certainly seeing that change. But whether on the consumer or the business side, the biggest challenge is that initial cost, which remains a barrier,” says Derek Kavanagh, head of motor finance at Bank of Ireland.
However, such businesses may just be looking at cost the wrong way.
“It is really important for anybody looking to make that change to not just look at the initial cost but to look at the total cost of ownership,” says Kavanagh. “Yes, currently very many EVs are priced higher than their ICE [internal combustion engine] equivalents. But you have to look at the total cost of ownership, including the cost of charging the EV versus putting petrol or diesel in it.”
On that basis, EVs win hands down.
RM Block
As an EV driver himself, Kavanagh charges his car at a night rate at home, paying around €11 per 500km, a huge saving over fossil fuels.
The good news for fleet managers is that he believes EVs are becoming more attractive at the point of purchase. Fleet managers benefit from the fact that EV servicing costs are lower too.
“With an EV there are fewer moving parts, so less chance of things going wrong. You don’t have your oil changes or your oil filter changes and there is less wear and tear on brake pads and brake discs. All that means lower money coming out of a company’s pocket,” he says.
While heavy goods vehicles are slower to evolve, light commercial electric vans are beginning to see their range extend.
“Similar to the transition we have seen on the passenger side, products will be coming down the line that will see battery range go to 500km, an absolute game changer in that space,” says Kavanagh.
Ranges of 500km to 600km are already standard in newer passenger vehicles coming to market, reducing the range anxiety that concerned both consumer and fleet buyers in the past. “There has been significant progress over the last number of years and that is going to continue,” says Kavanagh.
It means a changeover to EVs for environmental, social and governance (ESG) reasons no longer needs to include a compromise in performance.
“It’s now a strategic decision that says we can reduce our emissions, control our running costs and, from a public awareness perspective, join the movement to cleaner transport.”
In many ways range anxiety has been replaced by charger anxiety but that too is improving, thanks to continued investment in public charging infrastructure. Fleet managers need to provide at home charging equipment for night-time use where possible too, to make the transition to EVs as easy as possible.
Already EV fleets pay lower motor tax and vehicle registration tax, and benefit from preferential rates of benefit in kind (BIK) – though that is a tapering relief, from €35,000 this year to €10,000 in 2028. There is also a BIK tax exemption where an employer provides charging facilities for an EV at an employee’s home.
“Transitioning to electric vehicles is a direct, measurable way to meet ESG goals while also unlocking operational and financial benefits,” says David Fitzgerald, chief revenue officer at EZO EV Charging.
The key is to choose the right EVs for your fleet requirements. “Define whether your fleet serves primarily urban or long-distance needs and select vehicles accordingly. Battery size, realistic driving range, and charging capabilities should align with your duty cycles,” he says.
“Prioritise models with robust battery warranties and reliable after-sales service networks to reduce risk,” he advises, adding that newer EVs with 800V charging architecture allow for faster recharging, “an important factor for fleets with tight turnaround schedules”.
While national networks are still expanding, workplace and home charging already meet most fleet needs, he points out.
Sometimes misconceptions can impede fleet managers making the switch, such as fears around battery longevity. “Modern EV batteries retain high performance beyond 120,000km, and advances have minimised degradation – even with fast charging,” says Fitzgerald.
“The shift to EVs requires strategic planning. A common pitfall is over-investing in infrastructure. Partnering with an experienced EV and CPO (charge point operator) provider ensures right-sized infrastructure, optimises costs, and supports a phased, manageable transition,” he adds.
The Sustainable Energy Authority of Ireland (SEAI) can help. It offers a fleet assessment grant worth up to €4,000 for a business with more than five vehicles in its fleet, and up to €8,000 for businesses with more than 50.
The assessment will look at your current fleet, mileage and fuel consumption, and make recommendations about which vehicles are best suited to electrification and the charging infrastructure required, either at home or in the depot.
“They look for the quick wins you can start with, and build from there,” says Emer Barry, programme manager for EVs at the SEAI.
The SEAI also offers businesses grants for new electric vans, worth up to €3,800 for small to medium sized models, and a €7,600 for new large panel vans. These are processed through the dealerships at the point of sale.
“Fleet managers know their business and they know their vehicles. They know what they need, and they understand all the telematics and logistics. They get all of that,” says Barry,
“But when it comes to EVs, they just sometimes need a bit of help and that’s what we’re here to do, to try and encourage them and support them on that journey.”
