A commercial fleet guide to Charging Infrastructure
Fleet leaders are strategically assessing the role of electric vehicles within their operations as well as the essential charging infrastructure needed to support them. Successful deployment hinges on the ability to charge as needed and work within the confines of a business’ typical operations, so determining the optimal placement, power needs and future scalability is critical.
Defining Specific Goals is Critical to Decision Making
“The first question is, ‘what is your goal?’ It could be regulatory compliance, experimenting with new technology or achieving ESG goals,” said Travis Hill, managing director of Penske Energy. “With the regulatory landscape in constant flux at the moment, fleets may not fully understand their potential electrification obligations. Once we know the motivation, we can assess the fleet and pair it with a solution to meet the current needs and also ensure future requirements are considered.”
Forward-looking planning helps fleets install the solution they need for years to come. Detailed planning like this can lay the foundation for future electrification needs beyond what is required today, and address the potential for future rework, such as the need for costly retrofit projects later on.
Vehicle Driven Infrastructure Design: The types of vehicles in the fleet, their applications and use periods define the infrastructure demands. Infrastructure needs are based on fleet makeup and the vehicle routing. “It is critical to identify and focus on applications or routes that are best suited for electrification,” Hill said. “Penske Truck Leasing and Penske Energy collaborate to ensure the vehicles fit the client’s needs and that the appropriate infrastructure is deployed to support them.”
“We know fleet operators understand their traditional internal combustion engine (ICE) vehicles extremely well, but electric vehicles (EVs) are new technology with different considerations. Estimated ranges can differ in their real-world applications, and payloads are often dramatically different from their ICE counterparts. At Penske, we are constantly acquiring and testing the latest EV trucks to understand how they can best be utilized by our customer,” said Drew Cullen, senior vice president of fuels and facility services for Penske.
U.S. Average Energy Prices
*Prices in cents per kWh.
Charging Levels: Commercial fleets can use Level 2 chargers for overnight or extended dwell time charging or deploy higher-power DC fast chargers to charge vehicles in less time. It’s important to note that many vehicles will have differing power levels they can accept while charging. For example, certain light duty commercial truck EVs can only accept 11.2kW when using a Level 2 charger.
Additionally, it may not be practical to use Level 2 power for commercial tractor EVs and instead these vehicles may require DC fast chargers. The ideal solution depends on the fleet’s specific operational needs, including the mix of equipment,
usage patterns and mileage, as well as the power available at the site or consideration for off site solutions for those companies with limited space.
Utility and Power Considerations: There are thousands of pricing models for electricity within the U.S. In some areas, commercial electricity costs 8 cents per kilowatt hour, while others can exceed 20 cents per kilowatt hour. Utilities typically implement additional fees for peak use periods or when power consumption exceeds a set amount. Understanding power costs including tariffs, time of use and energy choice can help determine optimal charging locations.
Sources: U.S. energy Information Administration; Electric Power Monthly; February 2024
Power Requirements: After understanding the necessary charging solution for a given fleet, it is important to analyze the current electrical systems at the facility to determine if a new service will be needed. Many utilities have publicly available interactive maps that display the available capacity on any given circuit or substation. Using tools like these can give customers an idea of what to expect, but direct contact with utilities should be established early on in any major fleet charging project.
“If there isn’t adequate power on site to support the chargers and the timelines to add new service are lengthy, our team begins to consider alternative temporary charging solutions. Penske Energy keeps the pulse on this ever-evolving market segment so we can offer solutions to even our most power constrained customers” said David Sneed, fleet electrification product manager for Penske Energy. “There are new charger depots coming online daily, and we track these developments in conjunction with our customers facilities and routes to assess if there is potential for either on-route or overnight charging sessions. There are also on-site solutions for power-challenged customers, such as battery storage integrated chargers that enable the charger to fill up when energy usage at the facility is low and dispense power at the needed time for the operation.”
Battery storage systems and load management software solutions can be used to increase capacity and avoid peak electricity demand times when energy costs are high or not available. Load management software solutions are able to distribute power among chargers to ensure that charging ports in use are receiving optimized power output. Software solutions also exist to adjust charging rates based on real-time power supply rates and demand.
“If you have one megawatt of power, 20 trucks and 10 posts, maximizing that power and delivering it to
the truck that needs it the most is paramount,” said Cullen. “It comes down to using energy efficiently.”
Conceptual Design: The design of the solution depends on a mulititude of factors: desired location of equipment, where the power source is located, length of conduit that needs to be run, trenching that may be required, parking constraints and consideration for the business’ daily operations that could be infringed upon by the installation of the chargers. “Things get really complicated when you take into account these factors, as well as property lease constraints, how long the site will remain in use and any growth plans for EV expansion. Every site, every fleet and every utility is different,” Hill said.
Available Incentives: The initial investment in EVs and charging infrastructure can be substantial. To help offset these costs, grants and other financial incentives can help fleets substantially, but there is a catch.
“What a lot of companies don’t understand is that some of these federal, state and local incentives for EVs and infrastructure are only available for solutions that go above and beyond regulatory compliance initiatives,” Sneed said. “In other words, it can be a real benefit to forward-thinking companies to take advantage of these funds for large scale EV adoption, but not always as attractive for fleets solely looking to comply with the latest regulations.
It is essential to conduct a comprehensive cost-benefit analysis, factoring in capital costs, incentives, fuel savings, maintenance costs and other expenses to determine the total cost of ownership for any charging project. “Compelling return on investments make business sense. The bottom line is this technology really has to stand on its own,” Cullen said.
Navigating a New Product Market
There is no shortage of options when selecting electric vehicles, charger hardware and charger software. This can be a great thing, with lots of competition leading to more product innovation, but it also confuses and clutters the market for customers. Selecting the right solutions is critical to smooth business operations. If the charger doesn’t work seemlessly when the vehicle plugs in or the software doesn’t communicate properly with the charger, it can cause a lot of user frustration. At Penske, we’ve tested dozens of hardware and
Remaining Flexible
software suppliers, developing connections with all of the proven leaders in the space, and we’re here to help you find the right technology for your operation.
Future-Proofing Solutions: Infrastructure investments are substantial, so it is important to consider the customer’s goals related to EV use as well as regulatory requirements that could drive adoption. “Today a customer might have two vehicles and only need Level 2 charging. As the fleet expands, additional charging stations, higher grid capacity and advanced energy management systems may be required,” Hill said. “We use projections to estimate future energy demand and how today’s design can scale as adoption increases.”
Lead Times: With vehicle lead times now shorter than ever, planning infrastructure in advance is key. Electrification projects can often experience long lead times due to permitting and the availability of power at the site and delivery times for power equipment. Low-power chargers can take less than a year, while more powerful chargers can take a year or more to install.
Planning EV charging infrastructure can seem daunting, but Hill says it doesn’t have to be. If one site doesn’t work, customers should consider alternative locations or applications that are a better fit.
“We are still in the early stages of commercial EV adoption. There is no reason to force solutions into locations that don’t make sense unless it is regulated,” he said. “As a partner, we want to help our clients deploy a solution that is cost-effective and fits in their operation. We can work with customers to find a location or application that meets their needs and will help them reach their EV goals.”
For infrastructure advisory services, contact Penske Energy at penskeenergy.com.
