The shift towards electric vehicles (EVs) in fleet operations is gaining momentum globally, with the UK providing valuable insights for the Australian market. In a conversation with Peter McDonald, Director at Ohme, Fleet EV News explored the evolving demand for EVs among fleets and the innovative charging solutions helping to support the transition.
Fleet Electrification: The UK Experience
The UK has emerged as one of the leading markets for EV adoption in Europe. Despite Germany having a larger overall car market, the UK surpassed its European counterparts in EV sales in 2023, driven largely by fleet purchases. The fleet sector plays a crucial role in the transition to EVs, accounting for almost 60% [59.6% in 24] of new vehicle sales in the UK.
One key factor influencing EV adoption in fleets is the financial penalties imposed on manufacturers who fail to meet their EV sales targets. This regulatory push has resulted in an influx of new electric models with competitive pricing and better specifications, creating a dynamic market where new EVs are often cheaper and more advanced than their predecessors. However, this rapid technological progression has introduced challenges, particularly around residual values, as older EVs face steep depreciation.
In contrast, the Australian market is still in the early stages of fleet electrification. The majority of EV sales in Australia are to private buyers, often through novated leasing, with fleets adopting a cautious approach due to concerns about charging infrastructure, vehicle availability, and resale values. Despite these challenges, McDonald believes that as Australia’s EV infrastructure matures, the market will increasingly mirror the UK’s trajectory.
Charging Infrastructure: The Critical Factor for Fleets
One of the primary barriers to EV adoption in fleets is charging infrastructure. Unlike passenger car owners who can conveniently charge their vehicles at home, fleet operators face complexities around access to charging stations, costs, and operational efficiency.
Ohme, the UK’s largest home EV charging company, developed smart charging hardware to address these challenges. Their technology optimises charging based on grid demand and energy pricing, allowing fleet vehicles to charge when electricity rates are lowest. This not only reduces costs but also helps balance energy supply and demand, particularly in regions with volatile renewable energy generation.
McDonald explained: “Many EVs in the future will be in a driveway for up to 12 hours, but won’t need 12 hours of charging. If you charge regularly, you may only need one or two hours of charging. Why not line that up when it’s best for the grid, rather than setting predictable charging schedules?”
Home charging is ideal for many fleet drivers, but it’s not always feasible, particularly for commercial van operators who may not have off-street parking. In such cases, reliance on public charging infrastructure becomes necessary, yet this presents significant operational inefficiencies.
“Public charging is more expensive, and it also makes the workforce less efficient. A passenger car driver can charge and work remotely, but what does a tradesperson do while waiting an hour for their van to charge?” McDonald noted.
Depot charging is an alternative solution, allowing fleets to install dedicated charging stations at company premises. This ensures vehicles are charged overnight and ready for daily operations, minimising reliance on public charging networks. However, McDonald stressed the importance of planning and investment: “Fleets need to manage expectations. Going out and buying 100 EVs without preparing charging infrastructure is a recipe for failure.”
The Evolution of Smart Charging and Vehicle-to-Grid (V2G) Technology
A significant innovation in fleet electrification is the integration of smart charging systems that dynamically adjust charging times based on grid demand and renewable energy availability. Ohme’s smart chargers, for example, allow fleets to automatically schedule charging during off-peak hours when electricity prices are lower, potentially reducing charging costs by up to 80% compared to conventional charging methods.
McDonald elaborated: “We enable the ability for cars to charge dynamically, even outside of the cheapest tariff windows, if there’s excess renewable energy on the grid. This helps balance supply and demand while saving fleets money.”
In addition to smart charging, Vehicle-to-Grid (V2G) technology presents a promising opportunity for fleets. V2G enables EVs to not only draw power from the grid but also feed electricity back into it when needed, effectively turning fleet vehicles into mobile energy storage units. While V2G has been slow to take off due to the high cost of DC-enabled chargers, advancements in AC-based V2G technology are set to make this solution more accessible.
“The game-changer will be AC V2G. With a two-way inverter in the car, an AC V2G charger won’t cost much more than a standard home charger. That’s when this technology will scale,” McDonald predicted.
Best Practices for Fleet EV Adoption
For Fleet Managers considering the transition to EVs, McDonald shared key best practices based on the UK’s experience:
- Start with a Pilot Program – “Buying 100 EVs without preparation leads to failures. Instead, start with 20, allocate them to suitable drivers, and scale up from there.”
- Prioritise Suitable Use Cases – “Identify drivers with home charging access or those who can benefit from depot charging. Fleets should pick drivers who will face the fewest barriers.”
- Invest in Charging Infrastructure Early – “Charging solutions need to be in place before fleets scale up their EV adoption.”
- Leverage Smart Charging Solutions – “Fleet managers can significantly reduce energy costs by using smart charging technology that aligns with energy tariffs.”
- Monitor Residual Values – “Manufacturers are under pressure to sell more EVs, which impacts used car values. Fleets need to stay ahead of these trends to manage their long-term costs.”
The Future of EV Fleets in Australia
McDonald anticipates that Australia’s fleet electrification will accelerate over the next five years, particularly as energy providers introduce smarter charging tariffs and more businesses recognise the long-term cost benefits of EVs.
“We see Australia following the UK’s trajectory, but fleets must plan carefully. Avoiding costly mistakes means getting the charging infrastructure and operational strategy right from the beginning, he advised.
Despite the current challenges, McDonald remains optimistic about Australia’s EV transition. By learning from the UK’s experience, Australian fleets can implement best practices to ensure a smooth transition, minimise risks, and fully capitalise on the benefits of electric mobility.
Fleet Managers looking to future-proof their operations should start planning for the inevitable shift to electric vehicles. By strategically adopting EVs and investing in the right charging solutions, businesses can stay ahead of regulatory changes, reduce operating costs, and contribute to a more sustainable transport sector.
