Plug Into EVs to Improve Your Company’s Bottom Line

Benefits of replacing your gas-powered fleet with electric vehicles go beyond sustainability

Plug Into EVs to Improve Your Company’s Bottom Line

Transportation is central to cleaning business operations, but it creates challenges for a company’s sustainability goals. In 2022, direct and indirect greenhouse gas emissions from transportation accounted for 29% of total U.S. greenhouse gas emissions, according to the U.S. Environmental Protection Agency (EPA).

Transitioning to electric vehicles (EVs) offers a cost-effective way to reduce emissions and improve profitability, particularly when it’s time to replace older vehicles in your business fleet.

The growing case for EVs

EV adoption has surged, with almost 14 million new electric cars registered globally in 2023, bringing their total number on the roads to 40 million, according to the International Energy Association (IEA). Improved battery technology, extended driving ranges, and government incentives have made EVs a viable choice for cleaning businesses that rely on fleets. Additionally, EV charging infrastructure is expanding rapidly, making the transition easier and more accessible for businesses of all sizes.

Switching to EVs helps businesses demonstrate leadership in sustainability and is also a branding opportunity. It signals a commitment to reducing environmental impact, enhancing reputation, and building customer loyalty.

EVs vs. gas-powered vehicles

When considering service and sales vehicles, gas-powered sedans average 30 miles per gallon (mpg), costing about US$0.12 per mile at $3.50 per gallon, according to the U.S. Energy Information
Administration (EIA). By comparison, an EV sedan averages 3.6 miles per kilowatt-hour (kWh), costing approximately $0.04 per mile at $0.15 per kWh, according to the EPA.

For a vehicle driven 20,000 miles annually, a gas vehicle will cost $2,333 per year, and an EV will cost $833 per year. That’s $1,500 in annual fuel savings per vehicle, plus potentially lower
maintenance costs thanks to EVs’ mechanics and regenerative braking systems, which reduce wear and tear on components like brakes.

Gas-powered delivery vans typically achieve 15 mpg, costing $0.23 per mile, while electric vans average 2.3 miles per kWh, costing approximately $0.07 per mile, according to the U.S. Department
of Energy. For a van driven 25,000 miles annually, a gas van would cost $5,833 per year and an electric van would cost $1,630 a year.

Switching to EV vans saves over $4,200 annually per vehicle, a significant benefit for distributors and manufacturers managing large fleets. Additionally, reduced downtime due to fewer mechanical issues translates to more consistent operations.

Potential roadblocks

Policy changes under a new federal government administration could impact adoption. However, many state-level incentives are expected to remain intact. Likewise, federal support for
EV-charging infrastructure may decrease, but private investments and public-private partnerships are likely to fill the gap.

The long-term financial and environmental benefits of EVs continue to make them an attractive option for cleaning businesses.

Stephen P. Ashkin

President, The Ashkin Group

Stephen P. Ashkin is president of The Ashkin Group, a consulting firm specializing in green cleaning and sustainability. He can be reached at [email protected].

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