Considerations for LCV electrification

Some fleet managers are finding that the used LCV market may serve them – and their operational requirements – beyond the ban date. But, while that might be a valid short-term solution, it’s not future-proof.

It’s also important to remember that LCV electrification offers potential benefits to organisations now. The sooner you start your journey to electric fleets, the sooner you’ll be reaping the environmental, reputational and financial advantages – and the faster you’ll learn how to optimise them.

What are LCVs?

At the lighter end of the LCV bracket sit car-derived vans such as the VW Caddy and Ford Fiesta van. At the heavier end – approaching 3.5 tonnes in weight – you’ll recognise the classic Ford Transit and Mercedes-Benz Sprinter vans.

Some argue that LCV weights can stretch to vehicles as heavy as 7.5 tonnes, but drivers will need an ‘entitlement’ on their licence to drive these.

The range of roles LCVs carry out is even broader. Smaller vehicles are common choices for tradespeople to store and transport tools. Landscapers and construction businesses often employ pickup trucks for transporting and towing. Organisations including retailers rely on larger vans for local and nationwide delivery purposes.

What’s the UK’s LCV electrification status?

Organisations such as BT and Royal Mail have made visible commitments to LCV electrification, converting fleet vehicles and promoting sustainability messages on their livery. Facility management company Mitie recently celebrated adding the 6,000th EV to its fleet, marking 73% conversion as it bids to complete fleet electrification by 2030.

The Government targeted 10-11% electrification of UK LCVs by 2024, against 22% for passenger cars. But at year-end there were only 100,000 or so eLCVs on our roads, representing 5% of total UK LCV figures.

What particular benefits does LCV electrification offer?

LCVs – particularly those frequently driving between towns and cities – cover a huge number of miles. Switching from ICE vehicles to electric versions therefore opens the door to potentially significant financial benefits. The cheaper cost of refuelling at owned charging facilities – and the possible savings on reduced maintenance requirements (and therefore vehicle ‘downtime’) – can help offset initial investment costs.

eLCVs are also exempt from clean-air charges – another cost saving for organisations running vehicles in major cities.

The lack of emissions inherent in running eLCV fleets helps organisations achieve sustainability targets. And the sheer number of LCVs on the road offers larger organisations a great chance to publicly establish an environmentally conscious reputation.

What to consider before electrifying your LCV fleets

While the benefits of transitioning to electric LCV fleets are clear, that doesn’t mean the transition’s a simple process. Diving into electrification without thorough analysis and planning can lead to expensive mistakes.

So, in preparing for ‘beating the ban’ and reaping the benefits, organisations need to consider the following factors…

Cost

There’s no denying that eLCV purchase and lease prices are higher than those for ICE equivalents. The upfront outlay can understandably put decision-makers off the idea of van electrification.

There’s also the potential cost of charging – whether using expensive public facilities or investing in owned infrastructure.

But, before pushing the decision back by years, organisations should consider:

• Total cost of ownership (TCO). While initial eLCV costs are higher, electrification has the potential to generate cost savings over the longer-term. Fuel savings (when using owned charging facilities), potential reductions in maintenance costs and exemptions from clean-air and congestion charges can contribute to this.
• Government grants. There’s support available with the costs of low-emissions vehicles and supporting charging infrastructure. Check our summary of available government grants to see what you might be eligible for.
• Funding options. Certain EV specialists and electrification partners offer financing arrangements to help you spread initial costs over a number of years.

Range

EVs – and eLCVs – can travel further on a single charge than previously possible. However, particularly when combined with payload (see below), concerns over eLCV range remain.

Having to seek top-up charging during a working day can be operationally disruptive. So, careful fleet route planning may be necessary to avoid drivers needing to take charging pitstops.

Payload

The load a vehicle carries has as impact on its range. Higher loads, together with high mileage requirements, mean higher chances of needing to charge during the working day.

Additionally, eLCVs are already heavier than their ICE equivalents due to battery weight. This can cause particular problems with driving eligibility, as vehicles over 3.5 tonnes in net weight require drivers to possess extended licences.

Thankfully, the Government introduced a 0.75 tonne concession for eLCVs, so standard-licence holders can drive electric vehicles up to 4.25 tonnes in loaded weight.

Procurement cycle

Organisations usually operate their fleets on procurement cycles.

If you lease your fleet vehicles, it’s important to consider when existing agreements will require renewal when scheduling the switch to eLCVs. Failure to do so could result in having to pay early termination charges.

If you own your vehicles, you may need to consider remaining ICE-vehicle life – and end-of-life value – when planning electrification timescales.

Charging locations and charger specifications

Public charging locations don’t offer the same cost savings as owned site- or drivers’-home-based hardware. Their locations aren’t based on your fleet’s operational routes, either, and they’re likely to present accessibility issues (see below).

Ideally, organisations should install their own charging infrastructure so that vehicles can charge whenever they’re on-site. This provides predictable charging availability and enables cheaper charging rates.

However, careful planning of chargers’ locations and specifications is vital for optimising the efficiencies of an owned charging network.

Understanding budgetary constraints and carrying out a suitability assessment before committing to specific vehicle transition and infrastructure investment will help build pragmatism into your electrification plans. It’ll also support future-proof decision-making.

Charging accessibility

LCVs over 3.5 tonnes are often too large for standard EV parking/charging spaces. They’re also harder to manoeuvre in charging locations where space is tight.

Home charging – unless drivers have spacious off-street parking – is unlikely to be practical for anything but the smallest eLCVs.

Fleet managers will need to take these limitations into account when planning charging schedules.

Driver attitude

EVs generally offer simpler, smoother driving experiences.

However, driver preconceptions about EVs are common, and fleet managers will need to be aware of these in communicating with and onboarding drivers. It’s worth including drivers in conversations from an early stage and scheduling education sessions for getting to grips with driving and charging nuances from the outset.

Find ways to reap the benefits

Although the electrification of your LCV fleet won’t be without challenges, it’s worth remembering the potential benefits, the existing support and the available approaches.

eLCV electrification provides a route to genuine cost savings, sustainability advances and public perception improvements.

Specialist electrification partners can support you through the process too, tailoring your journey and helping you avoid expensive mistakes.

And, finally, while the ban on the sale and manufacture of ICE vehicles is only a few years away, there isn’t an expectation that you’ll electrify your fleets overnight. Planning your transition based on budget, operational challenges and vehicle-specific constraints will help you to electrify at a pace that suits you. That said, taking the quick wins now will:

• Simplify your overall electrification challenge
• Help you learn from experience
• Allow time for operational change, charging-facility expansion and technological development to aid with full rollout

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