Building the business case for an electric fleet

A sound business case compares the full cash flow of both options over the time you'll keep the vehicles. Fuel savings alone won't answer it, and neither will the purchase price.

What to include

Item	What to check
Vehicles	Purchase or lease cost for each option, on the same basis
Chargers and site works	Chargers, switchboard, cabling and any supply upgrade
Energy	Your real tariff, including demand charges
Fuel	What you actually pay, net of any fuel tax credits
Servicing and tyres	Your maintenance history, by km
Insurance and rego	Real quotes for both options
Resale	The biggest unknown for electric vans and trucks
Downtime	Charging time and route changes, if any

The numbers finance teams ask for

Upfront premium. How much more cash is needed at the start.
Yearly running saving. What the fleet saves each year after that.
Payback. When the running saving covers the premium.
Net present value. The saving in today's dollars at your discount rate.
Sensitivity. What happens if fuel, power, km or resale move.

The fleet budget tool works out all five for a mix of vehicles. You can download the results to check them in your own model.

What usually moves the answer

Kilometres. Running savings grow with km, while most of the premium doesn't, so high-km vehicles pay back first.
Charging time. A demand charge can take a large share of the saving, and starting after the peak window can avoid it.
Site costs. A supply upgrade can change the result, so check your site early.
Resale. There is little Australian data for electric vans. Test a lower figure.

Tax and accounting

Tax treatment affects the result. That includes depreciation, GST, fuel tax credits, fringe benefits tax and how a lease is treated. Our tool shows figures before tax, so ask your accountant to apply your position.

Next step

Test your own mix in the fleet budget tool. If the result looks promising, a feasibility study replaces the assumptions with your site, tariff and routes. Studies start at $1,000.

This is general information, not financial or tax advice.