Making the decision to transition your trucking fleet to include electric and zero-emissions options is not just a reinforcement of your company’s commitment to sustainability, but a strategic financial decision that can significantly impact fleet efficiency and operational costs. Understanding the financial implications and available options for bankrolling this shift is crucial to making an informed transition. Luckily, there are a growing number of financing solutions, along with specialized grants and incentives that can relieve much of the financial burden upfront while enabling long-term cost savings.
With the increasing emphasis on lowering carbon emission in the U.S and fulfilling company ESG requirements it’s important to know that money is available, if you know where to look. There are various financing options that cater to different business needs.
Specialized automotive loans for EVs often feature lower interest rates or favorable terms, reflecting the vehicles’ lower maintenance and operating costs. Many of the industry’s trusted lenders you rely upon to finance existing commercial trucking fleets are now offering dedicated loans to finance new EV adoption.
But do your research first. Develop a strong relationship with lenders who understand the fleet industry and are committed to sustainable practices can provide several advantages. Lenders with a focus on ZE initiatives often provide tailored financing solutions that match the specific needs of fleet transitions and are more likely to understand the nuances of zero-emission transitions to offer valuable insights and advice.
But wait.
Before you head to the bank, know that in most cases loans should only be used to close the gap between the cost of the truck(s) and the amount available to you in grants and incentives, which are substantial. At both the state and federal level, a range of incentives exist to facilitate the adoption of ZE trucks in the form of tax credits, rebates, and grants designed to offset your initial purchase price.
Eligibility will differ depending on your fleet’s location and business incentive requirements. Working with a partner like ETHERO in this process helps you find, apply, and distinguish between the various available programs to ensure you get the best deal.
Many current incentives are stackable and can be combined with other grant programs for maximum savings. Incentives can come and go quickly but don’t worry. There are always new and extended programs announced regularly and some even prioritize funding for in-stock inventory
For a list of current grants and incentives available near your ETHERO dealer, click [here].
Aid isn’t restricted to the purchase of the truck itself. Many tax credits available today include rebates and funding to purchase and install the right EV charging infrastructure to support your fleet. Federal agencies including the U.S. Department of Transportation, Federal Highway Administration, Environmental Protection Agency and others have prioritized funding for project that enhance the nation’s infrastructure to support broader EV and ZE adoption at both the consumer and commercial level.
Transitioning to an electric fleet requires careful financial planning to accommodate the costs of vehicles and charging infrastructure. Exploring various financing options, taking advantage of incentives, and conducting thorough cost comparisons are critical steps in financially preparing for an electric fleet.
Don’t let the dollar signs deter you from making a move to improve your fleet’s sustainability, longevity, and efficiency. While the initial purchase price of EVs can be higher, the total cost of ownership is often lower due to reduced fuel and maintenance costs. Anticipating future savings and government incentives can significantly impact ROI and operational budgeting.