What Electrification Means and How It Impacts Your Fleet

What is the meaning of electrification? 

At the most basic level, the definition of electrification is the transition to electricity from a previous power source. Such power sources include fossil fuels like oil, gas, and coal.  

There are two main benefits of electrification—decarbonization and lower operating costs. Decarbonization is the reduction of greenhouse gases in the atmosphere by replacing emission-producing equipment with clean technology. The second benefit is lower operating costs—on average, electric equipment requires less maintenance and associated costs as well as a reduced or eliminated need for gas. 

There are many opportunities to electrify vehicles, physical operations, residential and commercial buildings, and more. Some examples of electrification include:  

• Energy-efficient buildings that use heat pumps—instead of standard HVAC systems—that move warm air from one location to the cooler location, and vice versa. 

• The adoption of alternative power sources like wind and solar to offset and supplement the use of fossil fuels in power grids.

• The transition from gas-powered, internal combustion engine (ICE) vehicles to electric vehicles (EVs) with both consumers and companies. 

This guide will focus on electric vehicles, specifically for fleets.

Electrification glossary

Types of electrified vehicles

• Battery Electric Vehicle (BEV): All-electric vehicles that are operated exclusively by a primarily lithium-ion battery. Zero-emission BEVs are considered the leader in environmentally friendly vehicles and key for decarbonization.

• Hybrid Electric Vehicles (HEV): Hybrid electric vehicles are operated by both battery and gas. The battery charges with regenerative braking to produce its own electricity generation. Because HEVs have gas tanks, tailpipe emissions are reduced but not eliminated. 

• Plug-In Hybrid Electric Vehicle (PHEV): Plug-in hybrids operate like regular HEVs—with a combined electric and gas-powered engine—but they recharge via plugging into an external electricity source. As with HEVs, tailpipe emissions are reduced but not completely eliminated.

Why is electrification for fleet operations important?

While consumer vehicles receive much of the spotlight in the EV space, many exciting advancements are being made for fleet electrification, and it’s realistic for most fleets to begin to electrify now. 

Passenger vehicles and light-duty trucks are most commonly associated with fleet electrification, however, alternatives for medium- and heavy-duty vehicles are emerging with industry leaders like Tesla, Daimler, and Volvo beginning to market and even produce long-range heavy-duty trucks. The EV options for vehicle class and engine type—hybrid or all-electric—affords fleets the flexibility to electrify according to their unique needs.

3 reasons to optimize your electric vehicle fleet

There are many benefits of electrification for fleets, both in the short- and long-term, leading fleets to prioritize the use of electric power.

1. Unexpected trends in fuel prices

Commercial fleets that rely primarily on fuel to run operations have felt the pressure of unpredictable prices—as a direct response, 49% of surveyed companies are accelerating their transition to EVs. Additionally, 88% reported that investing in new technology that supports more sustainable operations is a high or critical priority, according to our State of Connected Operations Report. The cost to fully charge an all-electric vehicle is about 3.5x cheaper than filling a tank of gas, as reported by Energy Sage. Furthermore, investments to expand EV charging infrastructure are opening more possibilities for charging solutions to meet the growth of EV fleets. Research shows that as of 2024, there are over 61,000 publicly-accessible EV charging stations in the United States. The availability of electric fleet chargers with fast charging times, low energy costs, and simplified charging requirements make it easier for organizations to justify fleet electrification. Improved charging infrastructure also unlocks significant cost benefits—depending on the type of EV purchased, the need for gas is either eliminated or greatly reduced, saving up to thousands of dollars per year.

2. Changing policies 

New regulations continue to be announced, as with California’s Executive Order N-79-20 which will require all new light-duty vehicles to be emission-free by 2035, and new medium- and heavy-duty vehicles to follow suit by 2045. 

Under America’s Pledge, the U.S. is committed to a 25% reduction in greenhouse gases by 2030, primarily through the transition to EVs. President Biden’s Executive Order 14037, Strengthening American Leadership in Clean Cars and Trucks, approved the EPA to begin working on new emissions standards for heavy-duty vehicles for model years 2027 and later. 

3. Lower cost of ownership

Electric cars have far less moving parts compared to internal combustion engine (ICE) vehicles, requiring less maintenance and upkeep—ultimately reducing the total cost of ownership. According to the Department of Energy, estimated maintenance cost for a light-duty BEV totals 6.1 cents per mile, while a conventional ICE vehicle totals 10.1 cents per mile. EVs also eliminate costs associated with gas-powered vehicles like oil changes and smog checks.

Streamlining electrification and EV fleet management with Samsara

There are many factors that determine electrification suitability in your fleet. If you’re just getting started, it’s a good rule of thumb to begin with light-duty vehicles that drive less than 300 miles per day. From there, look for vehicles that park at the same location each night with poor fuel economy and high idling time. 

Looking into additional data points can help drill down whether a given vehicle falls into low, medium, or high suitability. Innovative technology such as Samsara can help organizations take their EV fleet management to the next level. Samsara Telematics’ Fleet Electrification Report identifies EV suitability based on many of the points mentioned here to optimize your transition to an EV fleet. For example, if you have vehicles that are not driving long distances daily, have potential for significant fuel savings, and have a lifetime usage less than 100,000 miles, they would classify as “good” or even “excellent” for electrification in the Samsara dashboard. 

Get the essentials on electrification and better understand how EVs can benefit your fleet from meeting sustainability goals to cost savings, and learn how to build your future EV fleet with Samsara as your trusted partner.