Transitioning fleets from fuel to electric has been growing in popularity among organisations who want to lower their carbon footprint and reach their sustainability goals. This includes councils, fleet and facilities management companies that service councils, and other government and independent organisations.

However, this transition, especially in large organisations, often encounters hurdles that make the transition from a fuel to electric more complex. This is especially true for organisations wanting to transition to a green fleet of landscaping and outdoor cleansing equipment like ride-on mowers and street sweepers.  Finding a way to get buy-in and agreement from all affected parties is one of these hurdles. So too is the budget and its allocation across business areas. This is where strategies for leveraging capital expenditure (CapEx) versus operating expenditure (OpEx) models can be useful, but it will require communication across two or more departments such as fleet, operations, and maintenance.

A smooth transition to a green fleet will also require effective change management strategies to help affected business areas adopt and adapt to the new green technology.

Leasing vs buying

Traditionally, purchasing landscaping and outdoor cleansing equipment outright has been the norm for many Australian councils and organisations when acquiring fleet equipment. However, leasing presents a viable alternative that can significantly impact budget allocation, helping organisations transition to electric equipment sooner.

By shifting from outright purchases to leasing agreements, an organisation can mitigate the upfront CapEx burden, opting for a more manageable OpEx model—especially when the upcoming 2024–25 budget doesn’t have sufficient CapEx allocation to allow for the purchase of new electric fleet equipment.

EcoTeq Sales Manager Braden Light hears it first-hand from his customers in facility management. He says while they may find it cheaper in the longer-term to buy an electric mower outright, it’s easier for them to hire for shorter-term contracts.  Many choose to leverage OpEx models through leasing agreements.

Decision-makers enjoy the flexibility and ease associated with leasing, particularly in the scenario where they need to seek approval for CapEx purchases. They have control of their OpEx budgets and can lease electric fleet equipment through a third-party provider.

Braden reflects on this growing trend where organisations are increasingly using OpEx budgets to bring electric vehicles into their fleets. While the long-term cost-effectiveness of outright purchases may seem appealing—especially from a Total Cost of Ownership perspective—that bureaucratic processes, paperwork trails and the potential risks associated with contract rollovers not proceeding highlight the advantages of an OpEx model, especially in the short term.

Effective communication strategies

Successful fleet transition from fuel to electric requires transparent and proactive communication across departments. Engaging key stakeholders, such as the fleet manager, operations manager and maintenance managers early, can speed up the decision-making process and gain the support needed.

Involving all affected parties in the decision-making process fosters ownership and aligns everyone towards the same transition goals. By opening communication channels across departments, organisations can overcome barriers they might experience during fleet transition.

Braden’s insights emphasise the importance of having effective communication strategies during fleet transition. He highlighted the challenges his customers face in navigating internal processes, particularly when seeking approvals for capital expenditures.

‘Red tape can be a nightmare!” he says.

For fleet managers who understand budgeting, their concern might lie with getting sign-off from their director, which is why it’s important to keep them informed right through from planning to transition. It’s in a fleet manager’s best interests to take their transition plans to upper management as early as possible. Conversely, it is also just as important for upper management to include the fleet teams and operators in the transition process, as ultimately the success or failure of the transition will depend heavily on their attitude towards it!

Getting the financial data and the pros and cons of leasing vs purchasing in front of directors or other final decision-makers gives them the information they need to make an informed decision. They might see leasing as a viable option for acquiring the electric fleet their organisation needs. They might also see the long-term benefits of buying equipment outright and shift budget from OpEx to CapEx to enable that up-front purchase.

By engaging with key stakeholders and opening communication channels with all affected parties, organisations can streamline decision-making processes and speed up their fleet transition efforts.

Navigating change management

Change management poses a significant challenge during fleet transition, well beyond the CapEx vs. OpEx debate.

For operators, they have concerns such as ‘range anxiety’ where they’re worried they’ll be left stranded by an electric machine that’s run out of battery power. With their diesel-powered machines, they simply refuel, but they can’t do that if they run out of battery.

But it’s not hard to address these concerns. A trial period with an electric machine will prove to operators that these machines can run for a full 8-hour shift. Guarantees of fast technical support in case of breakdowns also helps ease worries.

With leased equipment, any maintenance works or repairs would typically go through the leasing company. And while many use a fleet company to lease the equipment, many prefer to go directly to EcoTeq for maintenance. This avoids any duplication of effort for no real gain.

“By going direct, within 24-48 hours they get a solution. It’s much quicker to go direct for servicing and maintenance,” says Braden.

By offering tangible assurances and opportunities for hands-on experience, organisations can ease concerns, which can help with the adoption of the electric fleet.

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