- GNA Insight
TCO Big Driver for Fleets Considering Clean Tech
November 10, 2021
Source: ACT News
For a business owner or fleet manager, transitioning away from diesel to a cleaner fuel can mean a big shift in operating procedures. Costs will shift in short term operations as well as the lifecycle of each vehicle purchase. Understanding the total cost of ownership (TCO) is the most important part of making alternative fuel vehicle purchase decisions.
Fleets in California are not only considering the transition to medium- and heavy-duty alternative fuel vehicles, many are making plans and researching which solution best fits their operations. Part of that research includes understanding the TCO for each of the different clean tech options currently available.
Critical factors for calculating TCO include vehicle procurement and maintenance costs, as well as asset life and fuel expenses. Fleets and businesses that are accustomed to traditional diesel fuel purchases often take fuel price volatility as a given. Alternative fuels offer a higher level of stability in lifecycle energy costs, and this is one key component of the total cost of ownership analysis.