Riverside, Mo.-based Orange EV, a maker of “pure electric” terminal trucks, says it’s the first in its industry to win approval for California incentive vouchers of $95,000 per Class 8 Electric Truck.
California fleets can save at least $95,000 per truck on the purchase of new T-Series trucks with extended duty battery pack. Orange EV says incentive programs can pay more than half of a vehicle’s purchase price, with additional savings realized with lower operating costs.
Orange EV electric terminal trucks have been operating up to 24+ hours per charge in such industries as railroad intermodal, LTL freight, manufacturing, retail distribution, waste management and warehouse container handling. Businesses and organizations with fleets in California can get a preliminary voucher amount of $95,000 per truck, increasable up to $120,000 and stackable with other incentive programs to lower initial purchase price.
Vouchers from California’s Hybrid & Zero-Emission Truck & Bus Voucher Incentive Project “dramatically simplify and speed up the process of obtaining funds, thereby accelerating vehicle deployment,” said Mike Saxton, Orange EV chief commercial officer. “Orange EV’s T-series and the corresponding voucher amount are all pre-approved, eliminating uncertainty and enabling fleets to execute deployment plans without having to go out-of-pocket for the additional capital.”
The voucher request, including purchaser terms & conditions, is a total of four pages long; vouchers can be approved within days. Participating fleets commit to operating trucks in California for a minimum of three years, after which they may redeploy vehicles as needed. HVIP funds are paid directly to Orange EV, thus directly reducing the capital fleets need to purchase T-Series trucks.
Orange EV says incentive programs that can pay more than half of vehicle purchase price. The balance can be financed, further reducing initial cash outlay and helping fleets pay the balance from savings in large expense items like diesel fuel. Fleets can spend annually on diesel fuel half or more of what they spend to buy the diesel truck in the first place. The penalties companies pay for operating older, dirtier trucks in California further increase the true cost of diesels. Because fleets can see lower total cost of ownership with electric compared to diesel terminal trucks, financing enables them to deploy electric trucks using budgets planned to buy and operate diesels. Incentives will continue to be an important tool to accelerate initial deployments, but it’s per-truck savings that will drive fleet-wide adoption, the company says.
“It makes financial sense to begin deployment now” according to Saxton, “but if the financial upside of going electric isn’t enough, regulatory mandates have increased the urgency.” Strict mandates like those in California Assembly Bill 32 aim to reduce GHG emissions to 1990 levels by 2020, with another 80 percent reduction below 1990 levels by 2050. Companies adopting now using available incentives are renewing their fleet assets and lowering annual operating costs at a lower capital investment.