Retrofit Revolution: How Small Fleets Are Driving the EV Transition – and Saving Money

Los Angeles, CA – November 8, 2023 – While much of the electric vehicle (EV) conversation centers on new vehicle production and consumer adoption, a quiet revolution is underway, powered by small businesses and innovative solutions. A new partnership in California is proving that transitioning fleets to electric power doesn't require deep pockets or replacing every vehicle. Instead, it’s leveraging the power of retrofitting existing trucks, coupled with flexible financing, to unlock affordable EV access for businesses often left behind in the green transition.

Evolectric, a leader in commercial truck electrification, has teamed up with financing provider AFLC and the California Air Resources Board (CARB) through its Innovative Small E-Fleet Pilot Project (ISEF) to demonstrate a viable pathway to cleaner transportation for small and medium-sized enterprises. The collaboration tackles a critical barrier to EV adoption: the high upfront cost of new vehicles.

“For many small businesses, replacing an entire fleet with new EVs simply isn’t feasible,” explains a source close to the project. “They need solutions that work with their existing assets, not require a complete overhaul. This partnership is demonstrating that’s possible.”

Beyond New Batteries: The Rise of Vehicle Retrofitting

The core of this solution is Evolectric’s CircularEV™ technology, which transforms existing diesel trucks into zero-emission vehicles. Rather than scrapping functional trucks, the company replaces the internal combustion engine with an electric powertrain, breathing new life into aging fleets. This approach offers significant cost savings compared to purchasing new EVs, while also reducing waste and promoting a circular economy.

“The environmental benefits of retrofitting are substantial,” a researcher specializing in sustainable transportation notes. “Extending the life of existing vehicles reduces the demand for new manufacturing, conserving resources and lowering carbon emissions associated with production.”

According to industry reports, the electric vehicle retrofitting market is poised for substantial growth, with a projected compound annual growth rate of 25% through 2030. This trend is driven by increasing demand for cost-effective solutions and a growing awareness of the environmental benefits of extending vehicle lifecycles.

Flexible Financing: Bridging the Gap

While retrofitting significantly lowers the cost of transitioning to electric power, it still requires a substantial upfront investment. AFLC is stepping in to bridge this gap by providing flexible financing options tailored to the needs of small businesses. These options include low-interest loans and lease arrangements, making electric vehicle adoption more accessible and affordable.

“Traditional financing can be a major hurdle for small businesses,” a financial analyst explains. “They often lack the credit history or collateral required to secure favorable loan terms. AFLC is specifically designed to address this challenge, providing accessible financing solutions that empower businesses to invest in sustainable transportation.”

CARB’s ISEF program plays a critical role by providing financial incentives to further reduce the cost of electric vehicle adoption. The program offers grants and rebates to small businesses, helping to offset the upfront costs of retrofitting and financing.

Circular Fashion Meets Clean Transportation: A Synergistic Partnership

The project’s impact extends beyond just transportation. Circular Fashion LA, a non-profit dedicated to promoting sustainable fashion practices, is utilizing the newly electrified truck for its Mobile Circular Fashion Lab. This demonstrates a unique synergy between two seemingly disparate industries, highlighting the potential for cross-sector collaboration to drive sustainability.

“We’re committed to reducing our environmental footprint in every aspect of our operations,” a representative from Circular Fashion LA shared. “Utilizing an electric truck aligns perfectly with our mission, allowing us to deliver our services in a more sustainable and responsible manner.”

The partnership underscores the growing recognition that addressing climate change requires a holistic approach, encompassing all sectors of the economy.

Challenges and Future Outlook

While the California partnership offers a promising model for accelerating EV adoption, challenges remain. The availability of qualified technicians to perform retrofits is limited, and the infrastructure to support electric vehicle charging is still developing.

“Scaling up retrofitting operations requires a skilled workforce,” an industry expert cautions. “Investing in training and education is essential to ensure that there are enough qualified technicians to meet the growing demand.”

Despite these challenges, the project’s success is paving the way for wider adoption of retrofitting technology. Several other states are exploring similar initiatives, and industry analysts predict that retrofitting will become an increasingly important part of the EV landscape.

“This isn’t just about replacing vehicles; it’s about reimagining transportation,” a source involved in the project emphasizes. “By embracing innovation, collaboration, and a circular economy approach, we can create a more sustainable and equitable future for all.”

The California partnership demonstrates that transitioning to electric power doesn't require a complete overhaul of existing fleets. By leveraging the power of retrofitting, flexible financing, and cross-sector collaboration, small businesses can play a vital role in driving the EV revolution – and saving money in the process.