The extensive work and planning involved in electrifying a logistics fleet and setting up charging infrastructure has significant upfront financial costs, says Samira Dadgar, partner, global investment and innovation incentives at Deloitte LLP.
“Governments provide lots of incentives across the country, but what we hear from clients a lot of times is [they have difficulty] navigating through these incentives,” says Dadgar.
There are various incentives fleets can take advantage of for vehicle purchases, site assessments, and piloting electric vehicle operations.
For charging infrastructure there is the Zero-Emission Vehicle Infrastructure Program (ZEVIP) that gives a maximum of $10 million for a project.
Different provinces also have their own incentives that can be stackable with federal funding, says Dadgar.
In order to take advantage of these incentives, “my best recommendation is really to try to plan ahead,” says Dadgar. “There are incentives that only have one or two intakes per year, so you’ve got to really plan ahead [and] have a proper budget for the next few years.”
In Budget 2023, the federal government also announced a Clean Technology Investment Tax Credit for companies that are deploying clean infrastructure, says Dadger. With this tax credit, fleet operators can get up to 30 per cent of the capital cost back in cash for installing charging infrastructure.
“There is a higher purpose we’re all driving towards as well as the sustainability of the business model and financial returns — and collaboration is key,” says Lamarsh.
“The more that we can be learning from each other and supporting each other, the more that financial institutions and professional services can be building better fit-for-purpose solutions for our customers [and] government can be appropriately fitting regulation.”
This article was originally published by Electric Autonomy Canada.