Over the course of five years, the number of electric vehicle (EV) registrations in the U.S. commercial sector grew from 4,000 in 2019 to 87,000 in 2024. In 2024 alone, over 15,000 medium and heavy-duty electric vehicle (MHDEV) registrations were recorded in the U.S. EV technology has advanced enough to where MHDEVs are a viable, economical, and sometimes the superior option as compared to their internal combustion engine (ICE) counterparts.
MHDEVs generally have lower maintenance costs, due to having fewer moving parts than ICE vehicles, resulting in less wear and tear, reduced maintenance needs (no oil changes, transmission fluid flushes, fewer moving parts), and lower repair costs. The reduced maintenance costs lower total cost of ownership (TCO) over the lifetimes of the vehicles to be less than that of ICE vehicles.
While the performance of MHDEVs has been improving by leaps and bounds, the infrastructure supporting these vehicles needs to stay apace. Chargers are the most recognizable part of that infrastructure, but software is arguably the most important component. Without the right software solutions to manage utility grid demand and costs, operating MHDEV work fleets borders on the impossible.
Why is software so important to EV charging, especially for fleets? Powering a MHDEV fleet doesn’t just involve installing enough chargers and plugging them into the grid. Accommodating and optimizing for MHDEVs requires a more proactive, infrastructure-heavy, and technologically nuanced approach than for ICE fleets.
Simply put, software is crucial to ensuring that fleets are charged when they are needed, using the grid power that is available at a cost that is affordable. The “gas station approach” applied to ICE vehicles in which trucks are fueled as quickly as possible once they are close to empty does not apply to MHDEVs. Charging (or fueling) MHDEVs, can be more accurately compared to charging a cell phone in that most MHDEV vehicles can be charged overnight or while their drivers are off-duty or doing something else.
With proper energy management software, fleet managers can charge multiple vehicles slowly during the vehicles or drivers off-duty time, considering multiple disparate factors, such as range, route profiles, demand, availability of solar and storage, and the cost of electricity. Adding solar power and energy storage to an MHDEV charging station can have enormous benefits in allowing the system to manage within its existing grid capacity and greatly reducing the potential electricity demand costs that would otherwise be triggered by the charging sessions.
Software helps charging infrastructure operate efficiently within the parameters set by the grid. The U.S. grid is a major bottleneck when it comes to the growth of EV fleets. Distribution systems have struggled with meeting EV charging demand. Spikes in demand created by EV charging can lead to thermal overloads on service transformers and distribution feeders, causing equipment failure, voltage fluctuations, and even localized brownouts or blackouts.
Grid limitations combined with high usage also lead to the outsized cost of demand charges, or fees that utilities impose based on peak power usage. Demand is assessed in 15-minute intervals throughout each billing month. Demand costs are assessed at a very high rate because it is difficult for utilities to instantaneously deliver large amounts of power with no notice. Customers are usually charged for the highest 15-minute demand interval that occurs throughout the month.
In California and other high-demand states, demand costs can be as high as $50 to $80 per kilowatt during the highest usage 15-minute interval each month, triggering potentially thousands of dollars of added demand charges from EV charging. As a result, even a short charging session at the wrong time can lead to a doubling or tripling of electricity costs for the month. A good software platform can prioritize charging for vehicles needed the soonest, stagger charging to ensure that not all vehicles are drawing maximum power at once, and limit total power draw by spreading the energy delivery over time.
Software also helps with the integration of distributed energy and energy storage into charging systems. Operators installing EV charging can apply to expand existing grid capacity, which can be an expensive and time-consuming process. A good alternative to grid upgrades is opting for integration of solar and energy storage, creating a microgrid capable of semi-autonomous operation, and even off-grid capabilities. Software will then prioritize delivery of different energy sources throughout the day, taking advantage of solar power during the sunny parts of each day, making use of the grid when prices are low or at nighttime, and switching over to stored power during peak demand times or to bank solar energy for use at night.
Additionally, software enables MHDEV fleet owners to efficiently utilize Level 2 chargers, forgoing upgrades to much more expensive Level 3 charging options. A commercial Level 2 charger typically costs around $3,000 whereas a Level 3 charger can cost $50K or more and requires an expensive 480V, three-phase electrical circuit that will cost thousands of dollars to construct.
While an overlooked part of EV charging, software allows fleet managers to seamlessly integrate their charging system into the grid, serve as a robust management solution, and create a positive user experience. As more businesses recognize the advantages of electrifying their medium and heavy-duty fleets, the role of intelligent software solutions will only grow, and help unlock the full potential of electric commercial vehicles.
about the author
Tom McCalmont is the CEO of Paired Power.
