TCO (Total Cost of Ownership)
A full-cost view of buying and operating a vehicle or fleet over its lifecycle, not just the purchase price.
Technical Details
For electric fleets, TCO often includes higher upfront CAPEX (vehicles + charging + grid connection) and lower ongoing OPEX (energy + maintenance). Electricity tariffs and demand charges can materially shift the result.
Fleet Applications
Used to justify electrification by comparing diesel vs electric costs over multiple years, including infrastructure investments and energy optimization.
Related Terms
Smart Charging
Intelligent management of EV charging sessions to optimize energy consumption based on grid constraints, energy prices, and vehicle schedule requirements.
Demand Charge
A fee on a commercial electricity bill based on the highest amount of power (kW) drawn during a 15-minute interval in the billing period.
CAPEX (Capital Expenditure)
Upfront investment spending on long-lived assets such as vehicles, chargers, and depot/grid upgrades.
OPEX (Operational Expenditure)
Ongoing operating costs such as energy, maintenance, labor, and administration.