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Written By: Lisa Drake, Assistant Director, Fleet Electrification
Future of Fleet
You’ve probably heard of miles per gallon (MPG), but you may not be familiar with the term miles per gallon equivalent (MPGe).
What Is MPGe?
Miles per gallon equivalent is the standard metric set by the U.S. Environmental Protection Agency (EPA) for fuel efficiency for vehicles that run on alternative energy sources, like electricity. Plug-in hybrid electric vehicles (PHEVs) may have both an MPG and MPGe, since they run on both gasoline and electric energy. The MPG for a PHEV denotes gasoline used when the battery is out of charge, and the MPGe refers to an all-electric scenario.
MPGe was developed by the EPA in 2010. Although it’s not a 1:1 comparison to MPG, it enables drivers to make a more informed decision when contemplating an energy-efficient vehicle. Each new electric vehicle has its MPGe rating displayed on its EPA fuel efficiency label, information that can also be found on the EPA website.
MPG and MPGe Calculation Explained
Just like MPG, MPGe is an average mileage comparison – how many miles can a vehicle travel per gallon of gasoline (MPG) or how many miles can an EV travel on the equivalent amount of electrical energy (MPGe). The energy contained in 1 gallon of gas is equivalent to 33.7 kWh (kilowatt hours) of electricity. So for example, if an electric vehicle can travel 100 miles on 33.7 kWh of electricity, it would be rated with an MPG equivalency of 100 MPGe.
EPA EV Window Sticker Explained
The label includes mandated information about any new vehicle for sale including fuel efficiency, fuel costs, and greenhouse gas and smog ratings. For electric vehicles, the label has some additional pieces of information specific to EVs. Here’s a brief explanation of key elements on the EV labels.
- Kilowatt-Hours Per 100 Miles: The EPA standard of measuring energy efficiency in EVs.
- MPGe: Miles per gallon equivalent
- Annual Fuel Cost: This is estimated based on an annual driving range of 15,000 miles and 12.5 cents per kWh electricity cost.
- Driving Range: Estimated driving range, calculated for when a vehicle has 90% charge.
- MPGe City: 127
- MPGe Highway: 108
- MPGe Combined: 118
- kWh/100 mi: 29
- Driving Range: 259
- Greenhouse Gas Rating: 10 out of 10 (best possible)
- Smog Rating: Depends on state
- Savings In Fuel Costs Over 5 Years: $6,500
- Annual Fuel Cost: $550
Cost Savings of Electric Cars
EVs can be more expensive to purchase, but the total cost of ownership can be lower because electricity powered motors are more efficient (and cheaper to operate) than gas-powered engines. Most EVs can be over 90% efficient in converting energy into power while most gas-powered vehicles are only around 40% efficient. Since less energy is wasted, electric cars become more cost-effective. EVs also have significantly lower maintenance costs because there are so few moving parts and reduced maintenance needs.
RELATED READING: Why the Time to Prepare for Fleet Electrification Is Now
EV Fuel Efficiency Comparison Chart
This chart compares the fuel efficiency of a few recent EV models.
Combined MPGe | kWh/100 Miles | Annual Fuel Cost | Range | |
2022 Tesla Model S | 120 MPGe | 28 kWh/100 miles | $550 | 405 miles |
2022 Chevrolet Bolt EV | 120 MPGe | 28 kWh/100 miles | $550 | 259 miles |
2022 Rivian R1S | 60 MPGe | 49 kWh/100 miles | $950 | 316 miles |
This chart was compiled using information from the U.S. Department of Energy. Annual fuel cost is based on 45% highway and 55% city driving, 15,000 annual miles, and recent fuel prices.
Frequently Asked Questions
Can Merchants Fleet help my fleet acquire electric vehicles, too?
Yes! Our EV experts offer consulting services to help you find models that are a great fit for your fleet and your budget and can help you acquire the latest models like the BrightDrop Zevo 600 electric cargo van and Chevrolet Silverado EV pickup truck.
When is the Right Time to Take My Utility Fleet to Electric Vehicles?
Our consulting team can help tell if EVs are right for you through AdoptEV, our EV adoption solution that helps you get from concept to execution. We’ve made significant commitments to OEMs, and we’re on the front lines to get vehicle allocations and ensure there is EV availability for our clients.
How do I know if transitioning from ICE vehicles to EVs is the right decision for my fleet?
We understand that there’s a lot to consider, which is why we recommend exploring our fleet electrification resources. Just remember that it’s important to educate yourself and gather as much information as possible to learn more about the EV landscape, including makes and models and related technologies. The Merchants Fleet EV consultants and experts are also available to help answer your questions and help you navigate the ICE vs. EV process.
What are the benefits of adding EVs to my fleet?
EVs offer a lower total cost of ownership (TCO) for fleets and are one of the fastest ways to hit environmental, social, and governance (ESG) goals. Additionally, many states have plans in place to completely phase out the sale of new internal combustion engine (ICE) vehicles over the next 10-15 years.
How can Merchants Fleet help my transition to EVs?
From simple to complex, Merchants has the experience, skills, tools, and expertise to enable your transition to EV. It’s no secret that the EV movement is happening, and we’ll be your trusted partner who can help you stay ahead of the curve and achieve both your fleet and sustainability goals. A fleet can make a large impact on sustainability and vehicle operations and working with a fleet management company is a low-risk way to do that. They are a viable option for your business and total cost of ownership.
About the Author
Lisa Drake
Lisa Drake serves as Assistant Director, Fleet Electrification and joined Merchants Fleet in 2021. Drake brings close to three decades of environmental and sustainability expertise to help Merchants drive electrification in the fleet industry. At Merchants, she drives progress on electrification of fleets both internally and for our clients and develops new tools and resources for successful EV adoption.
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