Green Alternative Systems Fleet Propane Conversion Saves Costs and the Environment
Often in business you discover that sometimes you have to spend money to save money. Investing in the infrastructure of your company can radically reduce costs, fattening your bottom line. For fleet managers, a fleet conversion from gasoline to propane saves money in three key areas.
At the beginning of 2016, gasoline prices in the United States averaged $2.28 a gallon, with some areas pricing gas as low as $1.50. Despite the drop in prices over the last four years, gasoline prices are still not as competitive as the price of propane.
The typical fleet manager will save between 30 and 50 percent on fuel expenses after a fleet propane conversion; however, this is not the only fuel savings they’ll see. Propane fueled vehicles are more fuel efficient than their gasoline counterparts, so they not only burn cheaper fuel, they burn less of it.
When managing a fleet of dozens of vehicles, even the smallest maintenance expenses are magnified. The cost of replacing filters and belts prematurely wrecks the fleet’s budget quickly.
Fleet propane conversion can reduce your total maintenance expenditures by up to 40 percent in just the first year. The maintenance savings are threefold. First, propane isn’t affected by temperature changes, which places much less strain on the engine and ignition systems. Second, propane powered vehicles almost never suffer from vapor locking, which destroys important pieces of the fuel system including the fuel pump. Finally, propane isn’t reactive, which means it will not erode your pipes or mufflers.
The US government, in an effort to promote alternative fuel consumption, created the Aftermarket Alternative Fuel Vehicle (AFV) Conversion Credit. The tax credit applies to any vehicles put through a fleet conversion that moves from gasoline to one of the qualified alternative fuels. The credit can range from 30 to 50 percent of the cost of installation.
Additionally, government subsidies paved the way for the construction of hundreds of alternative fueling stations throughout the US, with almost 1,000 in operation.
Your investment in fleet conversion to an alternative fuel will pay off faster than you realize. Start with the assumption of an initial cost of $15,000 per vehicle for the conversion. With an average fuel consumption of 12 mpg and an annual mileage of 25,000, your cost savings will pay for the fleet propane conversion in approximately 3 years. Combine this with your reduction in hydrocarbon emissions and you have a fleet that saves money and the environment.