Alene Walkington, Program Manager at EnergyRight for Business & Industry gave this presentation at the Forth Electric-Powered Equipment webinar on May 10, 2022.

1. EnergyRight.com
Forklifts
Utility Programs
Alene Walkington
Program Manager
EnergyRight® for Business & Industry

2. Tennessee Valley
Authority (TVA)
TVA works in partnership with 153 individual local power
companies to keep safe, clean, reliable and affordable public
power flowing to homes and businesses throughout the
seven-state Tennessee Valley region.
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3. TVA EnergyRight and the TVA mission
Enable LPCs and TVA to
reduce costs, improve
reliability and provide
valuable services to
consumers
Provide a clean, emission-free
resource alternative to
traditional generation
Save consumers’ lowering rates
for all consumers and driving
local jobs and economic growth
Energy Environment Economic Development
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4. TVA Energy
Services &
Programs
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From energy-saving advice to trusted contractors,
we partner with local power companies to
transform lives and communities with innovative,
industry-leading energy solutions
TVA EnergyRight programs
• Electrification
• Non-Road Electric Vehicles  Forklifts
• Electric Vehicles
• Demand Response
• Federally mandated programming
• Energy efficiency initiatives

5. Program Timeline: Forklifts
Non-Road Electric Vehicles (NREV)
2015
NREV Program
Launches with the
mission to reduce
carbon output in
the valley.
Class 1 & 2
replacing class 4 &
5 was the primary
target for this
initiative.
2017
NREV gets included
as a core energy
efficiency incentive
in the Energyright
Program.
NREV companies
are included into
the trade ally
Preferred Partners
Network (PPN)
members
2018
Energyright
Focuses on
Electrification.
Incentive focuses
on IC replacement
and new electric
forklift additions.
Incentives go
beyond class 1 & 2.
Class 3 forklifts
scissor lifts, golf
carts, tugger and
more are now
included as
offerings
2020
Program focuses on
UVGI to help with
the global
pandemic and
pauses incentives
of other incentives.
2022
Forklifts brought
back into the
program with only
a focus on class I &
II.
These represented
the bulk of
submitted projects
in the past.
Building Types for Forklift Projects
78% - Industrial Shift Operations
18% - Warehouse
4% - Other
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6. Project Highlight
7
Facility Type:
Bottling Plant
Measure:
Automated Forklifts (7)
Added Load:
79,394 kWh
Incentive:
$14,000
A family-ownedcompany isone ofthelargestsuppliersofprivatelabelbottled
waterinNorthAmerica.
Atthislocation,thecompany usedincentivesfromTVAEnergyRighttoaddseven
automatedforkliftsin ordertokeeptheirshipping up topace withtheaddition
of anew productionline attheirfacility.

7. EnergyRight.com
Electric Forklifts:
Industry, Benefits &
Barriers

8. Electric Forklifts
• Warehousing and storage
• Manufacturing
• Large retail
• Shipping & Storage
• Construction
• Agriculture
• Commercial manufacturing
• Mining
• Health & technology operations
• Waste management
Electric forklifts, or lift trucks, have been material-handling
workhorses for years. Recent technology advances have boosted
electric forklift performance and utility, enabling them to compete with
internal combustion (IC) counterparts indoors and out, while
delivering energy and emissions benefits and substantial cost
savings over their lifetime.
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9. Forklift Industry
• Market steadily
increasing market
share since 1990’s
In 2008, 64% of
forklifts are electric
Class 1 electric
forklifts could replace
50% to 80% of
existing Class 5 units
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10. Electric Forklifts
How they work?
• Electric forklifts operate just like Internal Combustion (IC)
• Powered by industrial batteries instead of propane, diesel, natural gas or gasoline fuel
• Use power electronics-based motor controllers and hoist functions
Forklifts are classified by vehicle design and power source
• Class 1: counterbalanced rider trucks; lift capacity of 3,000 – 20,000 lbs.
• Class 2: narrow-aisle forklift; lift capacity of 3,000 – 5,500 lbs.
• Class 3: electric hand/rider or pallet trucks
• Class 4: internal combustion
• Class 5: internal combustion
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11. Benefits of Electric
Capital
Benefits
• Utility Incentives can help reduce cost anywhere 5-20% of the initial investment.
• Long term reduction in costs allows capital to be reallocated to other parts of the business.
• Payback period is usually less than two years, depending on energy prices & equipment usage.
Lower
Emissions
• Electric forklifts reduce site emissions. A step toward zero emissions.
• This is critical aspect with aggressive carbon footprint reduction goals.
• Improved air quality allows for a healthier work zone: indoor/outdoor air.
Better Working
Environment
• With no exhaust output, working areas being cleaner, safer and easier to work in.
• Less vibration reduces operating noise, allows for workers to be more aware of their surroundings and cuts
down on work fatigue.
• Multiple ways to charge: multiple batteries at once, fast charger, multi-shift, plug-in during breaks, time of use.
Reduced
Operating Costs
• Electric forklifts have 90% fewer moving parts than their IC counter parts.
• Fuel costs can be cut up to 80% due to not requiring gas/propane or oil. Eliminates hazardous fuel storage.
• A wide variety of chargers are available to accommodate one, two or three shift operations.
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12. 13
Facility Type:
Industrial
Measure:
Forklifts
Added Load:
104,355 kWh
Incentive:
$11,000
Tennessee-basedcompany thathadgrowntobecome oneofthelargestwholesale
distributorofpromotional& bargainbookshasalargewarehouse
Forthisproject,thecustomerutilizeda NREV incentivefromTVA toleaseelevenelectric
forkliftsthatwillbeusedintheir900,000squarefootdistributioncenter.Thesenew
forkliftseliminatetheneedforthecustomertopurchasefuelandwillruncleanerthanthe
gas-poweredforkliftstheypreviouslyused.
Project Highlight

13. Barriers to Entry & Limitations
Higher Capital
Cost
• Both Electric & IC
forklifts can cost $30-
40k but batteries &
charging equipment
add to the upfront
costs.
• This can be 20-30%
higher in cost
depending on battery
type and spec.
Capability
Assumptions
• Batteries cannot last a
full shift
• Unsafe in wet weather
outdoors
• Underpowered:
demanding tasks
above 40,000 pounds
may require lift
capacity offered by IC
forklifts.
Training &
Education
• Staff will need to be
trained on the new
functions and
operating efficiencies
of new equipment.
• Additional signage &
operator training
required due to lower
operation sound, and
smooth driving
characteristics
Maintenance
• Not maintenance free.
• Batteries chargers,
and forklifts still need
to be checked on a
Misconceptions about
electric forklift
reliability due to lack of
regularly scheduled
maintenance to
batteries & chargers
which can result in
pre-mature failure.
Infrastructure
• Business operations
may not evaluate daily
needed to convert
• Old charging
technologies required
battery swapping,
separate charging
rooms, additional
equipment, manpower
& weekly maintenance
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14. Current Issues
Supply Chain:
• Due to the global pandemic, supply of electric forklifts
has been severally impacted.
• Lead times for equipment has increased tremendously,
resulting in 40-to-60-week lead times. Customers could
be waiting more than a year to receive equipment.
Work Arounds:
• Used forklifts have become more popular has made-to-
order lifts are extremally hard to get. However, with
high demand the supply for these is minimal.
• Customers are looking for “off-the-shelf” units instead of
made-to-order. While this can help elevate pressure for
equipment needs its not always ideal due to specific
working requirements.
• Extending current leases one-three more years can be
a viable option if the forklifts are currently fulfilling the
needs of the customer.
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15. Utility Program
Project
Considerations
• Equipment type
• Used or new
• Time of use rates
• New or conversion to
electric
• Purchase or Lease
• Hours of operation
• Trade ally network
available or a requirement
• Documentation
• Process to apply
• Removal of old equipment
• Available funding
Equipment Type Lift Capacity
Annual Energy Impact
kWh/unit
Class I - Rapid Charging 3,000 - 20,000 11,342
Class II - Standard Conventional Charging 3,000 - 5,500 9,485
Class III - Hand Electric Pallet Trucks 3,000 - 20,000 2,940
TVA program impacts: Carbon Reduction, Energy
Efficiency, & Electrification
Project Implementation & Guideline Considerations
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16. EnergyRight.com
Thank You
Alene Walkington
Program Manager
EnergyRight® for Business & Industry