Navigating the Road Ahead for Electric School Buses

The federal funding outlook for electric school buses (ESB) is at best uncertain, and school bus fleet managers are looking for alternatives. The good news is that there are numerous pathways open to help them switch to electric bus fleets and deliver clean rides for students. These include state and regional funding opportunities as well as innovative private financing solutions.

When ESB batteries are viewed as assets to be operated over a longer time horizon, their “residual value” can be calculated and applied upfront to further reduce a project’s costs. Residual value is the battery’s estimated worth at the end of its driving life based on a “second life” in a battery energy storage system. Having a plan to repurpose ESB batteries and derive greater residual value from them improves the economics of fleet electrification.

“Understanding residual values isn’t just about predicting the future – it’s about unlocking financing for zero-emission buses today,” explained Kabir Nadkarni, EV industry assessment specialist at CALSTART.

Zenobē has used its experience with second-life bus batteries and maximizing residual value in fleet batteries to contribute to CALSTART’s Innovative Financing Toolkit. This is a valuable resource for learning more about electric fleet financing.