Proterra Electric Bus Battery Service Agreements

Proterra is a leader in the design and manufacture of zero-emission vehicles that enable bus fleet operators to eliminate the dependency on fossil fuels and to significantly reduce operating costs while delivering clean, quiet transportation to the community. Proterra has sold more than 375 vehicles to 36 different municipal, university, and commercial transit agencies in 20 states across the USA. In order to address cost barriers and perceived technology risks that have largely inhibited a switch from diesel to electric buses, the company is launching a new, battery-lease financing model that will make its buses the same price or cheaper than diesel buses from day one.
Champion

Alan Westenskow

Director of Business Development Proterra

Key metrics

Metrics Value
Percent emission reduction achieved by a Proterra vs. diesel bus ~100%
CO2 emission reduction of Proterra vs. diesel bus over 12-year life by 3,600,000 lbs,/td>
Number of diesel buses Proterra aims to replace through 2020 1,500
"Proterra's innovative battery financing is helping customers deploy more zero-emission buses at a lower cost and lower technology risk."
- The Fire Team

Scope

  • Sector: Energy efficiency, Sustainable Urbanization, Transportation
  • Geography: United States

Action plan

  • January 2017: Complete first signed and executed battery service agreement contract with a Proterra customer
  • April 2017: Complete funding of first battery service agreement
  • August 2017: Complete creation of financing arm that can be used to finance battery service agreements with scale
  • January through August 2017: Actively engage new Proterra customers to use battery service agreements with their new bus orders

Main barriers addressed:

  • Higher upfront cost of electric buses vs. diesel buses
  • Perceived technology risks of batteries
  • Unknown future costs of replacement batteries