Proterra Electric Bus Battery Service Agreements

Proterra addresses the high upfront cost and perceived technology risks of electric buses by selling the vehicles at the price of conventional diesel buses and utilizing a 12-year battery service agreement. This model shifts battery ownership and performance risk to Proterra, converting a capital expenditure into an operating cost funded by the lower operating expenses of electric buses.

• Electric buses currently face adoption barriers because they cost 50% more than conventional diesel counterparts and carry perceived risks regarding battery technology and future replacement costs.
• Proterra's business model involves selling electric buses for approximately $500,000—the cost of a diesel bus—and implementing a 12-year battery service agreement where Proterra retains ownership and guarantees battery performance.
• The service agreement allows customers to achieve a cost breakeven point from the first day by converting capital costs into operating costs, which are then covered by the operational savings of the electric bus.

APA

Westenskow, A. (2016). Proterra Electric Bus Battery Service Agreements. Climate Policy Initiative. https://www.climatepolicyinitiative.org/proterra-electric-bus-battery-service-agreements/

Chicago

Westenskow, Alan. Proterra Electric Bus Battery Service Agreements. Climate Policy Initiative, 2016. https://www.climatepolicyinitiative.org/proterra-electric-bus-battery-service-agreements/.

Wikipedia

{{cite report |last1=Westenskow |first1=Alan |title=Proterra Electric Bus Battery Service Agreements |publisher=Climate Policy Initiative |date=30 September 2016 |url=https://www.climatepolicyinitiative.org/proterra-electric-bus-battery-service-agreements/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{westenskow2016proterra, author = {Westenskow, Alan}, title = {{Proterra Electric Bus Battery Service Agreements}}, institution = {Climate Policy Initiative}, year = {2016}, month = sep, url = {https://www.climatepolicyinitiative.org/proterra-electric-bus-battery-service-agreements/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }