Proterra Electric Bus Battery Service Agreements

This case study describes Proterra's battery service agreements, which aim to accelerate the adoption of electric buses by reducing upfront costs and mitigating technology risks for fleet operators.

• Electric buses face adoption barriers because they currently cost 50% more than conventional diesel vehicles, and operators perceive risks regarding battery technology and the costs of future replacements.
• Proterra addresses these barriers by selling battery electric buses at the price of a conventional diesel bus, approximately $500,000, and utilizing a 12-year battery service agreement.
• Under the service agreement, Proterra retains ownership of the batteries and guarantees a specific performance level, effectively converting a capital expenditure into an operating cost. This structure allows customers to use operating savings from the electric bus to pay for the batteries, potentially achieving a cost breakeven point on the first day compared to diesel buses.

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} }