Financial Analysis of Battery Electric Transit Buses

Research output: NRELTechnical Report


A baseline bus fleet and battery electric bus investment scenario was developed based on the average or common parameters of existing battery electric bus (BEB) fleets. A discounted cashflow analysis was done that found the baseline fleet to have a net present value of $785,000 and simple payback of 3.3 years. The 33 main parameters were then swung ±50% to determine their relative influence on NPV and were ranked accordingly. Then parameter volatility was estimated by dividing the range of observed values by the baseline value. The parameters that are most influential and volatile were highlighted as the ones fleet managers should focus on when determining if BEBs are a good investment option for them. These top parameters are 1) BEB purchase price, 2) purchase price of foregone diesel bus, 3) grant amount, 4) maintenance costs of foregone diesel bus, 5) annual vehicle miles traveled.
Original languageAmerican English
Number of pages45
StatePublished - 2020

NREL Publication Number

  • NREL/TP-5400-74832


  • battery electric bus
  • charger
  • economic
  • electrification
  • fleet
  • mass transit
  • net present value
  • payback
  • return on investment
  • transit bus


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