PAYS for clean transport applies the same on-bill investment concept to the high upfront costs of electric mobility, starting with clean transit. An EV bus and charger can cost as much as 150% of a diesel bus, presenting a capital cost barrier that prevents transit agencies from buying the cleaner technology, despite their potential long-term cost effectiveness and significant environmental benefits.
With PAYS for clean transport, electric utilities can capitalize the batteries and charging equipment which reduces the upfront cost to the bus service provider (the customer). The utility then recovers its cost for the equipment through a fixed charge on the monthly bill for the bus service provider that is lower than the estimated operational savings of the electric bus. View the model of the instrument here.