A half-million school buses across US could become an EV battery powerhouse feeding the grid
Zum EV charging station with school buses.
Zum
The nightlife of school buses is about to get more interesting.
Zum, which provides student transportation including EV buses to 4,000 schools across the country, is partnering with the Oakland Unified School District to start selling power stored in EV batteries back to the California utility grid.
Oakland is the first school district in the U.S. to go fully electric with its buses and will now be the first to test the concept of V2G (vehicle to grid) bidirectional charging. In effect, instead of the one-way charge into the vehicle, the school buses will be able to send their battery power back to the grid through Zum charging infrastructure.
Zum estimates that 2.1 gigawatt hours of energy can be sent from batteries back to the California grid annually. The company’s goal is to add 10,000 bidirectional EV school buses across the U.S. with 300 gigawatt hours of energy available to power grids each year. San Francisco Unified and Los Angeles Unified, much larger districts than Oakland, are expected to follow, Zum said. It also works with school districts in California, Colorado, Connecticut, Illinois, Maryland, Massachusetts, Missouri, Nebraska, Pennsylvania, Tennessee, Texas, Washington, Utah, and Virginia.
Zum ranked No. 31 on the 2024 CNBC Disruptor 50 list.
There have been pilots across the country to test school bus V2G business models, but Zum says the time has come to move beyond the test phase.
“We at Zum strongly believe it is time to move beyond pilots and deploy sustainability solutions at scale. Converting the Oakland Unified school bus fleet to 100% electric with VPP [virtual power plant] capability is the right step in that direction,” said Ritu Narayan, founder and CEO of Zum, in a release.
According to Zum, the 27 million students moved across the country to and from schools twice daily is the largest mass transit system in the country. The roughly 500,000 school buses are mostly diesel, contributing to emissions. Zum has the goal of being a net-zero transport provider.
Pacific Gas and Electric, which is based in Oakland, has partnered with Zum to enable its bidirectional charging station for EV buses in Oakland.
Zum EV school buses at a charging station.
Zum
The concept is considered a strong one given the fact that school buses are not in use during peak energy demand hours, for example, between 5 p.m. and 10 p.m. This allows the buses, and their owners, to execute an energy arbitrage trade: charging up for their core daily task of moving students when energy prices are lower, and feeding battery storage back onto the grid when utilities will pay more for it per kilowatt/hour. As owner of the buses in use in Oakland, Zum will be the one to receive revenue from the grid deal, but in other cases where school districts own the buses, they can generate revenue. In some cases, the revenue from power sales could be split.
Ram Ambatipudi, senior vice president of business development at EV Connect, which provides EV charging solutions, said the school bus model is one of the most promising in the area of using EV battery storage in a bidirectional nature. He said one of the biggest challenges is getting utilities to set a predetermined rate schedule that will allow for the arbitrage play across power markets, generating the revenue opportunity for the battery owners.
“There aren’t a lot of established rate schedules,” Ambatipudi said. In addition, a lot has to go right to make the model work and is still being tested. “It’s been more of a pilot level because that interplay has to happen between the vehicle charging station hardware, and software management of the station, and the backfeeding into grid and having the economic benefit paid out by the utility. “Those market developments have yet to come,” he said.
The idea is similar in some ways to how owners of rooftop solar systems have been able to feed power back onto the grid in some markets, but in recent years, there has been pushback against these “net metering” relationships, especially in California. With buses, though, there is one key difference: the buses are not in use during the most important times of the day for the grid to have more power, and the buses can recharge at off-peak demand hours. Many rooftop solar power owners were selling energy supply back onto the grid when it was less needed.
And the arbitrage economics make sense: bus owners charge the vehicles during the lowest-cost periods so they can allocate excess battery power to be sold back into the grid when it is at its highest economic value.
There are many applications to take stored power in EV batteries and use as a supply, such as Ford pitching its F-150 Lightning EV as a home backup power source for when the grid is down and saying that has shown a surprising level of consumer appeal. But the school bus model may be the most effective at the largest scale.
“The low-hanging fruit from what I’ve seen is the school bus model,” Ambatipudi said. It’s not just the cycle of dropping off kids during the morning and then remaining idle at a depot during the middle part of day, and then cycling again in the afternoon and early evening into idle state again. During summer months, the buses are largely idle. “Buses can be used as essentially arbitrage devices to charge when power is cheap and discharge when needed,” he said.
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No matter how badly a fleet wants to electrify their operations and take advantage of reduced fuel costs and TCO, the fact remains that there are substantial up-front obstacles to commercial EV adoption … or are there? We’ve got fleet financing expert Guy O’Brien here to help walk us through it on today’s fiscally responsible episode of Quick Charge!
This conversation was motivated by the recent uncertainty surrounding EVs and EV infrastructure at the Federal level, and how that turmoil is leading some to believe they should wait to electrify. The truth? There’s never been a better time to make the switch!
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Vermont’s EV adoption has surged by an impressive 41% over the past year, with nearly 18,000 EVs now registered statewide.
According to data from Drive Electric Vermont and the Vermont Agency of Natural Resources, 17,939 EVs were registered as of January 2025, increasing by 5,185 vehicles. Notably, over 12% of all new cars registered last year in Vermont had a plug. Additionally, used EVs are gaining popularity, accounting for about 15% of new EV registrations.
To put it in perspective, Vermont took six years to register its first 5,000 EVs – and the last 5,000 were added in just the previous year.
Rapid growth, expanding infrastructure
In just two years, Vermont has doubled its fleet of EVs, underscoring residents’ enthusiasm for electric driving. To support this surge, the state now boasts 459 public EV chargers, including 92 DC fast chargers.
The EV mix in Vermont is leaning increasingly toward BEVs, which represent 60% of the state’s EV fleet. The remaining 40% consists of PHEVs, offering flexible fuel options for drivers.
Top EV models in Vermont
Vermont’s favorite EVs in late 2024 included the Hyundai Ioniq 5, Nissan Ariya, Toyota RAV4 Prime PHEV, Tesla Model Y, and the Ford F-150 Lightning. These vehicles have appealed to Vermont drivers looking for reliability, performance, and practical features that work well in Vermont’s climate.
Leading the US in reducing emissions
This strong adoption of EVs earned Vermont the top ranking from the Natural Resources Defense Council for reducing greenhouse gas emissions in transportation in 2023. “It’s only getting easier for Vermonters to drive electric,” noted Michele Boomhower, Vermont’s Department of Transportation director. She emphasized the growing variety of EV models, including electric trucks and SUVs with essential features like all-wheel drive, crucial for Vermont’s climate and terrain.
Local dealerships boost EV accessibility
Nucar Automall, an auto dealer in St. Albans, is a great example of local support driving this trend. With help from Efficiency Vermont’s EV dealer incentives – receiving $25,000 through the EV Readiness Incentive program – it recently installed 15 EV chargers for new buyers and existing drivers to use.
“Having these chargers on the lot makes it easier for customers to see just how simple charging an EV can be,” said Ryan Ortiz, general manager at Nucar Automall. Ortiz also pointed out the growing affordability of EVs, thanks to more models becoming available and an increase in pre-owned EVs coming off leases.
Read more: Vermont becomes the first US state to pass a law requiring Big Oil to pay for climate damage
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Elon Musk said Tesla’s self-driving will start contributing to the company’s profits… wait for it… “next year” with “millions of Tesla robotaxis in operation during the second half of the year.”
The claim has become a running joke, as he has made it for the last decade.
During Tesla’s conference call following the release of its Q1 2025 financial results, Musk updated shareholders about Tesla’s self-driving plans, which he again presented as critical to the company’s future.
He made a series of claims, mainly updating timelines about Tesla’s self-driving efforts.
Here are the main comments:
- The CEO reiterated that Tesla will launch its paid autonomous ride-sharing service in Austin in June.
- He did clarify that the fleet will consist of Model Y vehicles and not the new Cybercab.
- Musk also confirmed that Tesla is currently training a fleet specifically for Austin.
- As we previously reported, this internal ride-hailing fleet operating in a geo-fenced with teleoperation assist is a big change from Tesla’s approach.
- Musk said “10 to 20 vehicles” on day one.
- Musk said that Tesla’s self-driving will start contributing positively to the company financially in the middle of next year, and “There will be millions of Teslas operating autonomously in the second half of next year.”
- Musk has literally said something similar every year for the past decade and therefore, it’s hard to take him seriously.
- The CEO claimed that Tesla would get “a 90-something percentage market share” in the autonomous market.
- Musk again claimed that no one else is getting close to Tesla’s capacity, and he criticized Waymo for being too expensive.
- Musk is “confident” that the first Model Y will drive itself from the factory to a customer’s home later this year.
- The CEO said that he is confident that Tesla will deliver “unsupervised full self-driving” in consumer vehicles by the end of the year.
Despite Tesla missing earnings expectations by a wide margin, the company’s stock rose 4% in after-hours trading following Musk’s comments, indicating that shareholders still believe Musk’s self-driving predictions, despite his predictions having been incorrect for almost a decade.
Electrek’s Take
The first point I believe will happen. Tesla needs it to happen. It badly needs a win on the self-driving front.
However, as we previously explained, while Tesla will claim a win in June, it will be with a limited geo-fenced and teleoperation-assisted system that won’t scale to customer vehicles, which is what has been promised for years.
Tesla was even asked how it plans to launch this in Austin in June, when FSD in consumer vehicles currently requires frequent interventions from drivers, and Ashok, Tesla’s head of autonomous driving, admitted his team is currently focused on solving the intervention specifically related to driving in Austin.
With training on specific Austin routes and using teleoperations, Tesla can make that happen, but the road between that and unsupervised self-driving in consumer vehicles and “million of Tesla robotaxis” in the second of next year is a long one.
Basically, other than the first point, I believe Tesla will not achieve any of the other on anything close to the timelines announced by Musk today.
I’m willing to take bets on that.
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