How public-private partnerships and innovation are accelerating transit fleet electrification in North America

Public transit agencies in North America are currently navigating a challenging, historic transformation. Mandates related to zero-emission fleets, rising community expectations for cleaner mobility and the urgency of climate action are converging to accelerate electrification plans; yet the road is far from straightforward. Funding shortfalls, technology risks, regulatory challenges and operational uncertainties can leave agencies stuck somewhere between ambition and execution. 

This is where innovation—both technological and financial—steps in. The story of transit electrification is not only about buses and batteries. It’s about rethinking how projects are planned, financed and delivered through creative partnerships and lifecycle strategies that reduce cost, risk and complexity. 

Smarter planning as the foundation

Effective planning remains the cornerstone of successful fleet transformation. Agencies that rely on generic models can often overestimate infrastructure needs, inflating costs and jeopardizing funding opportunities. By working with partners that understand and can meet evolving regulatory requirements such as Build America, Buy America, agencies can ensure expedience in planning and operationalization. A planning stage rooted in real-world route data, battery performance metrics, depot usage patterns and knowledge of the regulatory environment helps produce right-sized projects that are both affordable and bankable. 

The key insight: accurate planning doesn’t just sharpen operations—it also makes a project more attractive to funders and private partners. By demonstrating cost realism and operational feasibility, agencies can unlock both grant funding and private capital more effectively. 

Seeing batteries as assets, not liabilities  

Traditionally, batteries have been treated as depreciating liabilities—expensive components with uncertain lifespans. But this view is changing. Most transit batteries still retain significant capacity when they reach the end of first-life service. Through second-life applications—such as stationary storage for depots, backup and portable power or grid support—batteries gain residual value. 

Factoring this value into financing turns batteries into bankable assets. This perspective underpins innovative models like Battery-as-a-Service (BaaS), where agencies lease batteries under performance contracts rather than purchasing them outright. This gives transit authorities cost certainty and a battery warranty that extends through to the life of the bus (12 years) and beyond the typical industry standard of a six- to eight-year warranty. For the entirety of this longer period, the transit authority gets guaranteed battery performance and a replacement without cost, should the battery degrade to a certain level of charge. 

The operator benefits from consistent and predictable costs, guaranteed performance and freedom from end-of-life disposal burdens while providers repurpose batteries for their second lives. This circular approach helps reduce total cost of ownership and contribute to a more sustainable ecosystem, keeping materials in use longer while avoiding additional emissions from manufacturing new batteries. 

The power of public-private partnerships 

Electrifying fleets at scale typically requires capital beyond what competitive grants can supply. Public-private partnerships (PPPs) have become essential to bridge this funding gap. They combine public sector oversight and policy alignment with private sector financing, technical expertise and risk management. 

A recent example is the collaboration between Zenobē and the city of Brampton, Ontario, announced earlier in 2025. This C$4 billion (US$2.9 billion) initiative demonstrates how PPPs can unlock transformative projects that might otherwise stall at the starting line. Partnerships like these are not just about money; they’re about accelerating timelines, de-risking operations and creating replicable models that can scale across North America. 

Consider alternative financing models 

Transit agencies often face a mismatch between upfront costs and long-term benefits. Service-based models can help close this gap. 

• BaaS: Operators lease batteries, paying based on performance. This shifts the burden of battery health, monitoring and replacement to the provider, delivering reliability and cost predictability. 
• Electric-Vehicle-as-a-Service (EVaaS): A bundled model where vehicles, batteries, charging infrastructure, software and ongoing support are packaged together into one integrated service. This reduces staffing demands and simplifies the transition for agencies without deep technical resources. 

Both models allow transit agencies to stretch limited funding further, reduce risk and accelerate deployment timelines. 

Innovation beyond technology

Transit electrification is often framed as a technical challenge. Yet, the true innovation is in the application of operational data and insights, financing approaches that recognize lifecycle value and partnerships that blend public goals with private expertise to reduce the risk and lower the fleet’s total cost of ownership. 

Transit agencies that embrace these models are reducing their costs while advancing decarbonization goals, delivering cleaner air, quieter streets and a more comfortable rider experience. 

Conclusion

The electrification of transit fleets represents one of the most transformative shifts in public mobility in generations. While challenges remain, innovative strategies are clearing the path forward. For transit leaders, the key takeaways are: 

• Right-size from the start. Use real-world operational data to avoid overbuilding costly infrastructure. 
• Leverage service-based models. Explore BaaS or EVaaS to lower upfront costs and ensure predictable performance. 
• Prioritize partnerships. Public-private collaborations can unlock financing and expertise that agencies cannot access alone. 
• Plan for battery reuse and recycling. Build circularity into procurement and planning to maximize long-term sustainability.

By combining smarter planning, creative financing and collaborative partnerships, agencies can move from ambition to execution—delivering not only electric buses, but a resilient and sustainable transit future.