Octillion Power Systems, provider of advanced lithium-ion storage systems for electric mobility, announced a new demonstrator program for battery leasing. The program allows fleet customers to lease batteries when they purchase vehicles.
Under the program, participating fleet operators can source batteries through a five-year “lease-to-own” program, with no up-front payment. Access to the program will be on a first-come, first-served basis.
“The program is designed to ensure that fleets feel prepared to make the switch from vehicles powered by internal combustion engines to electric vehicles,” says Paul Beach, president, Octillion Power Systems. “This innovative leasing plan makes it easier for fleets to go green and save money right away.”
The program’s goal is to collect data on battery degradation, evaluate fleet-operation-use models, and assess second-life viability of used batteries. This allows Octillion to build cases for financing groups eager to get into battery leasing but concerned by the technology. Leasing is a critical leverage tool to drive the adoption of electric commercial vehicles. Leasing allows fleets to realize the benefits associated with operating electric vehicles versus those powered by internal combustion engines (ICE).
ADDRESSING CONCERNS
A 2019 survey asked customers looking for a new vehicle why they would hesitate to purchase an electric vehicle (EV). The top responses included anxiety surrounding range per charge, the higher price, lack of charging infrastructure, and recycling and disposal. These four supposed drawbacks have inspired Octillion to roll out its battery leasing program for the convenience of fleets.
“Leasing batteries to fleet operators addresses many of the underlying issues associated with the adoption of EVs, including higher upfront vehicle costs, range anxiety, the expense of charging infrastructure, and end of life recycling,” Beach says.
Leasing significantly reduces the upfront cost of the battery, and Beach says this makes EVs less expensive than ICE vehicles in most cases.
Building the cost of the lease into the budget helps to defer expense and allow for lower fleet operating costs. Additionally, electrification ideally suits fleets. This is because they can accommodate a “right-sized” battery that optimizes range with cost and weight, addressing range anxiety. Regional and local routes typical of many fleets are 100-150 miles in range. This allows for efficiently priced and sized batteries customized to meet these routes. Roundtrip routes can also use localized charging at a centralized depot, allowing fleets to share charging infrastructure. Once the program transitions to leasing of 6-7 years, the fleet can swap the used battery for a new one. The lessor will then repurpose the battery for second life in the grid.
BEGIN YOUR ELECTRIC JOURNEY
As a leading global provider of custom lithium-ion batteries, Octillion is in a position to tackle the issues people have when considering an EV purchase. Octillion also engineers and manufactures custom batteries tailored to the specific needs of the fleet operator, ensuring that they begin saving money from the very first mile of operation.
“With a standard EV purchase at full price, it can take months or even years to see a return on investment, depending on how frequently the vehicle is used,” Beach says. “But with our leasing service, this wait time drops to zero. The lease will be almost identical to a power purchase agreement, which are currently used to lease solar energy sources to households and buildings.”
“Our program makes it easier for you to electrify your fleet,” Beach continues. “We’re looking for fleets willing to embark on this money-saving and environmentally friendly opportunity.”
Find out more, visit www.octillion.us.
