Octillion Power Systems debuts new EV battery-leasing plan

Octillion Power Systems, a Tier 1 supplier of EV energy storage systems, has announced a new demonstrator battery-leasing program for fleet customers. Under the program, participating fleet operators will be allowed to source batteries through a five-year lease-to-own program, with no up-front payment.

The goal of the demonstration program is to collect data on battery degradation, evaluate fleet operation usage models, and assess the viability of second-life applications for used batteries. Octillion hopes to use the data to build market cases for traditional financing groups that are eager to get into battery leasing but need more information about the technology.

Leasing is seen as a critical leverage tool to drive the adoption of commercial EVs by allowing fleet operators to enjoy the total cost of ownership benefits of EVs without having to shoulder high up-front costs.

“This innovative leasing plan makes it easier for fleets to go green and save money right away,” said Octillion President Paul Beach. “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. With leasing, the up-front cost of the battery is significantly reduced, making the vehicle, in most cases, less expensive than ICE vehicles.”

Octillion points out that fleets are ideally suited for electrification, because they can accommodate a “right-sized” battery that optimizes range with cost and weight. Many fleets have regional and local routes of no more than 100-150 miles, which allows for efficiently priced and sized batteries customized to serve these routes.

Once the demonstrator program transitions to a normalized leasing program of six to seven years, the fleet operator will be able to swap out the used battery for a new one, and the lessor will then repurpose the used battery for a second life in a grid support application.

“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 said. “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.”

Source: Octillion Power Systems