LTA Toolkit Financial Calculator
This calculator allows users to compare the additional cost and payback time when buying a low carbon emission bus in place of its conventional diesel equivalent. Shown below are examples of imput information needed and the resulting pay back times achievable on any specific bus purchasing opportunity. Please fill in the appropriate boxes for each Low Carbon Bus and its diesel equivalent you wish to assess.
Diesel-electric hybrid bus example
A double-deck diesel bus might typically cover 45,000 miles p.a. and consume fuel at average of 6 m.p.g. In comparison, an equivalent diesel-electric hybrid Low Carbon Bus (LCB) is expected to cut fuel consumption by 30% (in this case enter 70% into the field that asks for “Expected diesel fuel use (vs. standard diesel)”. If, for example, additional capital costs of the hybrid bus total £80,000 [before VAT] and diesel price is £1.40 per litre (before BSOG rebate but inc VAT) a hybrid LCB could recover the additional costs in 6.28 years.
CNG/Biomethane gas bus example
A single-deck diesel bus might typically cover 40,000 miles p.a. at an average of 8 mpg. In comparison, an equivalent dedicated gas bus may have a CNG consumption rate of 2 miles per kg of gas, and cost £50,000 [before VAT] more to purchase. If, for example, the price of diesel is £1.40 per litre (before BSOG rebate but inc VAT) and the CNG price is £0.9 per kg (inc VAT) then the break even time for the gas bus to recover the additional costs would be 3.3 years.
Electric bus example
A midi sized diesel bus might typically cover 30,000 miles p.a. at an average of 12 mpg and the price of diesel is £1.40 per litre (before BSOG rebate but inc VAT). In comparison, an equivalent battery electric bus may cover the same distance per year, cost £90,000 [before VAT] more to purchase and consumes electricity at a rate of 1.3 miles per kWh. If for example the electricity price is 6.75 pence per kWh (inc VAT) then the break even time for the battery electric bus to recover the additional costs would be 11.2 years.
- Bus Service Operator Grant benefits and reclaiming VAT, are already built into the financial recovery times forecast by the calculator. So fuel costs should be entered at regular bulk/forecourt prices with all duty paid and including VAT.
- The assumptions in the calculator for BSOG are a:20% reduction from 2012/13 (to £0.346 per litre net) and 6p per km extra grant for LCBs. These will be periodically adjusted in the calculator and as government legislation. Significant benefits stem from reduced energy consumption, characteristic of Low Carbon Buses (LCB). The higher the fuel cost (per litre) the faster an operator of an LCB will recover any additional (upfront) capital investment in the vehicle and partially offset the effect of rising fuel prices.
- The cost calculator looks at the indicative speed of payback an operator of an LCB might achieve under different combinations of additional capital cost for an LCB and fuel prices, taking proper account of BSOG and VAT rebates