Maryland’s $11.1M Pilot Program to Provide Incentives for up to 28 EV School Buses, Testing V2G

On February 4, 2026, Potomac Edison, a subsidiary of FirstEnergy Corp., announced it had received approval from the Maryland Public Service Commission to launch a pilot program aimed at helping local school systems transition to zero-emission school buses. The initiative is designed to reduce the cost and complexity of adopting electric buses, providing quieter rides for students, improved air quality for surrounding communities and long-term savings for school districts.

The program supports Maryland’s Climate Solutions Now Act of 2022, which requires public school systems to purchase or contract only zero-emission vehicles. Potomac Edison’s approach addresses one of the biggest barriers to adoption by covering the typical $250,000 cost difference between diesel and electric buses, along with the cost of charging equipment and the electrical upgrades needed for installation.

Jim Myers, FirstEnergy’s President of West Virginia and Maryland, said: “Maryland’s public schools are taking important steps toward cleaner, healthier transportation for students, and this program is designed to help make that transition more practical and affordable. We’re reducing upfront costs and offering hands-on support to help school systems integrate electric buses smoothly. At the same time, we’re exploring how these buses can support grid reliability through innovative technology – a promising opportunity that could benefit customers across the counties we serve.”

The $11.1 million pilot program is scheduled to begin in early 2026 and will run for up to five years or until funds are exhausted. It will support the deployment of up to 28 electric school buses within Potomac Edison’s Maryland service territory and provide full technical and administrative assistance to help school systems plan charging locations, install equipment and train personnel. The program will also include access to vehicle-to-grid technology, allowing Potomac Edison to evaluate how energy stored in bus batteries can be fed back to the grid when vehicles are not in use, potentially strengthening grid reliability during emergencies.

Potomac Edison serves approximately 285,000 customers in all or parts of Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington counties in Maryland. FirstEnergy is committed to integrity, safety, reliability and operational excellence, with electric distribution companies that serve more than six million customers across Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York, and transmission subsidiaries that operate about 24,000 miles of lines connecting the Midwest and Mid-Atlantic regions.

EVinfo.net’s Take: EV School Buses Offer Cost Savings, Cleaner Air

Electric school buses are emerging as one of the most practical and high-impact upgrades communities can make to modernize public transportation. Beyond replacing diesel engines with batteries, they deliver measurable financial savings, public health benefits and climate advantages, while introducing new energy capabilities that traditional buses simply cannot provide.

From a cost perspective, electric school buses save money over their lifetime. While upfront purchase prices are higher, fuel and maintenance costs are dramatically lower. Electricity is cheaper and more stable in price than diesel, and electric drivetrains have far fewer moving parts, reducing maintenance, downtime and repair expenses. When paired with utility incentives, grants or pilot programs, the total cost of ownership for electric buses can already be competitive, and in many cases lower, than diesel alternatives. Over time, those savings free up school district budgets for classrooms instead of fuel tanks.

The health and air quality benefits are immediate and local. Diesel school buses emit nitrogen oxides and particulate matter that are directly linked to asthma and other respiratory illnesses, particularly harmful to children whose lungs are still developing. Electric school buses produce zero tailpipe emissions, meaning cleaner air around schools, neighborhoods and bus depots. Quieter operation also reduces noise pollution, improving the daily experience for students, drivers and nearby residents.

Electric school buses also play a role in addressing human-caused climate change. Transportation is one of the largest sources of greenhouse gas emissions, and diesel school buses are among the most inefficient vehicles on the road. Electrifying school fleets significantly cuts carbon emissions, especially as the electric grid incorporates more renewable energy. Each electric bus represents a long-term reduction in fossil fuel use and helps align local action with broader climate goals.

V2G Offers Emergency Power and Greater Renewable Energy Use

One of the most powerful and often overlooked advantages of electric school buses is vehicle-to-grid (V2G) technology. Because school buses run predictable routes and sit idle for long periods, their large batteries can act as mobile energy storage. During grid outages or emergencies, V2G-enabled buses can provide backup power to schools or critical community facilities. Under normal conditions, they can discharge energy back to the grid during peak demand periods, reducing strain on the system and lowering electricity costs through peak shaving.

V2G also supports higher renewable energy use. Excess solar or wind power generated during off-peak hours can be stored in bus batteries and used later when demand rises. This improves grid efficiency, reduces reliance on fossil-fuel peaker plants and creates new revenue or savings opportunities for school districts participating in managed charging or grid services programs.

Taken together, electric school buses are not just cleaner vehicles, they are financial assets, public health investments and grid resources. They save money over time, protect children’s health, cut climate-warming emissions and strengthen energy resilience. For school districts and communities looking for solutions that deliver both immediate and long-term benefits, electric school buses are a smart and forward-looking choice.