The 5/10/5/80 Model Explained: How School Fuel Savings Fund the Clean Energy Transition

Every SPARC+CM electric bus replaces a fuel bill that, at current Lagos prices, runs to over ₦1,400,000 a year. What happens to that saving is the mechanism that makes the whole programme self-financing, and it is deliberately split four ways.

Five percent goes directly to parents, as a reduction in school bus fees from the very first term of electric operation. Ten percent becomes institutional profit for the school operator: a commercial return for participating, with zero capital outlay. Five percent covers programme expenses: monitoring, carbon credit verification, and reporting.

The remaining eighty percent flows into the programme's financial pool. That pool does two jobs at once. It repays the concessional capital that funded the bus and solar installation in the first place, and it seeds the next school's deployment. No further subsidy cheque is required once the cycle is running.

It is a model built for scale rather than for a single showcase site: every bus that pays down its own capital cost also part-funds the bus after it.