(NewsNation) — Electric buses are quieter, better for the environment and can ultimately save school districts money over time, but the upfront costs to make the switch can be daunting.

Federal funding aimed at easing the transition for districts has made electric school buses more attractive, but they still only make up 1% of all school buses in the U.S.

Proponents argue school districts must think long-term when making decisions about bus purchases and charging infrastructure.

But even with government subsidies, getting over the first financial hurdle of buying the buses and the charging stations could hold some schools back.

Those upfront costs for electric buses can be expensive.

They vary by factors like size and battery type, but costs average about $400,000 per bus. That’s more expensive than some diesel alternatives, but battery production costs are expected to decline as the market matures, according to the U.S. Department of Energy. 

The costs had been declining, however. About 10 years ago, most electric buses cost more than $1.2 million.

The cost of charging stations can be steep too, ranging from about $600 to $140,000 per port depending on whether districts opt for a slower, more affordable charger or a more complex and expensive high-speed charger.

Federal funding through the EPA’s Clean School Bus Rebate Program has made things more attainable for some districts. So far, $900 million has been made available to introduce 2,400 electric school buses across 389 school districts.

Like other transportation upgrades, switching to electric buses stands to worsen or improve discrepancies that already exist. Communities of color and low-income communities are often the last to reap the benefits from transportation upgrades and developments, the World Resources Institute (WRI) noted.

The EPA has tried to get ahead of those equity issues by prioritizing rural and tribal communities and those with high poverty rates. The amount of electric school buses in communities with the highest share of low-income households has surged, now representing 41% of electric school buses, according to the WRI.

The rebate period is currently closed, but the EPA will accept grant applications through Tuesday. Awards are expected to go out in February.

With federal funding options, some school districts see electric buses as a decision that will save them money in the long run.

Hardin County Community Unit School District in rural southern Illinois is one of those districts. About 95% of its students are transported by bus.

“At the time (we applied for the grant), our budget — 10% or 11% — went to busing, and I was looking at ways to reduce that cost,” Superintendent Andy Edmondson told NewsNation.

Hardin County CUSD has 12 committed electric school buses, which it was able to purchase, in part, through an EPA grant. Another 17 buses in the district will remain gas-powered for now.

“EPA funding, combined with Highland (Electric Fleets’) financing and services, helps us avoid the usual cost and complexity of electrification,” Edmondson said in an official statement late last year.

Ultimately, the district expects to save between $100,000 to $120,000 each year once its buses arrive this winter.

Nationwide, those potential savings are driving electric school buses’ popularity despite the current small market size.

At least one district in each of the nation’s 50 states has made a commitment to making the switch, according to the WRI. Four tribal nations also have made commitments.

In December, 1,398 electric school buses were ordered, delivered or operating within the U.S., and funding for another 5,500 electric buses has been committed.

Those numbers are expected to climb as schools slowly integrate the new busing alternative, Phillip Burgoyne-Allen, an associate with the Electric School Bus Initiative in the Ross Center for Sustainable Cities, tells NewsNation.

“Even if a school district right now is only adopting five electric school buses that they (received) funding for … maybe they have a goal to electrify 50% (or) 100% of their fleet,” he said.

Long-term, choosing electricity over diesel pays for itself, Burgoyne-Allen said.

“Electric school buses are cheaper to fuel because electricity costs less than diesel and other fuel types as well,” Burgoyne-Allen said. “School districts have seen a lot of fluctuation in the prices that they’re paying for diesel. Whereas electricity is much more likely to stay at a more consistent rate.”