The country's first hybrid electric school bus has rolled out in Kelowna on Tuesday in a pilot project the school district says will save money and cut fuel consumption.

The 72-passenger bus is powered by a diesel engine and a battery-powered electric motor. The bus is priced at $240,000 — about $50,000 more than an ordinary diesel bus. But school officials noted the hybrid bus will scale back diesel particulate emissions by up to 90 per cent compared to a regular diesel bus.

"We want to make sure that if we can, find ways to reduce greenhouse gas emissions. Transportation is a huge part of that and we need to do our part in the school system," said Education Minister Shirley Bond.

The hybrid bus will help save money for the schools, said superintendent Mike Roberts of the Central Okanagan School District.

"Having hybrid buses is important for two reasons," he said. "First of all, it's right for the environment — less pollution. Buses put on a lot of miles and the less diesel we use the better. The other thing is it's a real cost saving for the school district. Over the life of the bus there's a significant fuel saving and certainly that helps us meet our bottom line budget."

Middle school student Morgan Marrs said the new bus is a change for the good.

"It's very much like to a normal bus. It's still the same but it is a big change for the environment, so that's good," Marrs said.