Making municipal fleets future-proof: Contributing to air pollution control with retrofitting and funding expertise
Making municipal fleets future-proof: Contributing to air pollution control with retrofitting and funding expertise
Your municipality is facing the challenge of making its vehicle fleet more sustainable while keeping costs under control. The high federal subsidies for retrofitting commercial vehicles have since expired. Learn how a pragmatic approach can not only improve air quality but also make your operations more economical in the long term.
The topic briefly and concisely
Municipalities must meet fixed quotas for clean vehicles by 2025 due to the Clean Vehicles Directive (CVD) and the German Clean Vehicles Act (SaubFahrzeugBeschG).
A diesel-to-electric conversion (DTE) is an recognized fulfillment option that preserves existing special structures and conserves resources.
The KsNI directive funded conversions until 2024 with up to 80% of the additional costs and has been discontinued since August 2024.
For municipalities, contributing to air pollution control by converting service vehicles is no longer an option, but a necessity. Given rising diesel prices, stricter environmental regulations under the EU's Clean Vehicles Directive (CVD), and high nitrogen dioxide levels in many cities, municipal fleets are under pressure to act. The good news: converting existing diesel vehicles to electric drives is not only sustainable, but was also economically attractive thanks to the funding guidelines of the Federal Ministry for Digital and Transport (BMDV). As of today: the KsNI funding covered up to 80 percent of the additional costs, ran until 2024, and no new funding calls are planned. This guide shows you how to strategically plan the transition and which funding options may apply in individual cases.
The regulatory framework: Why action must be taken now
The legal requirements for municipal vehicle fleets have become significantly more stringent. The Act on the Procurement of Clean Road Vehicles (SaubFahrzeugBeschG), the German implementation of the European Clean Vehicles Directive, has prescribed binding minimum quotas for low- and zero-emission vehicles in public tenders since August 2021. For light commercial vehicles, the quota is 38.5 percent, for trucks 10 percent, and for buses even 45 percent. From 2026, these quotas will increase further.
These requirements aim directly at improving air quality in urban areas, where nitrogen dioxide pollution is often still above the recommendations of the World Health Organization (WHO). The conversion of existing vehicles, also known as diesel-to-electric conversion (DTE), is explicitly recognized as a fulfillment option. This means you do not have to replace your proven special-purpose vehicles, but can make them future-proof and thus make a direct contribution to a Smart City. The highest funding rates of 80 percent of the additional costs came from the federal KsNI funding; this ran until 2024, and new funding calls are not planned.
Focusing on Economic Efficiency: Optimizing Total Cost of Ownership (TCO)
The decision in favor of electromobility is not only an ecological one, but also an economic one. This is where the Total Cost of Ownership (TCO) comes into play – a key figure that takes into account all costs incurred over the entire service life of a vehicle. These include acquisition, maintenance, insurance, taxes, and energy costs. Studies show that battery-electric commercial vehicles already have a cost advantage over diesel vehicles today or will have in the near future.
This advantage becomes particularly clear during retrofitting, as the expensive special bodies of your vehicles are preserved. A conversion is the process in which the combustion engine and fuel tank of an existing vehicle are replaced by an electric motor and a battery system. This not only protects your budget, but also valuable resources. Instead of scrapping a fully functional vehicle, it is modernized – a clear commitment to the emission-free future of your municipal depot and a prime example of the resource conservation required by the Closed Substance Cycle Waste Management Act.
Your 4-point action plan for the funding review
The path to funding and converting your fleet is straightforward with the right preparation. The federal KsNI funding ran until 2024; new funding calls are not planned. Here is your checklist for success:
Analyze vehicle fleet: Identify the diesel vehicles in your fleet that are suitable for conversion. Particularly Mercedes-Benz Sprinters with cost-intensive bodies offer enormous potential.
Check funding opportunities: Clarify whether your municipality is eligible to apply for ongoing programs. The BMDV's KsNI funding guideline supported municipal enterprises with up to 80 percent for vehicle conversion and 40 percent for charging infrastructure.
Calculate cost-effectiveness: Conduct a TCO analysis to quantify the long-term cost advantage of conversion compared to a new purchase or continued operation with diesel. Take into account the savings in energy, maintenance, and taxes.
Prepare application: Gather all necessary documents so that your project is ready for immediate application in a suitable program. Early planning remains the foundation for a sustainable fleet modernization.
This structured process ensures that you can clearly classify the Förderung für E-Transporter for your case.
Practical technology: Range and performance for municipal use
Concerns regarding the practicality of electric commercial vehicles are largely unfounded. Modern converted vehicles offer ranges and charging capacities that more than meet the demands of everyday municipal operations. A HEERO DTE Sprinter, for example, achieves a range of up to 425 kilometers. For transporting passengers in school or community bus operations, the HEERO Tourer offers a range of up to 400 kilometers.
The technical specifications are tailored to the needs of public enterprises:
High ranges: The HEERO eTransporter manages up to 500 kilometers, municipal flatbed trucks up to 400 kilometers.
Powerful batteries: A battery with 110 kWh gross or 96 kWh net capacity is used as standard, ensuring a reliable energy supply.
Fast charging: With a DC charging capacity of up to 135 kW (standard) or even 165 kW (medium low-floor bus), the vehicles are quickly ready for use again. Charging to 80 percent often takes only about 30 minutes.
Specialized solutions: Even for public transport, suitable options are available with the medium low-floor bus (up to 300 km range) and the rear low-floor bus (up to 300 km range).
This performance data guarantees that your converted service vehicles will perform their tasks without compromise. The transition thus secures not only compliance with low-emission zones, but also the full operational capability of your fleet.
Setting up the charging infrastructure: What the federal government recently funded
A successful fleet electrification stands and falls with a reliable charging infrastructure. The National Centre for Charging Infrastructure coordinates the nationwide expansion to support the market ramp-up of electric commercial vehicles. For municipalities, setting up non-public charging points in their own depot is the most efficient solution. Here, vehicles can be charged overnight or during downtime.
Here, too, it is worth looking at the funding situation. The charging infrastructure was part of the federal funding guidelines, which ran until 2024; new funding calls are not planned. Which subsidies are currently possible will be clarified on a case-by-case basis based on your location and your expansion stage. Planning should take future demand into account and be scalable to keep pace with a growing electric fleet. A well-thought-out charging infrastructure is the key to fully exploiting the advantages of electromobility and making optimal use of your converted transporters for zero-emission zones.
Circular economy in practice: A contribution far beyond air quality improvement
By choosing a conversion, you are not only contributing to clean air but also acting in accordance with the German Circular Economy Act (KrWG). This law demands the conservation of natural resources and prioritizes reuse and recycling over simple disposal. Converting a vehicle is the highest form of reuse: the vehicle frame, the chassis, and above all, the expensive specialized body continue to be used.
This approach avoids the production of an entirely new vehicle and thus saves thousands of tons of CO₂ and raw materials. You reduce waste and extend the life cycle of your investments. In doing so, you position your municipality as a pioneer in sustainability and responsible management. Deciding on a conversion solution is therefore a strong signal that goes far beyond compliance with emission limits and creates real added value for the environment and society.
Start your funding analysis: Answer three questions and receive your grant roadmap, including classification of the KsNI funding, which covered up to 80% of the additional costs until 2024.
To the free analysis
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More useful links
Umweltbundesamt offers information on transport emissions.
ADAC provides information on the topic of electromobility.
Fraunhofer ISI presents research topics in the field of mobility and transport.
