Making municipal fleets future-proof: Contributing to air pollution control with 80% funding
Your municipality faces the challenge of making the vehicle fleet more sustainable while keeping costs under control. Time is running out, as high funding for the conversion of service vehicles will soon expire. Discover how a pragmatic approach can not only improve air quality but also act more economically 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 crucial funding deadline for an 80% subsidy for retrofitting and 40% for charging infrastructure ends on August 31, 2025.
Contributing to air quality management as a municipality through retrofitting service vehicles is no longer an option but a necessity. In light of rising diesel prices, stricter environmental regulations due to 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: Retrofitting existing diesel vehicles to electric drive is not only sustainable but also extremely economically attractive thanks to a recent funding guideline from the Federal Ministry for Digital and Transport (BMDV). However, time is running out: The deadline for the 80% funding application is August 31, 2025. This guide shows you how to strategically plan the transition and secure the maximum funding.
The regulatory framework: Why action must be taken now
The legal requirements for municipal fleets have clearly tightened. The law on the procurement of clean road vehicles (SaubFahrzeugBeschG), the German implementation of the European Clean Vehicles Directive, has mandated minimum quotas for low-emission and zero-emission vehicles in public procurement since August 2021. For light commercial vehicles, the quota is 38.5 percent, for trucks it is 10 percent, and for buses, it is even 45 percent. These quotas will continue to increase from 2026.
These requirements are directly aimed at improving air quality in urban areas, where nitrogen dioxide pollution often exceeds the recommendations of the World Health Organization (WHO). The retrofit of existing vehicles, also known as Diesel-to-Electric retrofit (DTE), is explicitly recognized as a compliance option. This means you do not have to replace your tried-and-true specialty vehicles but can make them future-proof and thus contribute directly to a Smart City. However, the crucial deadline for accessing the highest funding rates of 80 percent ends on August 31, 2025.
Focusing on Economic Efficiency: Optimizing Total Cost of Ownership (TCO)
The decision for electromobility is not only ecological but also economical. This is where Total Cost of Ownership (TCO) comes into play – a metric that considers all costs incurred over the entire lifespan 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 in the near future.
This advantage is particularly evident during the conversion, as the expensive special modifications of your vehicles remain in place. A diesel-to-electric conversion (DTE) is the process in which the combustion engine and tank of an existing vehicle are replaced by an electric motor and a battery system. This not only saves 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 construction yard and a prime example of the resource conservation required by the Circular Economy Act.
Your 4-point action plan for timely promotion
The path to upgrading and retrofitting your fleet is straightforward with the right preparation. Act now to not miss the deadline on August 31, 2025. Here is your checklist for success:
Analyze vehicle inventory: Identify the diesel vehicles in your fleet that are suitable for retrofitting. Especially Mercedes-Benz Sprinter with costly fittings offer enormous potential.
Check funding opportunities: Ensure that your municipality is eligible to apply. The current funding guidelines from the BMDV support municipal operations with a rate of 80 percent for vehicle retrofitting and 40 percent for charging infrastructure.
Calculate economic viability: Conduct a TCO analysis to quantify the long-term cost advantage of retrofitting compared to purchasing new vehicles or continuing operation with diesel. Take into account the savings on energy, maintenance, and taxes.
Submit application on time: Gather all necessary documents and submit your funding application well in advance of the deadline on August 31, 2025. Early planning secures funding for a sustainable fleet modernization.
This structured process ensures that you can take full advantage of the current funding for e-transporters.
Practical technology: Range and performance for municipal use
The concerns about the practicality of electric commercial vehicles are largely unfounded. Modern retrofitted vehicles offer ranges and charging power that more than meet the demands of everyday municipal use. For example, an HEERO DTE Sprinter achieves a range of up to 425 kilometers. For the transport of people in school or community bus services, the HEERO Tourer offers a range of up to 400 kilometers.
The technical data is tailored to the needs of public enterprises:
High ranges: The HEERO eTransporter reaches up to 500 kilometers, municipal flatbed trucks up to 400 kilometers.
Powerful batteries: By default, a battery with 110 kWh gross and 96 kWh net capacity is used, ensuring reliable power supply.
Fast charging: With DC charging power of up to 135 kW (standard) or even 165 kW (medium-floor bus), the vehicles are ready for use again quickly. Charging to 80 percent often only takes about 30 minutes.
Specialized solutions: Even for public transport, there are suitable offers with the medium-floor bus (up to 300 km range) and the low-floor bus (up to 300 km range).
These performance data guarantee that your retrofitted service vehicles fulfill their tasks without compromise. The conversion thus ensures not only the compliance with environmental zones but also the full operational efficiency of your fleet.
Construction of charging infrastructure: With 40 percent funding for your own charging network
A successful fleet electrification depends on a reliable charging infrastructure. The National Control Center for Charging Infrastructure coordinates the nationwide expansion in Germany to support the market ramp-up of electric commercial vehicles. For municipalities, the establishment of non-public charging points on their own premises is the most efficient solution. Here, vehicles can be charged overnight or during downtime.
The good news is that you won't be left alone in this matter. The current funding guideline provides a funding rate of 40 percent for the establishment of the necessary charging infrastructure. This significantly reduces investment costs and accelerates amortization. Planning should take future needs into account and be scalable to keep up with a growing electric fleet. A well-thought-out charging infrastructure is key to fully exploiting the benefits of electric mobility and making the most of your retrofitted vans for zero-emission zones.
Circular economy in practice: A contribution far beyond air quality improvement
By choosing a diesel-to-electric conversion, you are not only contributing to air quality improvement but also acting in accordance with the Circular Economy Act (KrWG). This law mandates the conservation of natural resources and prioritizes reuse and recycling over mere disposal. Converting a vehicle is the highest form of reuse: the vehicle frame, chassis, and especially the expensive specialized equipment are reused.
This approach avoids the production of a completely new vehicle and thereby saves thousands of tons of CO₂ and raw materials. You reduce waste and extend the lifecycle of your investments. This positions your municipality as a pioneer in sustainability and responsible management. The decision for a DTE solution sends a strong signal that goes far beyond mere compliance with emission limit values and creates real added value for the environment and society.
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More useful links
Environment Agency provides information on emissions from transport.
ADAC provides information on the topic of electromobility.
Fraunhofer ISI presents research topics in the field of mobility and transport.
FAQ
Which vehicles can be retrofitted?
In principle, many light commercial vehicles are suitable for a diesel-to-electric conversion. Heero has specialized in the electrification of Mercedes-Benz Sprinter models, as these provide a very good basis for durable and high-performance e-commercial vehicles, especially those with special bodies.
What does Total Cost of Ownership (TCO) mean?
The Total Cost of Ownership (TCO) includes all costs incurred during the entire service life of a vehicle. This includes not only the purchase price but also ongoing costs for energy (electricity/diesel), maintenance, repairs, insurance, taxes, and depreciation. E-vehicles often have a cheaper TCO than diesel.
How long does a diesel-to-electric conversion take?
The conversion process of a vehicle is technologically standardized and can be completed within a few weeks. However, early planning including subsidy applications is important to ensure a smooth process.
Does a retrofitted vehicle count towards meeting procurement quotas?
Yes, the Clean Vehicles Procurement Act (SaubFahrzeugBeschG) explicitly recognizes retrofitted vehicles as 'clean vehicles'. They can therefore be fully credited towards meeting the statutory minimum quotas.
What charging capacity is needed for municipal commercial vehicles?
AC charging stations (up to 22 kW) are suitable for overnight charging at the depot. For fast interim charging during the working day, DC fast charging stations with 50 kW or more are ideal. Heero vehicles support DC charging with up to 165 kW, minimizing downtime.
What happens if the funding deadline on August 31, 2025, is missed?
After August 31, 2025, the availability of the current very high subsidy programs with an 80% grant is no longer guaranteed. Whether there will be new programs and how high their funding rates will be is uncertain. Therefore, quick action is essential to secure the current conditions.
