Bus Electric Insights: Achieve an emissions-free fleet with 80% funding by 2025
Already over 3,500 e-buses are benefitting from government subsidies. The current funding round ends on 31 August 2025 and offers a unique opportunity to sustainably reduce the operating costs of your fleet. Discover your potential.
The topic briefly and concisely
The current BMDV funding round offers up to 80% subsidy for e-buses and conversions, but the application deadline is on 31 August 2025.
The Total Cost of Ownership (TCO) of electric buses is often lower than that of diesel buses due to reduced energy and maintenance costs.
The Diesel-to-Electric conversion (DTE) extends the lifespan of existing vehicles, conserves resources, and is also subsidised by 80%.
Rising diesel prices, strict climate requirements, and bureaucratic hurdles present fleet operators with enormous challenges. The EU's Clean Vehicles Directive further increases the pressure and demands a quota of 45% for clean buses in public tenders by the end of 2025. However, a strategic opportunity presents itself right now: With the current funding guideline from the Federal Ministry for Digital and Transport (BMDV), you can cover up to 80% of the additional costs for the purchase or conversion to electric buses. This guide provides you with the crucial electric bus insights for a pragmatic and economical transition.
Your Electric Bus Strategy 2025: The Key Facts
A successful fleet electrification begins with a solid data foundation. The current framework conditions offer financial incentives that significantly influence your investment decision. The time for strategic planning is now, as the deadline for submitting project drafts is 31 August 2025.
Here are the three crucial factors for your planning:
80% grant for vehicles: The BMDV funding directive subsidises the additional investment costs for battery vehicles and Diesel-to-Electric conversions by up to 80%.
40% funding for charging infrastructure: The government also covers up to 40% of the costs for the establishment of the necessary charging and maintenance infrastructure.
31 August 2025 as the deadline: Project drafts for the current funding round must be submitted by this date to be considered.
45% quota by the CVD: The Clean Vehicles Directive requires a procurement quota of 45% for clean buses in public tenders by the end of 2025.
These key figures form the basis for an economically sensible transition, supported by clear political goals. The next step is a structured plan to apply for these funds.
4 Steps to Funding: Your Practical Roadmap
The path to funding doesn't have to be complicated. A systematic approach helps you meet all requirements on time and maximise the chances of your application’s success. Since 2021, approximately 3,500 buses have been approved. A clearly defined process is key to benefiting from these funds.
Follow this tried-and-tested checklist in four steps:
Conduct a needs analysis: Analyse your current route profiles and schedules to determine the real energy demand. Our experts support you in selecting the appropriate vehicle configuration, such as a Heero low-floor rear bus with up to 300 km range.
Calculate Total Cost of Ownership (TCO): Compare the total operating costs. A TCO analysis often shows that e-buses are cheaper over their 10-year lifespan than diesel equivalents.
Prepare the funding application: Gather all necessary documents and create a detailed project outline. The submission is made via the federal government's easy-online portal.
Plan the implementation: Plan the necessary charging infrastructure and integration of the new vehicles into the operational process simultaneously with the application.
With this structured approach, you turn regulatory pressure into a strategic advantage. A crucial component in this is understanding the financial incentives.
Make optimal use of funding: Cover up to 80% of costs
The "Guideline for the Promotion of Alternative Drives for Buses in Public Transport" is the central instrument for decarbonising public transport. It aims to bridge the cost gap between diesel and electric buses. The funding explicitly covers new vehicles and innovative retrofit solutions.
The funding rate of 80% refers to the difference in cost compared to a comparable Euro VI diesel bus. In the case of a Diesel-to-Electric retrofit (DTE), even 80% of the total conversion costs are funded. This makes the modernisation of existing fleets particularly attractive and conserves valuable resources. The assessment of applications is competitive and considers criteria such as CO₂ avoidance per funding euro. A well-thought-out concept is therefore crucial for success. The analysis of total costs shows why this investment pays off in the long term.
Analyse of Cost Efficiency: TCO as a Basis for Decision-Making
The higher purchasing price of an electric bus is often perceived as an obstacle. However, a sole focus on the purchase price is too limited. What matters are the Total Cost of Ownership (TCO), i.e., the total operating costs over the entire lifetime of the vehicle. Studies show that maintenance costs for e-buses can be up to 40% lower.
TCO calculation includes all relevant cost points:
Acquisition: Considers the purchase price minus the 80% subsidy.
Energy: Electricity costs are generally lower and more stable than diesel prices, which means significant savings over 10 years.
Maintenance: Fewer moving parts in the e-drive train lead to less wear and reduced service costs.
Infrastructure: The proportional costs for the charging infrastructure, subsidised by 40%, are also included.
A detailed TCO analysis proves that electrification is not only an ecological but also an economic gain. This is especially true for the sustainable technology of retrofitting.
Technology that convinces: Combining range and sustainability
Modern electric buses are perfectly equipped to meet the demands of daily operations. For example, the HEERO Tourer minibus can achieve up to 400 km on a single charge. This is made possible by efficient drive systems and optimised battery systems. Our medium-low-floor bus uses a 137 kWh battery and charges up to 165 kW to 80% in around 30 minutes.
A special focus is on the circular economy. The Diesel-to-Electric conversion (DTE) is a prime example of this. Instead of scrapping a fully functional bus, its lifecycle is extended by replacing the drivetrain. This approach saves up to 80% of the CO₂ emissions that would occur during the production of a new vehicle. You retain your reliable vehicle and make it fit for an emission-free future. This technological maturity requires an equally well-thought-out charging infrastructure.
Intelligently plan charging infrastructure: secure a 40% subsidy
A powerful charging infrastructure is the backbone of every e-bus fleet. The planning should take into account the depot layout, grid connection capacity, and the specific circulation plans of the vehicles. The BMDV guideline supports you here with a funding rate of 40% for the necessary infrastructure.
Whether depot charging overnight or opportunity charging at terminus stops – the right strategy depends on your operational concept. Heero vehicles like the low-floor rear bus support DC fast charging up to 135 kW. This enables high flexibility in operation. Early planning not only secures funding but also ensures a smooth transition and maximum vehicle availability from day one. Start your transformation now.
More useful links
Federal Ministry for Digital and Transport (BMDV) provides a press release on the funding call for buses.
Federal Ministry for Economic Affairs and Climate Action offers a newsletter announcement on the topic of the energy transition.
Project Management Jülich (PtJ) provides information on the funding for the procurement of buses.
Federal Environment Agency publishes a report on the analysis of the environmental balance of motor vehicles.
Association of German Transport Companies (VDV) offers information on the e-bus project.
FAQ
Who is eligible for the BMDV funding?
Transport companies are primarily eligible to apply, but other stakeholders in the bus sector operating in Germany and wishing to convert their fleets to eco-friendly drives can also apply.
How long does a Diesel-to-Electric conversion take?
A DTE conversion is a standardised process that typically takes only a few weeks. This is significantly faster than the delivery times for many new electric buses, which can often be 12 months or longer.
What should be considered when planning the charging infrastructure?
Important factors include the available grid connection capacity at the depot, the number of vehicles to be charged simultaneously, the charging power (e.g., 135 kW DC), and integration into operational management. A careful analysis in advance is crucial.
How is the Total Cost of Ownership (TCO) calculated?
The TCO includes all costs over the vehicle's lifetime: acquisition (less funding), energy (electricity vs. diesel), maintenance and repairs, insurance, personnel, and proportional infrastructure costs. It provides a more comprehensive basis for decision-making than the mere purchase price.
Which battery technology is used in Heero vehicles?
Heero relies on modern lithium iron phosphate batteries (LFP), known for their durability and safety. The net capacity is 96 kWh or 115 kWh, depending on the model, ensuring high range and efficiency.
What happens if I miss the deadline on August 31, 2025?
Currently, the submission deadline for project outlines in this funding cycle ends on August 31, 2025. Whether and when a new funding round will be announced is currently unclear. Therefore, it is advisable to take advantage of the current opportunity.
