Electric bus funding: What the 70% subsidy covered until the July 21, 2026 deadline

Dominik Ashkar, CEO HEERO Motors vor HEERO Minibus

Electric bus funding: What the 70% subsidy covered until the July 21, 2026 deadline

07/31/2025

10

Minutes

Max Knirsch

Product Expert

07/31/2025

10

Minutes

Max Knirsch, Product Expert at HEERO Motors

Max Knirsch

Max Knirsch

Product Expert

Did you know that more than 3,500 electric buses have already benefited from government subsidies? The funding call for buses ended on July 21, 2026; up to 70% of the additional costs were subsidized. Nevertheless, you can counter rising diesel prices and strict EU requirements pragmatically.

The topic briefly and concisely

The funding round for electric buses with up to 70% subsidy for vehicles and 40% for charging infrastructure ended on July 21, 2026.

The diesel-to-electric conversion (DTE) saves up to 40% of investment costs compared to purchasing a new vehicle and reduces CO₂ emissions from vehicle manufacturing by 75%.

Due to lower energy and maintenance costs, the Total Cost of Ownership (TCO) of an electric bus over its lifetime is up to 30% lower than that of a diesel bus.

The electrification of your bus fleet is not a question of "if", but of "when" and "how". In light of rising operating costs, the EU's Clean Vehicles Directive, and ambitious climate goals, transport companies and municipalities are facing enormous challenges. Switching to a purely electric bus is the strategically right answer. This article shows you in four clear steps how to classify state funding for vehicles and retrofits: The 2026 funding call for buses ended on July 21, 2026, and a subsequent call has not been announced. We explain the advantages of the retrofitting and how you can use it to not only save CO₂ but also significantly reduce your total cost of ownership (TCO).

Deadline July 21, 2026: What the 70% funding for buses covered

The funding situation has changed for fleet operators. The Federal Ministry for Digital Affairs and Transport (BMDV) has supported the transition to clean drivetrains with a funding directive; the last call for funding for buses ended on July 21, 2026. Under this program, up to 80% of the additional costs for the purchase of a new electric bus or for a DTE conversion were covered. In addition, the installation of the necessary charging infrastructure was subsidized with up to 40% of the investment costs. This funding was a crucial lever to reduce investment costs by more than half and to secure the profitability of your fleet for the next ten years. A subsequent call for funding has not yet been announced; we will clarify which programs are currently open on a case-by-case basis. The next section outlines your specific roadmap for submitting an application.

Your 4-point action plan for cost-effective electrification

To correctly classify the funding, a pragmatic and structured approach is crucial. With over 10 years of experience, we have optimized this process for hundreds of partners. Follow this four-step checklist:


  1. Conduct a needs analysis: Analyze your current routes and schedule plans. Our experts will help you determine the exact energy requirements and select the appropriate vehicle model with up to 400 km of range.

  2. Create a TCO comparison: We calculate your Total Cost of Ownership (TCO). This analysis shows that a modern electric bus is up to 30% cheaper than its diesel counterpart over five years due to lower energy and maintenance costs.

  3. Prepare the funding application: Together, we compile all the necessary documents for the funding application. Our success rate is over 95% for correctly submitted applications.

  4. Submit correctly: The final application must be received by the funding provider as soon as a call is open; the last bus call ended on July 21, 2026. We ensure on-time processing as soon as you start the process with us.

The core of an economical transition often lies not in buying new, but in the intelligent reuse of existing resources.



Renovation instead of new purchase: Circular economy as an efficiency booster

Why scrap a proven vehicle when only the drive system is outdated? The diesel-to-electric conversion (DTE) is at the core of our circular economy philosophy. Instead of buying a completely new vehicle, we convert your existing buses to a state-of-the-art electric drive within just 20 working days. This approach saves a significant share of the CO₂ emissions that would be generated during the production of a new vehicle. A converted HEERO low-entry bus achieves a realistic range of up to 300 km with its 96 kWh net battery capacity – ideal for urban and regional transport. You keep your proven vehicle and reduce investment costs by around 40% compared to a new purchase. These sustainable conversion solutions protect not only your budget, but also valuable resources. But how are the costs structured in the long term?

Total Cost of Ownership (TCO): The true cost comparison

The acquisition costs are only part of the equation. The Total Cost of Ownership (TCO) considers all costs incurred over the entire lifespan of a vehicle of eight to twelve years. An analysis by the ICCT shows that battery-electric trucks can already achieve TCO parity with diesel vehicles today, when subsidies and CO₂ pricing are taken into account. Our calculations for an electric minibus in city traffic confirm this. Here are the decisive factors:


  • Energy costs: Electricity costs per 100 km are around €12–18, while diesel costs are often over €30.

  • Maintenance & repair: An electric motor has up to 80% fewer moving parts than a diesel engine, which reduces maintenance costs by at least 50%.

  • Taxes & duties: Electric buses are exempt from vehicle tax for ten years and benefit from a lower CO₂ toll.

  • Residual value: Due to the longevity of the batteries (over 3,000 charging cycles) and the increasing demand, we project a 15% higher residual value for e-buses after eight years.

These figures prove the long-term profitability, which is further strengthened by legal framework conditions.



Regulatory tailwind: Understanding the Clean Vehicles Directive

With the Clean Vehicles Directive (CVD), implemented by the German Clean Vehicles Procurement Act (SaubFahrzeugBeschG), the EU sets clear targets. Public contracting authorities such as municipalities and public transport companies are obliged to comply with fixed quotas for clean and emission-free vehicles when procuring. By the end of 2025, 45% of all newly procured buses must be "clean", of which half (22.5%) must be completely emission-free. From 2026, these quotas will rise to 65% and 32.5% respectively. By definition, a HEERO electric bus is a zero-emission vehicle and thus fulfills the strictest category of the CVD. Your investment is therefore 100% future-proof and protects you from potential penalty payments in the event of non-compliance with the quotas. The fulfillment of these requirements depends directly on the available vehicle technology.

HEERO technology: performance and range for practical use

Our vehicles are designed for the demanding daily routine of passenger transport. Each model offers an optimized balance of range, charging capacity, and volume. All of our current e-bus models are based on field-tested platforms. Here is an overview of the key figures of our three core models:


  • HEERO Mid-Low Floor Bus: With a battery capacity of 137 kWh (gross) and a DC charging power of up to 165 kW, it is designed for high passenger volumes. It achieves a range of up to 300 km.

  • HEERO Rear-Low Floor Bus: This model uses a 110 kWh battery (96 kWh net) and charges at up to 135 kW. Its range is also up to 300 km, ideal for flexible city routes.

  • HEERO Tourer (Minibus 9 Pax): The maneuverable passenger transporter for up to nine people achieves a range of up to 400 km with its 96 kWh net battery, making it also suitable for longer shuttle services.

In just 30 minutes of charging time, our buses reach 80% of their range again, enabling seamless integration into existing service schedules. This technological superiority is the key to a locally emission-free public transport system.



HEERO Motors. Electric solutions for real-world, high-demand use cases.

HEERO Motors is a brand of Eumova GmbH.

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© 2026 HEERO Motors. All rights reserved.

© 2026 HEERO Motors. All rights reserved.

© 2026 HEERO Motors. All rights reserved.