Municipal vehicles

Your path to electric utility vehicles: Transition the fleet with 80% funding until August 31, 2025.

09.02.2025

Minutes

Federico De Ponte

Experte für Beratung bei Auctoa

06/02/2025

10

Minutes

Patrick Zenker

Sustainability enthusiast

Already 3,500 e-buses are securing an 80% subsidy – when will you electrify your fleet? In light of rising diesel prices, stricter climate regulations, and an attractive but limited funding period, pragmatic action is needed now.

The topic briefly and concisely

The BMDV offers up to 80% funding for electric commercial vehicles and their conversion, but applications must be submitted by August 31, 2025.

The retrofitting of existing diesel vehicles (Diesel-to-Electric) protects investments in specialized structures and is a central component of the circular economy.

A Total Cost of Ownership (TCO) analysis often shows that electric utility vehicles are more economical in the long run than diesel vehicles due to lower operating and maintenance costs.

The electrification of commercial vehicle fleets is no longer an option for municipalities and businesses, but a strategic necessity. Rising operating costs, the requirements of the EU's Clean Vehicles Directive, and the increasing pressure for CO₂ reduction demand a clear response. However, many decision-makers hesitate due to the high initial investments and the bureaucratic effort. But a current funding program from the Federal Ministry for Digital and Transport (BMDV) fundamentally changes the calculations: With up to 80% subsidy on the purchase or retrofitting to electric commercial vehicles and a clear deadline of August 31, 2025, the transition becomes more economical than ever before. This article serves as your pragmatic guide to seize this opportunity in a timely manner.

Time is of the essence: Why you should switch to an electric utility vehicle now.

The pressure to act for fleet operators is increasing from three directions: economically due to volatile fuel prices, regulatorily through the EU, and technologically through the availability of practical solutions. The current funding backdrop offers a unique opportunity to make this shift profitable. You need to know the key points to make quick decisions.

Here are the facts you need for your planning:

  • 80% grant: The BMDV funds the additional costs when acquiring a new electric commercial vehicle or when converting a diesel to electric by up to eighty percent.

  • 40% grant: The necessary non-public charging infrastructure for operation is subsidized by up to forty percent of the costs.

  • August 31, 2025: This is the crucial deadline for submitting project outlines in the current funding call.

  • Clean Vehicles Directive: From January 1, 2026, the legal quota for

Your 4-point plan for timely promotion

Bureaucracy and complex application procedures should not be a hindrance when the opportunity is so great. With a structured approach, you ensure that you meet the deadline for funding your electric commercial vehicle. We have broken down the process into four clear, actionable steps for you.

Follow this checklist for your successful application:

  1. Conduct needs analysis: Precisely analyze your daily driving performance, typical route profiles, and the required payload. This data forms the basis for selecting the right vehicle and battery technology.

  2. Check profitability: Conduct a total cost analysis. The Total Cost of Ownership (TCO) compares all incurred costs over the entire lifecycle - from acquisition through energy and maintenance to residual value.

  3. Select suitable solution: Decide between a new vehicle like the Heero eTransporter with a range of up to 500 km or a Diesel-to-Electric conversion (DTE). A DTE conversion is the transformation of an existing diesel vehicle into a pure electric vehicle, which is particularly useful for expensive special bodies.

  4. Prepare and submit the funding application: Create a meaningful project outline that clearly demonstrates the need, the solution, and the profitability. Be sure to note the submission deadline on August 31, 2025.

A detailed calculation of your Total Cost of Ownership often reveals the financial benefits after a short period of time.

Make optimal use of funding pots: This is how you secure 80% grants

The current funding program of the BMDV, based on the "Guideline for the Promotion of Alternative Drives for Buses in Passenger Transport", is the largest lever for decarbonizing your fleet. It aims to accelerate market launch and significantly reduce investment barriers for companies and municipalities. The funding is intentionally broad to support various pathways to electrification.

80 percent of the additional investment costs compared to a reference vehicle with diesel drive are funded. This explicitly applies to the purchase of new vehicles and the conversion of existing vehicles. This directly supports the circular economy. In addition, 40 percent of the costs for the establishment and connection of charging infrastructure are covered, provided that this is necessary for the operation of the funded vehicles. The application requires a detailed project outline, which must be submitted by August 31, 2025. The analysis of profitability is a core component that demonstrates the long-term savings.

TCO analysis: When an electric commercial vehicle is worthwhile

The higher acquisition costs for an electric commercial vehicle are only part of the equation. A complete TCO analysis (Total Cost of Ownership) shows that operating costs over the lifetime are usually significantly lower than with a diesel. Studies show that the additional investment often pays off after four to six years.

Here is a direct cost comparison of the most important factors:

  • Acquisition: The costs for electric vehicles are higher, but are significantly reduced by the 80% grant.

  • Energy costs: Electricity is more price-stable compared to diesel and cheaper per kilometer. Savings of over 50% are realistic here.

  • Maintenance & Repair: An electric motor has up to 70% fewer moving parts than a combustion engine, which reduces maintenance efforts and downtime.

  • Taxes & Fees: Electric vehicles benefit from the vehicle tax exemption, while CO₂ pricing further increases costs for diesel.

Especially in urban stop-and-go traffic, electric vehicles fully exploit their efficiency advantages. Therefore, the next logical step is to consider the suitable technology for your specific application.

Renovation instead of new purchase: The advantages of diesel-to-electric conversion

Why scrap a proven vehicle just because the drive is no longer up-to-date? The Diesel-to-Electric conversion (DTE) is the circular economy's answer to this question. It not only conserves valuable resources but also protects your previous investments. Municipalities and craft businesses with expensive special superstructures based on Sprinters especially benefit from this approach.

The conversion offers tangible advantages:

  • Investment Protection: Existing and often expensive superstructures (e.g., refrigerated boxes, workshop equipment, garbage compactors) remain completely intact.

  • Sustainability: Continuing to use the chassis avoids the CO₂ emissions and resource consumption that occur during the production of a completely new vehicle.

  • Proven Basis: You continue to use the familiar and reliable vehicle base, which increases acceptance among drivers.

  • Modern Performance: A Heero DTE Sprinter achieves a range of up to 425 km with its 96 kWh net battery capacity and can fast charge with up to 135 kW.

With a customized conversion solution, you combine the best of both worlds and make your fleet future-proof.

Charging infrastructure and lifespan: Practical perspectives

The transition to an electric commercial vehicle also requires a look at the operational charging infrastructure and the durability of the components. Thoughtful planning is the key to success here. The good news: Both are no longer obstacles today but a calculable part of the transformation. The 40% funding for the charging infrastructure also significantly lowers the entry barrier here.

With modern DC fast charging technology, the vehicles are quickly ready for use again. A Heero tourer with a 96 kWh battery is charged to 80% at a 135-kW station in about 35 minutes. Even a large mid-floor bus with 115 kWh net battery capacity reaches this charge level at a 165-kW station in under 30 minutes. The lifespan of modern lithium iron phosphate batteries (LFP) is designed for thousands of charging cycles and often exceeds the typical service life of the vehicle of eight to ten years. After that, the batteries can begin a second life as stationary energy storage systems, which further increases sustainability. Thus, electrification is not just a short-term funding decision but a long-term secure investment.

FAQ

What is the range of a converted E-transporter?

The range depends on the base vehicle and battery configuration. A Mercedes-Benz Sprinter (DTE-Sprinter) converted by Heero achieves a practical range of up to 425 km. A Heero eTransporter as a new vehicle even reaches up to 500 km.



What does Total Cost of Ownership (TCO) mean?

Total Cost of Ownership (TCO), or overall operating costs, is a calculation method that considers all costs over the entire service life of a vehicle. This includes costs beyond the purchase price, such as expenses for energy (electricity/diesel), maintenance, repairs, insurance, taxes, subsidies, and the estimated residual value.



By when must the funding application for the 80% subsidy be submitted?

The key deadline for submitting project outlines for the current funding call of the BMDV is August 31, 2025. Timely planning is crucial.



How long does it take to charge an electric commercial vehicle?

The charging time depends on battery size and charging power. At a DC fast charging station with 135 kW, a Heero eTransporter (96 kWh battery) can be charged from 10% to 80% in about 35-40 minutes. This allows for high operational flexibility during the working day.



Does the payload remain intact during a conversion?

The additional weight of the battery is taken into account during the conversion and is partially compensated by the removal of the engine, transmission, and exhaust system. Depending on the base vehicle, there may be slight adjustments to the payload, but these are precisely tailored to the intended use in advance.



Which vehicles can be converted to electric drive?

Heero specializes in the Diesel-to-Electric conversion (DTE) of Mercedes-Benz Sprinter models. This focus enables a standardized, high-quality, and efficient conversion process for one of the most commonly used transporter platforms in Germany.