Germany: 80% funding in 2025 for HEERO eMinibuses
Read the following HEERO update or request the HEERO whitepaper on minibus funding "Funding Call 2025 E-Buses."
The topic briefly and concisely
Funding call "Alternative drives for buses": Up to 80% funding for the additional costs compared to diesel buses. Full 80% funding for diesel-to-electric conversion.
Important deadlines: Sketch submission by August 31, 2025, via easy-Online.
Sustainable mid-sized low-floor buses: With a range of over 300 km and a battery capacity of 137 kWh, your bus lines will be emission-free and more economical with Heero eMinibuses.
The Federal Ministry of Transport supports the procurement of HEERO low-floor eMinibuses (M3 Class A) for transport companies in Germany with a new funding call from July 7, 2025.
Although you will be surprised by the purchase price with us, there is helpful support for the switch to eMobility in public transport. You will certainly not need to claim the maximum funding rate of up to €360,000 grant per new vehicle - we promise you that today. The best chances for you to jump on the funding train are therefore given.
We are happy to send you all gathered information as a white paper if you are interested - a short message is sufficient > Request Whitepaper.
Fourth BMV funding call 2025 explained briefly
The Federal Ministry for Digital and Transport (BMV) is once again supporting the procurement of battery-electric buses in 2025 with funding rates of up to 80%. We attended the online seminar to be able to report to you on how you can benefit from the new funding round and what to consider when submitting an application.
New Funding Call 2025: The federal government has launched the 4th round of e-bus funding to bring more electric buses onto the roads. Project outlines can be submitted until August 31, 2025.
80% Grant: Battery-electric buses (including electric small and midibuses like the Heero eMinibus) are funded with up to 80% of the additional costs compared to diesel - for the first time also conversions from diesel to electric drive (Diesel-to-Electro | HEERO D2EConversion).
Inclusive infrastructure: Charging infrastructure and workshop conversions for e-buses are also subsidized (usually 40% of the costs), so that not only the vehicles but the entire system is eligible for funding.
Competitive procedure: The allocation of funds is based on quality criteria - CO₂ savings, application concept, and electrification rate are among the selection criteria. Companies should submit a coherent overall concept. Approximately 1.2 billion euros are available in total.
Proven program: Nationwide, more than 250 transport companies have already benefited from the funding - around 3,500 e-buses have been approved, over 1,000 of them already in operation. The program is central to achieving the goal that by 2030, every second bus will be electric.
Background: Climate Goals and Demand for E-Buses
The transition to zero-emission buses is a key factor for climate-friendly mobility in cities. By the end of 2024, only about 3,375 e-buses were operating in Germany – that corresponds to just 10% of the city bus fleet, indicating a significant need for action.
The federal government has therefore set the goal of having every second city bus run electrically by 2030. Pressure is also increasing at the EU level: The Clean Vehicles Directive stipulates that from 2026, 65% of all newly procured public transport buses must be "clean", with at least 32.5% of these being fully emission-free (Zero-Emission).
To meet these requirements and promote the accelerated market rollout of electric buses, the BMDV has been financially supporting the purchase of electric vehicles in public transport since 2021. Following three successful calls (2021–2023), the fourth funding call for 2025 for e-buses is now underway.
This funding program is a milestone: Already over 1,000 battery-electric buses are in operation thanks to BMV subsidies. Together, they avoid around 830,000 tonnes of CO₂ over their lifetime. In total, around 3,500 e-buses have been approved since 2021, spread across about 250 municipal and private transport companies throughout Germany.
The previous projects demonstrate how the funding removes investment hurdles. From large cities like Berlin - where BVG, thanks to federal funding, can double its e-bus fleet to over 400 vehicles by 2025 - to smaller cities (e.g., Konstanz, which aims to electrify half of its bus fleet by 2025), operators benefit from the subsidies. The market offering of electric buses is growing and prices are falling for everyone who switches now.
With the 4th funding call for 2025, the Ministry of Transport is now providing additional resources to continue this trend and bring more battery-electric buses - including mini- and midi-buses - onto the road.
For providers of innovative solutions like the Heero eMinibus, this means that up to 80% of the investment costs can be covered by funding - a crucial incentive to electrify the fleet promptly.
Funding Program 2025: Terms and Eligible Items
What is funded?
The focus is on battery-electric buses in passenger transport - from standard and articulated buses (M3 class) to minibuses (M2 class) for public transport, shuttle, or company transport.
New in 2025 is that, in addition to new acquisitions, the conversion of existing diesel buses to electric drive is also eligible for funding. This offers operators the opportunity to retrofit existing vehicles - for example, diesel rear low-floor minibuses - into HEERO eMinibuses instead of decommissioning them.
The prerequisite is that the conversion is economically viable (cheaper than a new purchase or due to lack of new vehicle options) and recognized quality standards are met (the Ministry of Transport recommends compliance with defined minimum standards for conversions).
In addition to the vehicles themselves, the infrastructure for the commissioning of E-buses is also funded. This includes in particular charging facilities at the depot (e.g., depot fast chargers) as well as necessary workshop upgrades (e.g., high-voltage equipment for maintenance). Non-public charging infrastructure is eligible for funding as it directly serves the operation of the bus fleet.
Tip: The required charging points and conversions should be realistically sized and justified in the project outline (number of buses, charging capacity, depot layout, etc.) to score points in the competition process.
What is the level of funding?
The federal government covers 80% of the additional investment costs of an E-bus compared to a diesel bus of the same size/equipment. This funding rate applies to battery-electric buses and corresponds to the maximum allowed by EU state aid law for climate-friendly drives.
For conversions, the price difference to the diesel powertrain is not relevant. The funding amounts to 80% of the conversion costs. Very economical solutions can thus arise, especially for minibuses. The investment in a HEERO D2E conversion can be supported, costing only €16,000 in the best case.
The associated charging and workshop infrastructure is subsidized at a flat rate of 40% of the expenses. Thus, for example, chargers, transformer stations, or special tools can be almost half-funded by the federal government.
Good to know: Small and medium-sized enterprises (SMEs) may receive a bonus of +10 to 20% on both rates, provided the project would otherwise be unfeasible. A small enterprise could thus receive funding for up to 60% of the additional electric costs in the ideal case. Whether this SME bonus applies must be justified in the application and checked against the EU definition for SMEs (see SME checklist in the application package).
Legal foundations:
All these conditions are based on the funding guidelines „Alternative drives for buses in passenger transport“ from 07.09.2021, valid until the end of 2025. The program is technology-neutral but this article focuses exclusively on battery-electric buses (H2 and other fuels are not considered here).
The funding originates partly from the federal climate fund and partly from EU funds (NextGenerationEU Recovery and Resilience Facility, DARP), which are provided co-financed. A total of around €1.2 billion is available for the bus funding program - enough to support thousands of vehicles and the necessary infrastructure. Unused funds from previous calls are rolled over into this round, subject to the approval of the 2025 federal budget.
Application: How to get the funding
Sketch Procedure in Two Stages
The application initially does not occur as a complete application, but as a project sketch. Interested companies must submit a sketch of their project online by 31.08.2025.
This sketch includes all essential data: planned number and types of e-buses (or upgrades), procurement schedule, planned charging infrastructure, estimated total costs, as well as the expected CO₂ savings and electrification rate of the fleet.
Important: Each company should essentially submit only one sketch that bundles the entire project (exception: separate sketches if gas buses are also to be funded alongside e-buses, which we are not considering here).
Task holders (public transport task circles) that are currently tendering line bundles can also submit sketches - funding is not limited to transport companies.
Submission Portal:
The submission of sketches takes place exclusively electronically via the federal portal "easy-Online". After logging in, the corresponding funding program is selected and an online form is filled out.
Additionally, attachments specified by the project sponsor must be uploaded: a template for the project description (DOCX document) and an Excel calculation of the eligible costs. Both documents are provided by the project sponsor Jülich (PtJ) (links at the end of the post). They can be found together with a checklist on the PtJ website for the funding call for download. It is advisable to work through this checklist point by point to avoid forgetting any information.
Tip: Offers from manufacturers (price estimates) for buses and chargers do not need to be attached to the sketch - rough cost estimates are sufficient initially, detailed evidence will follow only in the full application. Nevertheless, the figures should be realistic and plausible.
TAN Procedure - Submit Completely Digitally:
If the sketch is filled out in the portal and all attachments have been added, it can be submitted online. A special feature of easy-Online is the TAN procedure for legally valid submission. The authorized signatory (e.g. management or agency head) receives a TAN code via email, which they enter in the portal to digitally sign the submission. This eliminates the previously customary printing with a handwritten signature entirely. The procedure is paperless and expedited.
If the authorized signatory does not fill out the application in the portal themselves (but, for example, a clerk or external service provider does), the TAN can still be used: however, a power of attorney from the authorized signatory is required, which must be uploaded as a PDF. So please clarify internally early on who applies for and redeems the TAN to avoid delays at the deadline.
Competitive Selection Procedure:
After the cut-off date of August 31, all submitted sketches are evaluated by the project sponsor and NOW GmbH (National Organisation for Hydrogen and Fuel Cell Technology, mandated by the BMV). The funding is not based on the first-come, first-served principle but on quality criteria in comparison of all projects.
Decisive factors include: the CO₂ savings potential of the project (dependent on driving performance and energy mix), the application context (e.g. city bus, long-distance, school transport - and whether the depot is possibly located in an environmental zone), as well as the electrification rate or the ambition level (how large the share of e-buses would be in the total fleet after implementation).
The requested funding requirement also plays a role. Projects that manage with less subsidy per ton of CO₂ may have an advantage.
Based on these criteria, a priority list is created. Typically, the best-rated sketches receive a preliminary funding commitment in autumn 2025 and are asked to prepare a formal full application. The final funding decisions (approvals) can only be issued once the federal budget 2025 has been approved and comes into force (expected autumn/winter 2025 according to BMV).
From Sketch to Full Application:
If your project sketch has been positively assessed, congratulations, you have cleared the first hurdle! Now you must submit the detailed application promptly (often within a few weeks). For this, PtJ provides you with the so-called sketch project sheet. This is automatically generated from your online sketch once you submit the sketch finally.
In the full application, binding offers for buses and infrastructure must be submitted, and any additional detail questions must be clarified. Note that each project partner requires a separate application: if, for example, a bus operation purchases the vehicles but the city builds the charging infrastructure, two grant applications must be submitted during the application phase (this could be presented together in the sketch phase). The project sponsor will provide detailed guidance on this.
After Approval:
Once the funding notice is available, you can officially start your procurements (prior to that, there is a spending reservation). Projects typically have a duration of about 2.5 years from approval to order, deliver, and commission the vehicles.
All funded buses must remain in operation for a certain purpose-binding period (typically at least 5 years in regular service to justify the funding - exact periods are specified in the notice).
After project completion, you must submit a proof of use, consisting of a numerical proof (cost receipts, invoices) and a report on the implementation. Only after this proof has been reviewed will the final amount of the grant be determined and a final decision issued.
So plan some resources for accounting and reporting. Funded companies are also asked to participate in accompanying research - for example, by reporting consumption data and operational experiences of the e-buses. These insights will contribute to the further development of the program.
More useful links
● BMV Press Release "Schnieder launches new bus funding call" (07/07/2025)
● Project Sponsor Jülich - Program page "Buses with alternative drives"
● PtJ - FAQ on bus procurement
● Call 07/2025 (PDF, 4th funding call)
● Revised funding guidelines (PDF, 06/26/2024)
● NOW GmbH - Info & Contact person
● Article "More electric buses in public transport" (Federal Ministry of Transport)
● Whitepaper "Funding Call 2025 – E-Buses" (We will send it to you upon request > Request Whitepaper)
FAQ
Who can apply for funding?
Eligible applicants are all operators of bus fleets in passenger transport, whether municipal or private. This includes, for example, municipal utilities, municipal transport companies, public transport authorities (districts, transport associations) as well as private bus companies (for example in travel, school, or works transport).
Even natural persons who are commercially active in passenger transport (sole proprietors) can generally apply for funding. It is important that the applicant has a branch in Germany at the time of payout.
Cooperation projects are also possible, but only one project outline per company should be submitted to avoid duplicate applications.
Which vehicles and measures are eligible for funding?
Eligible for funding are battery-electric buses (including battery trolleybuses) and the conversion of existing diesel buses to electric drive. Not only standard line buses benefit, but also small and midibuses, provided they are used in passenger transport (M2/M3 vehicles).
In addition, the necessary charging infrastructure (charging stations, transformers, cabling) and workshop infrastructure (e.g., diagnostic tools, training) are funded.
Diesel vehicles or conventional infrastructure are not eligible for funding. (Note: The funding call also includes fuel cell and biomethane buses, but these are not considered here - we focus on battery electric buses.)
How much funding is provided per vehicle?
Up to 80% of the additional cost of an E-bus compared to a diesel bus is covered by the federal government as a grant. This so-called funding quota applies uniformly for battery-powered buses (and fuel cell buses).
Full 80% support (without considering the reference price of a diesel counterpart) is only possible for conversion, i.e., the HEERO D2E Conversion.
For the charging/workshop infrastructure, the rate is 40% of the expenses. Small businesses can receive a bonus of 20% on these rates (medium-sized 10%). The SME status must be proven based on EU criteria (number of employees, turnover/balance sheet total).
How and until when do I apply?
The first stage is the project outline, to be submitted by no later than August 31, 2025 via the online portal easy-Online. On the platform, select “Federal Ministry for Transport” as the authority and then the program “Buses with alternative drives” and complete the electronic form.
Additionally, during the application process, you upload all required attachments (project description, cost estimates, etc. / templates are provided by the project sponsor PtJ).
Once everything is complete, submit the outline online and confirm it digitally with a TAN code. The authorized signatory receives a code by email and enters it on the portal - a printout is not necessary. After successful submission, easy-Online generates a PDF of the project outline with all details, which you should download and keep.
Must quotes or evidence already be attached to the outline?
No. In the outline phase, cost estimates and concept descriptions suffice. Specific quotes or price evidence (e.g., manufacturer quotes for buses/chargers) need to be submitted only with the full application. The same applies to detailed evidence for infrastructure - rough planning figures are sufficient initially.
However, the calculations should be realistic, and you should explain how they come about. The appropriate HEERO eMinibus prices for your planned vehicle can be obtained directly from HEERO Motors. This way, you substantiate the plausibility of your application with an already available quote.
Can I combine federal funding with state funds?
Yes, under conditions. It is important that the total amount of funding for the E-bus additional costs does not exceed the stated funding rates. Specifically allocated E-bus grants (from a state program, for example) are deducted from the federal funding to ensure a maximum of 80% of the additional costs is funded.
Exception: If another funding is technology-open and would have funded diesel buses to the same extent, it practically affects the diesel portion and does not have to be deducted. Example: A state funds every new bus with €50,000, whether diesel or E-bus - then you can use this €50,000 in addition to the federal grant. However, if the state gives €100,000 only for E-buses, this would be credited against the 80% federal funding (i.e., the federal government pays correspondingly less). Double funding of the same cost component is therefore excluded.
How long do I have to procure the vehicles?
After approval of the application, the project is usually designed so that within approximately 2½ years all funded buses are procured and put into operation, as well as the infrastructure built.
The exact implementation deadline is stated in the funding notice. Extensions are only possible in justified exceptional cases. This means that if, for example, you receive the notice at the end of 2025, all vehicles should be operational by mid/end of 2028.
This deadline is also relevant regarding EU co-financing - funds from the recovery plan must be disbursed by 2026/27. We plan your contracts with you realistically for this reason. Please contact us in good time.
What obligations exist after the funding?
After the conclusion of the project (i.e., after all funded buses are delivered and at least put into operation), you must submit a statement of use to the project sponsor. This consists of a financial statement (all invoices and payments for funded cost positions) and a factual report on the project progress.
The factual report includes, among other things, the number of units actually procured, operating experiences, and the achieved CO₂ reduction. Based on the reviewed statement, the project sponsor PtJ issues the final notice, which sets the final amount of the grant. Only then is the funding process completed.
Important: Any unneeded funds (if something was cheaper than planned) are then proportionally reduced; conversely, additional costs cannot be claimed back - so stick to budgets. Additionally, the funding typically obliges you to use the funded buses for a certain purpose-binding duration (often 5 to 6 years) in public passenger transport. An early sale or alternative use would only be possible with the consent of the funding provider, otherwise repayment threatens.
