Electric Bus Subsidies 2026: Up to 70% federal funding for buses with alternative drives

Yellow medium-low-floor Electric MiniBus from the HEERO Motors brand

Electric Bus Subsidies 2026: Up to 70% federal funding for buses with alternative drives

7

Minutes

Profitability expert Jan Schreiter HEERO Motors

Jan Schreiter

Profitability Expert

7

Minutes

Profitability expert Jan Schreiter HEERO Motors

Jan Schreiter

Profitability Expert

The German Federal Ministry for Digital and Transport has launched a new funding call: transport companies, public transport authorities and leasing companies can now receive subsidies of up to 70% of the additional investment costs for electric, hydrogen and biomethane buses – including charging infrastructure. Discover what has changed, who is eligible to apply, and how to optimally prepare your project outline: read all the details in our full article.

The topic briefly and concisely

From 2026, the BMV will subsidise buses with alternative drivetrains (battery, fuel cell) with up to 70% of the additional investment costs.

Submission deadline for the project outline: 21 July 2026 via "easy-Online" (Federal Funding Portal).

Eligible applicants include transport operators, public transport authorities, and financing entities.

Anyone investing in new bus fleets today is investing in the public transport infrastructure of tomorrow—and has access to more favourable conditions than ever before. The current call for funding from the Federal Ministry of Transport seamlessly concludes the first funding guideline (2021–2025) and establishes a new foundation based on the General Block Exemption Regulation (GBER). This means: higher legal certainty, modernised prioritisation criteria, and a clear path up to 2030.

This article summarises all key information from the online seminar on 28 May 2026 (BMV, project management agency Jülich, NOW GmbH)—compact, action-oriented, and serving as a direct basis for decision-making for transport companies and authorities.

Status Quo: Where does Germany stand on emission-free buses?

As of April 2026, there are 86,741 buses registered in Germany. Of these, 6,053 are zero-emission, which corresponds to just under 7 % of the total fleet. The picture for new registrations looks significantly more promising: in April 2026, the share of climate-friendly buses was around 17 %, and averaged approximately 23 % over the last twelve months. The market is shifting, but the majority of fleets still run on diesel.

The previous subsidy scheme has contributed significantly to this: a total of 5,309 buses with alternative drives were applied for, including 4,658 battery-electric buses (87.7 %), 629 fuel cell buses (11.8 %) and 22 biomethane buses (0.4 %). In addition, over 2,000 subsidised charging stations and two hydrogen filling stations were funded. 64 % of the approved vehicles have already been ordered, with 43 % procured.

The direction is clear. However, the transformation of the entire bus fleet in Germany requires further political momentum, and this is now on the table: with a new funding directive, new rules of the game and sufficient budget for at least 1,500 additional buses.

The new BMV subsidy programme – key details at a glance

Key Data

New BMV Funding Call (2026)

Programme

Funding directive for alternative drives of buses (BMV / NOW / PtJ)

Duration

From 2026 to 2030 (new directive according to GBER)

Funding Rate Bus

Activation programme: up to 70 % | Scaling programme: up to 55 %

Funding Rate Infrastructure

Up to 40 % (activation programme only)

Minimum Volume

At least 1,500 buses

Submission Deadline Sketch

21 July 2026 via easy-Online

Max. Grant

€12.5 million per sketch submitter

Application Portal

easy-Online (Federal funding portal)

Activation Program vs. Scaling Program: Which program is right for you?

The programme distinguishes between two pillars, which are based on the degree of electrification of the existing fleet:

Programme

Bus Funding Rate

Infrastructure Funding Rate

Activation Programme (K1–K3)

Up to 70%

Up to 40%

Scaling Programme (K4)

Up to 55%

Not eligible for funding

Activation Programme (Funding Pillars 1 & 3)

For transport companies that are only at the beginning of their electrification journey, the Activation Programme is the ideal entry point. It is aimed at companies whose fleets fall into categories K1 to K3:

•        K1: No electrification existing, transition rate ≤ 30%

•        K2: Low electrification, transition rate ≤ 30%

•        K3: Medium electrification, transition rate ≤ 50%

The Activation Programme funds both buses (up to 70% of the additional investment costs) and the associated charging infrastructure (up to 40% of the total investment costs). Please note: Infrastructure can only be applied for in conjunction with the vehicle – separate funding for infrastructure is not possible.

Scaling Programme (Funding Pillar 2)

Those who already have a high electrification rate (category K4) automatically enter the Scaling Programme. Here, the funding rate is up to 55%, and infrastructure is not subsidised. The focus lies on the continued rollout of proven technology.

For coaches, long-distance buses and other transport services (in accordance with §§42a, 43, 44, 46, 48, 49 PBefG), only the Activation Programme via Funding Pillar 3 applies.


What is eligible for funding and what is not?

Eligible for funding are:

•        Additional capital expenditure for buses with alternative drives (battery-powered, fuel cell, biomethane, trolley buses) compared to the diesel reference bus

•        Purchase of charging and refuelling infrastructure, including transformers, chargers, contact systems, battery buffer storage, H2 storage, pipelines, and much more

•        Software for load, charging, and refuelling management

•        Cables for power transmission and communication (technology-dependent)

•        Delivery, installation, and construction planning costs in connection with the funded infrastructure

•        Maximum grant: €12.5 million per sketch submitter (all submitted sketches are added together)

 

Not eligible for funding are:

•        Manufacturers, research projects, studies

•        Buses that are not used in Germany

•        Buses already ordered or infrastructure already procured

•        Personnel and training, licensing and leasing models (e.g. SaaS)

  • Additional land areas, depot management systems

Click here for more information on our eligible Electric MiniBuses/FlatBeds/BoxVans.

Calculation example: How high is the funding in concrete terms?


Example: 12m solo battery bus within the activation programme •  Cost of battery bus: €525,000 •  Cost of diesel reference: €280,000 •  Additional investment costs: €245,000 •  Maximum funding (70%): €171,500 •  Cost post-funding: €353,500 •  Delta compared to diesel bus post-funding: €73,500

 

Funding is provided for the difference in cost between the battery bus and the comparable diesel bus (base version, no optional extras). The subsidy covers up to 70% of these additional costs. Following the application of the funding, a 12m solo battery bus remains roughly €73,000 more expensive than a comparable diesel – this gap narrows further once operating costs and CO₂ savings potentials are factored in.

For the infrastructure, the funding rate of 40% is applied to the full investment costs (not just the additional expenditure). Infrastructure components must be directly linked to the roll-out of the technology.

The subsidy process step by step

In principle, the following entities are eligible to apply:

•        Public and private transport operators

•        Public transport authorities

•        Financial providers (e.g. lessors)

 

Separate project outlines must be submitted for different drivetrain technologies (battery vs fuel-cell buses) and different operational contexts (public transport, coach and long-distance travel, other transport services). Multiple project outlines from a single applicant will be combined towards the maximum funding limit of €12.5 million.

Step 1: Submit the project outline by 21 July 2026

The project outline is to be submitted electronically via the federal funding portal "easy-Online". In addition, the Excel spreadsheet for calculating eligible expenditure must be uploaded as a PDF alongside the outline and sent as an Excel file (including the easy-Online reference) to ptj-evi-busse@fz-juelich.de.

•        Always download the latest documents in advance from the project management agency's website

•        For coaches/long-distance buses: Support the diesel reference prices with commercial offers directly within the project outline

•        For public transport buses: Supporting offers are only required at the formal application stage

Step 2: Prioritisation by the PtJ

The Project Management Jülich (PtJ) reviews and prioritises all submitted outlines based on the categories K1–K4, environmental benefits, funding efficiency as well as the implementation concept and the future outlook.

Step 3: Invitation to apply (from mid-August)

Prioritised applicants will receive an invitation to submit a formal funding application via email (sent to the address provided in the outline). The application period is 8 weeks from approx. mid-August. Full project financing must be secured at the time of application.

Step 4: Approval and implementation

Following approval, the project duration of up to 3 years begins. Within this period, the following deadlines apply:

•        Buses: Tender process within 6 months, order placement within 12 months

•        Infrastructure: Commencement of construction within 12 months


Important obligations: Funded companies must provide master and operating data of the vehicles and infrastructure, involve the PtJ and NOW in public relations events (with at least 8 weeks' notice) as well as permit logo placements on the funded items.


The eBusTool: Digital planning before you apply

For preparation, we recommend using the free eBusTool from NOW GmbH. It offers:

•        Basic knowledge about Electric MiniBuses, electric buses and drivetrain technologies

•        Cost-comparison calculator for different drivetrain variants

•        Analysis of operational procedures and climate impacts

•        Vehicle database featuring current models (battery, fuel cell, trolleybus)

 

The eBusTool is accessible free of charge.

When is the submission deadline for the project outline?

The project outline must be submitted electronically via the 'easy-Online' funding portal by 21 July 2026.

Which drive technologies are eligible for government funding?

Funding is provided for battery-powered, fuel-cell-powered (hydrogen), trolleybus, and biomethane-powered buses. The programme is designed with a technology-neutral approach.

What is the maximum funding amount per sketch submitter?

A maximum funding of 12.5 million euros is available per applicant. Multiple project outlines from the same applicant will be aggregated.

Can I also apply for funding for infrastructure alone?

No. Charging infrastructure is only eligible for funding in conjunction with the vehicle and is exclusively intended for the activation programme. No infrastructure is funded under the scaling programme.

I have already ordered buses – can I still submit an application?

No. In principle, buses that have already been ordered or infrastructure that has already been procured are not eligible for funding. The application must be submitted before placing the order.

How is my company allocated to a funding programme (Activation vs. Scaling)?

The classification is based on the fleet's current level of electrification and the conversion rate. Companies with less than 30% of their fleet electrified typically qualify for the Activation Programme (which offer higher funding rates). Companies that already have a high level of electrification (Category K4) are assigned to the Scaling Programme.