Fleet conversion: What the 80% subsidy achieved by 2024
Already over 3,500 electric buses have received government subsidies – when will you electrify your fleet? In view of rising diesel prices, stricter climate regulations, and complex bureaucracy, converting your existing vehicles is the pragmatic solution.
The topic briefly and concisely
State funding covered up to 80% of the additional costs of a conversion until 2024; since August 2024, no new calls for funding are planned.
A diesel-to-electric conversion reduces the total cost of ownership (TCO) through lower energy, maintenance, and toll costs.
The retrofitting in the sense of circular economy conserves resources, avoids CO₂, and maintains the value of expensive special superstructures.
Modernizing a commercial fleet is a strategic necessity. High operating costs, the European Clean Vehicles Directive, and national climate targets are creating pressure to act. However, many decision-makers shy away from the high investments in new electric vehicles and the complexity of the transition. Retrofitting offers an economically and ecologically superior alternative here. This article shows you how to bring your fleet up to the state of the art with a retrofit, which subsidies recently covered up to 80% of the additional costs, and how to sustainably reduce the Total Cost of Ownership.
Your fleet under pressure: Legal requirements and economic reality
Operating a commercial vehicle fleet is becoming increasingly complex. The EU Clean Vehicles Directive already prescribes fixed quotas for low-emission vehicles in public procurement today, which will be further tightened from 2026. For light commercial vehicles, a zero-emission mandate will even apply from 2026. At the same time, fluctuating diesel prices and CO₂ taxation are significantly burdening the total cost of ownership (TCO) of your fleet. These TCO include all costs over the lifespan of a vehicle, not just the acquisition. Transitioning is therefore not a question of if, but of how. Many shy away from the bureaucracy of the e-bus funding 2025. Yet the right partner makes the process manageable and puts the subsidies into a realistic perspective.
The 4-step checklist for modernizing your fleet
A systematic approach is the key to bringing your fleet up to the latest state of the art with a retrofit. With this clear procedure, you can navigate safely through the process:
Conduct a subsidy analysis: Check which programs are available to you. The BMDV's KsNI directive offered up to 80% subsidies for vehicle retrofits and included charging infrastructure, but it expired in 2024 and has been discontinued.
Evaluate economic viability (TCO): Compare the TCO of a retrofitted electric van with a diesel. Studies show that electric vehicles often amortize their higher acquisition costs in four to six years due to lower energy and maintenance costs.
Evaluate existing vehicles: Identify vehicles in your fleet whose substance is good but whose drive system is outdated. Particularly expensive special bodies benefit from a professional electrification, as the value of the body is preserved.
Plan the charging infrastructure: Analyze your charging requirements. For most fleets, charging overnight in their own depot is the most economical solution. Our HEERO models, such as the Tourer, charge with up to 135 kW DC, and the medium low-floor bus even with up to 165 kW DC.
This structured planning ensures a smooth transformation of your fleet.
Classifying funding pots: Up to 80% subsidy was available until 2024
The subsidy landscape in Germany was long a decisive advantage for rapid fleet modernization. The Federal Ministry for Digital and Transport (BMDV) provided massive support for the transition under the Electromobility Funding Guideline. Decisive is the current status: The federal KsNI funding ran until 2024. New funding calls are not planned; projects already approved will be fully funded. The funding rates were clearly defined: up to 80% of the additional investment costs for converting a vehicle to electric drive. In addition, up to 40% of the costs for setting up the necessary, non-public charging infrastructure at the depot were covered. To receive these funds, there is no need to go it alone; the process from collection to delivery is accompanied by us. The integration of these subsidies is a central lever for assessing the economic efficiency of the transition.
TCO Analysis: Why Retrofitting is More Economical than Purchasing New
Analyzing the Total Cost of Ownership (TCO) is essential for a strategic fleet decision. While electric vehicles are more expensive to purchase, they stand out with significantly lower operating and maintenance costs. A conversion enhances this advantage. It preserves the value of your already existing and often expensive custom bodies. Purchasing a new vehicle would destroy this value. Studies show that battery-electric trucks will be the most cost-effective option for decarbonization in most classes by 2030. Our HEERO solutions are based on this logic. The reduction of total fleet costs is achieved through three factors:
Lower energy costs: Electricity is significantly cheaper per kilometer than diesel.
Reduced maintenance: An electric drive has fewer wear parts than an internal combustion engine, which reduces service costs by up to 50%.
Elimination of CO₂ tax and tolls: Electric commercial vehicles are exempt from truck tolls, which further improves TCO.
In this way, the conversion becomes a profitable long-term investment.
Circular economy as a model for the future: Rebuild instead of throwing away
The decision to convert is also a strong commitment to sustainability and the circular economy. Instead of scrapping a fully functional vehicle, its lifecycle is significantly extended through electrification. This approach reduces the demand for primary resources like steel and aluminum by tons and avoids the CO₂ emissions that occur during the production of a new vehicle. The continued use of a chassis saves a significant portion of emissions compared to new production. The German automotive industry is increasingly pursuing a "Design-for-Sustainability" approach that takes the entire value chain into account. A professional extension of your fleet's lifespan not only protects budgets but also valuable resources. The batteries themselves are designed for a long service life and often last 15 years or longer before being reused in a second life, for example, as stationary storage. This ensures the future viability of your fleet on all levels.
Practical technology: Focus on range and charging power
Concerns about insufficient range are often unfounded. Modern electric vans offer practical ranges for almost all application scenarios. The HEERO eTransporter achieves up to 500 kilometers, our converted DTE Sprinter up to 425 kilometers. Even our e-buses achieve a realistic range of up to 300 kilometers. These figures cover the daily mileage of most fleets. Battery capacity is crucial here: Our standard models use a 110 kWh gross battery (96 kWh net). The medium low-floor bus even features a 137 kWh battery (115 kWh net) for maximum performance. Charging infrastructure is the second decisive factor. With DC fast charging capacities of up to 165 kW, a bus is recharged to 80% in around 30 minutes. Careful planning of the charging infrastructure at the depot ensures that your fleet is fully ready for operation every morning.
More useful links
The Bundesamt für Logistik und Mobilität (BALM) offers detailed information on the Climate Protection and Sustainability in Transport (KSNI) funding program.
The Kraftfahrt-Bundesamt (KBA) provides current statistics on new vehicle registrations in Germany.
The Bundesministerium für Digitales und Verkehr (BMDV) provides comprehensive information on battery-powered electric mobility.
The Umweltbundesamt publishes press releases on the economic assessment of electric mobility.
Agora Verkehrswende offers publications and analyses on the topic of electric mobility.
The Fraunhofer ISI provides press releases on the deployment planning of electric trucks, their potentials, and costs.
The Deutsche Energie-Agentur (dena) provides information on the expansion of charging infrastructure for electric trucks, challenges, and solutions.
The Verband der Automobilindustrie (VDA) provides information on the drivetrain strategy for commercial vehicles.
The KfW-Bankengruppe offers funding programs and information on electric mobility for companies.
