Preparing your fleet for the Smart City: Electric conversion and the funding deadline applicable until August 31, 2025
Preparing your fleet for the Smart City: Electric conversion and the funding deadline applicable until August 31, 2025
Up to 425 km range after conversion – without the costs of a new vehicle. The federal KsNI funding directive covered up to 80% of the additional costs until 2024; new funding calls are not planned.
The topic briefly and concisely
The BMDV funding (KsNI) offered up to an 80% subsidy on the additional costs of vehicle conversions; the guideline ran until 2024, and new funding calls are not planned.
A diesel-to-electric conversion (DTE) reduces total operating costs (TCO) through energy and maintenance savings and conserves resources in terms of the circular economy.
The EU Clean Vehicles Directive already requires up to 45% clean vehicles for public contracts, which increases the pressure for municipal and commercial fleets.
To prepare your fleet for the Smart City with an electric retrofit, structured planning is required. Rising diesel prices, strict climate regulations through the Clean Vehicles Directive, and threatening access restrictions demand a future-proof strategy. A conversion is the pragmatic solution. It protects your capital, preserves the value of your special bodies, and utilizes the principles of the circular economy. This article shows you in four clear steps how to plan the transition strategically, clarify the funding situation reliably, and optimize the total cost of ownership (TCO) of your fleet.
Analyze pressure to act: Why the time until August 2025 is crucial
The KsNI funding guideline of the Federal Ministry for Digital and Transport (BMDV) was a decisive factor for the cost-effectiveness of your fleet conversion. It subsidized the additional investment expenses for the conversion or purchase of electric commercial vehicles with up to 80% until 2024. It has been discontinued since August 2024. At the same time, the EU's Clean Vehicles Directive has tightened the requirements for public contracts since August 2, 2021. For the period until the end of 2025, it demanded a procurement quota of 45% for clean buses, of which half had to be completely emission-free. This combination of expired funding and increasing regulatory pressure shifts the leverage from subsidies to the economic viability of the conversion. The transition not only secures your planning certainty for the next 10 years, but also a clear competitive advantage. Analyzing the deadlines and laws is the first step toward a well-founded decision.
Your 4-step checklist for successful fleet electrification
A structured approach is the key to efficiently equipping your fleet for the future. With this checklist, you can navigate safely through the process:
Conduct a needs analysis: Analyze the daily routes and mission profiles of your vehicles. Our HEERO eTransporters offer a range of up to 500 km, which is sufficient for most urban logistics and service tasks.
Check and classify subsidies: Identify all relevant funding pools. In addition to the 80% for vehicle conversion applicable until 2024, there was up to a 40% subsidy for setting up the charging infrastructure.
Evaluate cost-effectiveness (TCO): Calculate the Total Cost of Ownership. Take into account the savings in energy (electricity vs. diesel), maintenance, taxes, and CO₂ levies, which often make up 50% of the operating costs.
Select an implementation partner: Choose an experienced partner who not only offers the appropriate conversion solutions but also supports you in applying for funding and planning the charging infrastructure.
The careful execution of these four points lays the foundation for a smooth transformation. Next is the detailed consideration of the financial aspects that will support your decision.
Reducing costs: Total Cost of Ownership (TCO) as a basis for decision-making
The higher acquisition costs of an electric vehicle are often overestimated when ignoring the total cost of ownership (TCO). The TCO approach considers all costs over the entire vehicle lifespan of 5 years or more. Studies show that electric vans can already achieve TCO parity with diesel vehicles today, depending on the usage profile and electricity prices. Operating costs decrease by up to 50% as a result of a conversion. An electric motor has significantly fewer wear parts than an internal combustion engine, which reduces maintenance costs by at least 40%. However, the greatest leverage is energy costs, which can be over 60% lower compared to diesel. A detailed TCO analysis is therefore essential. It shows how conversion not only protects the environment but also your budget.
Classifying funding pools: Which grants were recently available
The public sector has supported the transition to electromobility with substantial funding. For investment planning, it is crucial to know the current status of the programs.
Vehicle Subsidies: Until 2024, the BMDV program covered up to 80% of the additional investment expenses of a conversion or a new purchase.
Charging Infrastructure Subsidies: The development of non-public DC fast-charging stations on company premises was included in the directive as an eligible component, also for small and medium-sized enterprises (SMEs).
Eligible Charging Capacity: HEERO vehicles charge as standard with up to 135 kW, the medium-floor bus even with up to 165 kW, which is relevant for the technical requirements of the funding guidelines.
Application Status: The vehicle funding program ran until 2024 – according to the federal government, no new funding calls are planned, already approved projects will be fully funded.
The combination of these subsidies has made conversion economically attractive for years. Regardless of the funding situation, you need the right technical equipment, which we will look at in the following.
Technology in focus: Range and charging power for practical use
Practical suitability is the be-all and end-all for commercial vehicles. Our converted models are based on proven technology and deliver impressive performance data. The HEERO eTransporter achieves a range of up to 500 km. The converted DTE Sprinter manages up to 425 km. Even our buses, such as the low-entry and low-floor buses, achieve up to 300 km on a single charge. The basis for this is a 110 kWh gross battery (96 kWh net). Only the low-entry bus uses a larger 137 kWh battery (115 kWh net). Thanks to DC fast charging with up to 165 kW, the bus is 80% charged in around 30 minutes. These values prove that a conversion for Zero-Emission-Zones means no compromises in terms of usability. This makes the transition a sustainable and long-term solution.
Living sustainability: Circular economy as a smart way to the future
Converting your existing fleet is a strong commitment to the circular economy. Instead of scrapping a fully functional vehicle with an expensive specialized body, its lifecycle is extended by many years. This approach significantly reduces the need for new raw materials compared to buying new. You avoid the embodied energy that occurs during the production of a completely new vehicle. This is how your fleet becomes a marketing tool for lived sustainability. The CO₂ savings are twofold: they occur when the chassis is continued to be used and in daily, locally emission-free operation. This is the logical next step for any company that takes its sustainability goals seriously and at the same time wants to act economically. Now we summarize the decisive advantages for you.
More useful links
Förderdatenbank des Bundes provides detailed information on funding programs of the Federal Ministry for Economic Affairs and Energy (BMWi) for e-commercial vehicle applications and the associated infrastructure.
The Bundeswirtschaftsministerium informs in an article about the electromobility funding program and its objectives.
The Bundesministerium für Verkehr und digitale Infrastruktur (BMVI) provides an overview of its funding programs in the field of freight transport and logistics.
The Kraftfahrt-Bundesamt (KBA) offers comprehensive statistics on vehicles and road traffic in Germany.
On the website of the Kraftfahrt-Bundesamtes (KBA) you will find current statistics on new vehicle registrations.
The Umweltbundesamt (UBA) confirms the climate advantage of electric cars and their positive effects in a press release.
Another press release from the Umweltbundesamtes (UBA) highlights the clear economic importance of electromobility.
The KfW (Kreditanstalt für Wiederaufbau) provides information on its funding programs for companies in the field of electromobility, energy and environment.
The Nationale Leitstelle Ladeinfrastruktur offers specific information and recommendations on expanding the charging infrastructure for commercial vehicles.
