Bus Subsidies 2025: What the grant for electric bus retrofitting and acquisition covered until July 2026

Dominik Ashkar, CEO HEERO Motors vor HEERO Minibus

Bus Subsidies 2025: What the grant for electric bus retrofitting and acquisition covered until July 2026

08/06/2025

8

Minutes

Max Knirsch

Product Expert

08/06/2025

8

Minutes

Max Knirsch, Product Expert at HEERO Motors

Max Knirsch

Max Knirsch

Product Expert

The 2025 bus funding circular contextualized the federal investment grants. Public transport operators and municipalities were recently able to receive reimbursements of up to 70% of the additional costs in cases of low electrification levels, otherwise 55%. The call ended on July 21, 2026; diesel driving bans and operating costs remain a business-critical issue.

The topic briefly and concisely

The German federal government recently funded the purchase and conversion of buses to electric drives with up to 70% of the additional investment costs, otherwise 55%.

Transport companies and municipalities were eligible to apply; project outlines had to be submitted by July 21, 2026.

The HEERO conversion was eligible for funding in the most recent call and, thanks to the principle of the circular economy, conserves both budget and resources.

Rising operating costs, impending diesel driving bans, and ambitious climate targets present fleet operators with enormous challenges. The federal government has created a decisive solution for 2025 with the reissue of the "Directive on promoting alternative drives for passenger transport buses". This call for funding covered up to 70% of the additional investment expenditure in the case of a low degree of electrification, otherwise 55%, and ended on July 21, 2026. HEERO is your partner for electrification – whether through the purchase of new e-Sprinters or the patented conversion of your existing vehicles. We show you how to not only protect the environment but also raise the cost-effectiveness of your fleet to a new level.

Overview: The Federal Funding for Alternative Drives 2025

The Federal Government has launched several funding calls to accelerate the transition to clean bus fleets. The most recent call ran from May 26 to July 21, 2026; public transport companies and municipalities were able to submit project outlines during this period. The goal is to drastically reduce CO2 emissions in the transport sector and improve air quality in cities. Since 2021, around 3,500 buses have already been funded with a volume of 1.2 billion euros. The funding explicitly covered both the purchase of new vehicles and the conversion of existing vehicles, representing an economically attractive option for fleet operators. The funding was awarded in a competitive process in which criteria such as CO2 avoidance and electrification rates played a central role. A follow-up call has not been announced; thus, the path to sustainable mobility remains a business management task.

Funding requirements and quotas: What the subsidy covered most recently

To receive the maximum funding, applicants had to meet clear conditions. A key requirement was the exclusive use of electricity from renewable sources for the funded vehicles and charging infrastructure. The funding rates of the most recent call were as follows:

  • Up to 70% of the additional investment expenses with a low level of electrification, otherwise 55%, for the purchase of or conversion to battery- or fuel cell-based drives.

  • Up to 40% of the costs for the necessary charging, refueling, and maintenance infrastructure.

  • For small and medium-sized enterprises (SMEs), an increase in the funding rate by up to 20 percentage points was possible.

  • Feasibility studies were also subsidized by up to 50% in order to plan the transition strategically.

HEERO supports you in assessing the eligibility of your investment for funding, from vehicle configuration to proof of green electricity sourcing. With our expertise in the field of alternative drives for buses, we check which criteria an application had to meet for maximum funding.

The D2E conversion: A smart alternative to buying new

The funding guideline explicitly recognized the conversion of diesel vehicles as an equivalent option to purchasing a new one. This is an economically superior solution, particularly for fleets with expensive custom bodies, such as those used in many Mercedes-Benz Sprinters. Instead of buying a completely new vehicle for over 150,000 euros, you preserve the value of your existing vehicle through the conversion. Our patented conversion takes just 10 days and transforms your diesel Sprinter into a powerful electric van with a range of up to 425 km. This circular economy approach not only protects your budget but also valuable resources. In the most recent call, the funding rate was up to 70% of the additional costs for a low level of electrification, otherwise 55%, and also applied to conversions. Learn more about the benefits of E-Bus Umrüstung und Förderung.

The path to promotion: Application procedure in 2 stages

The application process is structured in two stages to ensure an efficient and targeted allocation of funds. HEERO accompanies you as a solution-oriented partner throughout the entire process. Here are the decisive steps:

  1. Submission of the project outline: In the 2026 funding call, a project outline had to be submitted via the online portal "easy-Online" by July 21, 2026. This outline describes the project, the expected CO2 savings, and the funding requirement.

  2. Evaluation and selection: The project management organization Jülich (PtJ) evaluates the submitted outlines based on criteria such as funding efficiency and contribution to climate protection.

  3. Request for full application: Positively evaluated projects are requested to submit a formal funding application.

  4. Application review and approval: After the final review, the funding decision is issued, which is the basis for the binding order of the vehicles or the commissioning of the conversion.

With our Checkliste für den E-Bus Förderantrag, we ensure that the documents are complete and no detail is overlooked.

Focusing on Cost-Effectiveness: TCO Benefits Through Retrofitting and Support

Government funding was the catalyst, but the real strength of electrification lies in the long-term reduction of the Total Cost of Ownership (TCO). An electric Sprinter converted by HEERO reduces energy costs per 100 kilometers by up to 70% compared to a diesel vehicle. In addition, costs for vehicle tax and CO2 levies are eliminated, while maintenance costs drop by at least 50%. In combination with the bus subsidy, which covered up to 70% of the additional costs, the investment in a conversion often paid for itself in less than 4 years. For logistics companies, craft businesses, and municipalities, this means planable and sustainable budget relief. Our experts will be happy to calculate your individual TCO savings in a personal consultation on fleet electrification.

Conclusion: Your advantage with HEERO

The federal bus funding has economically supported the transition to electromobility across several calls for applications. With funding rates of up to 70% for new acquisitions and retrofits for low levels of electrification, otherwise 55%, the course has been set for an emission-free future. The most recent call ended on July 21, 2026. HEERO offers you, as a technology leader, not only field-tested electric vehicles based on the Sprinter, but also an economically and emission-wise superior alternative. We combine performance, sustainability in terms of the circular economy, and significant cost advantages. As your innovative partner, we accompany you from funding advice to integration into your fleet. Assess the funding situation with us and shape the future of your fleet. Request a personal consultation or book a real-world test free of charge to experience the HEERO performance for yourself.

HEERO Motors. Electric solutions for real-world, high-demand use cases.

HEERO Motors is a brand of Eumova GmbH.

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© 2026 HEERO Motors. All rights reserved.

© 2026 HEERO Motors. All rights reserved.

© 2026 HEERO Motors. All rights reserved.