Conversion to electric as a strategic decision to reduce overall fleet costs
Up to 425 km of range after a diesel-to-electric upgrade, and that without the cost of a new vehicle? Converting to electric is your strategic decision to reduce total fleet costs and comply with climate regulations. The government supports this step with a funding rate of 80% – but the deadline ends on August 31, 2025.
The topic briefly and concisely
The conversion to electric reduces the total cost of ownership (TCO) for fleets due to lower energy and maintenance costs as well as tax benefits.
Government subsidies (KsNI) cover up to 80% of the conversion costs, but applications must be submitted by August 31, 2025.
The continued use of existing vehicles through a diesel-to-electric conversion (DTE) is an active contribution to the circular economy and reduces the CO₂ footprint.
Rising diesel prices, increasing regulatory pressure from the Clean Vehicles Directive, and high CO₂ charges burden the budgets of fleet operators. Many are forced to choose between expensive new vehicles and uncertain residual values of their existing fleet. However, there is a third, economically superior option: converting to electric as a strategic decision to reduce overall fleet costs. This approach, also known as Diesel-to-Electric (DTE), not only preserves the value of your proven vehicles but also significantly lowers operating costs. Through a clear analysis of the Total Cost of Ownership (TCO), we will show you how to pragmatically manage this transition and benefit from maximum funding.
Why electrification is now an inevitable strategic decision
Given CO₂ taxes and the German implementation of the Clean Vehicles Directive (CVD), inaction will become expensive for fleet operators. The CVD has required mandatory minimum quotas for clean vehicles in public tenders since 2021, which will become even stricter by 2026. A perspective solely focused on the purchase price falls short. The crucial metric is the total operating costs, the Total Cost of Ownership (TCO), which includes all expenses over the entire lifespan of a vehicle. Retrofitting reduces these costs by saving up to 40% on energy, maintenance, and taxes. The current funding guidelines of the Federal Ministry for Digital and Transportation (BMDV) also support retrofitting with 80% of the investment costs, making the decision even more economical. With the right analysis of the total fleet costs, the transition becomes planned and profitable. This strategic step not only secures your competitiveness but also prepares your fleet for an emissions-free future.
Your 4-point plan to reduce fleet costs through electrification
A successful conversion requires a pragmatic and structured approach. With this four-step checklist, the conversion to electric becomes a manageable strategic decision.
Inventory and Needs Analysis: Accurately capture the daily mileage and typical routes of your fleet. This data forms the basis for the configuration of the optimal battery size and range, for example, up to 425 km for a converted Sprinter.
Conduct TCO Comparison: Compare the total life cycle costs of your current diesel vehicles with the forecasted costs after a DTE conversion. Take into account energy prices, maintenance, taxes, tolls, and the annual revenue from the greenhouse gas quota of up to €6,950 for an N3 vehicle.
Check and Secure Funding: Identify all relevant funding opportunities. The KsNI guideline from the BMDV offers an 80% subsidy for vehicle conversions and 40% for setting up the necessary charging infrastructure.
Implementation and Charging Infrastructure Planning: Secure your conversion slots in good time before the application deadline of August 31, 2025. Plan the establishment of the charging infrastructure in parallel, which ensures the readiness of your fleet with up to 165 kW DC fast charging.
Each of these steps helps to make the amortization calculation for your fleet transparent and minimize risks. Thus, the transformation becomes a calculable success.
The facts: TCO benefits of a diesel-to-electric conversion in detail
Lower Operating Costs as the Primary Driver
The greatest lever for reducing TCO lies in ongoing costs. The electricity costs per kilometer are significantly lower and much more stable compared to diesel. An electric drive also has up to 90% fewer moving parts than an internal combustion engine, which drastically reduces maintenance efforts. Oil changes, exhaust system repairs, and clutch wear are completely eliminated, reducing service costs by up to 40%. In addition, there are financial benefits such as exemption from vehicle tax for ten years and substantial savings on truck tolls. These combined savings often mean that the investment in a retrofit pays off within three to five years.
Additional Income through the THG Quota
Every electrified commercial vehicle generates additional income each year from the sale of greenhouse gas reduction certificates (THG quota). As an owner, you can certify the saved CO₂ emissions and sell them to companies required to meet quotas. For a light e-van (Class N1), this can amount to up to 625 euros per year; for heavy trucks, revenues increase significantly. These earnings further improve the TCO balance and accelerate the amortization of your investment. By professionally claiming the THG quota, you can tap into this potential without administrative effort. Thus, the retrofit is not just a cost-saving measure but becomes a new source of income.
Government funding as a crucial lever: Secure up to 80% grants
The federal government is accelerating the mobility transition with attractive subsidies that make the conversion to electric an extraordinarily profitable strategic decision. The central instrument is the funding guideline "Climate-Friendly Commercial Vehicles and Infrastructure" (KsNI) of the BMDV.
80% subsidy for vehicle conversion: The state covers 80% of the additional costs incurred by electrifying a diesel vehicle compared to a conventional new vehicle.
40% subsidy for charging infrastructure: The construction of the necessary charging infrastructure on your property will also be subsidized with 40% of the investment costs.
Funding for feasibility studies: The analysis of the electrification potential of your fleet is already eligible for support.
The deadline is important: Applications must be submitted by August 31, 2025. Given the high demand, it is advisable to start the process early. A conversion instead of new purchase is the most economical option thanks to this funding. The combination of massive subsidies and decreasing operating costs creates a unique opportunity to set the course for the future.
More than just costs: Sustainability and circular economy as a strategic advantage
Transitioning to electric is more than a financial optimization; it is a clear commitment to sustainability. By retrofitting your existing vehicles instead of purchasing new ones, you are acting in the spirit of the circular economy. You extend the lifespan of a proven chassis by many years and avoid the CO₂ emissions and resource consumption that occur when producing a completely new vehicle. This reduces your company's CO₂ footprint in two ways: during operation and procurement. A retrofitted vehicle saves several tons of CO₂ over its second half of life. This verifiable sustainability performance strengthens your brand with customers and partners and helps meet ESG criteria (Environmental, Social, and Governance). If you continue to use the existing fleet, you position your company as a responsible pioneer. In this way, electrification becomes an integral part of your future strategy.
Practicality in focus: mastering range and charging infrastructure
Ranges for Every Use
The concern about insufficient range is unfounded with modern electric commercial vehicles. HEERO offers the right solution for every requirement profile. The HEERO eTransporter achieves up to 500 kilometers on a single battery charge. A DTE-converted Sprinter offers a practical range of up to 425 kilometers. Even special vehicles like the mid- or rear-low-floor bus manage up to 300 kilometers, effortlessly covering typical daily routes in line or shuttle service. The tourer for nine people even reaches up to 400 kilometers range.
Building an Intelligent Charging Infrastructure
A powerful charging infrastructure is the backbone of every electric fleet. HEERO vehicles support DC fast charging with up to 135 kW, the mid-low-floor bus even up to 165 kW. This allows a battery to be recharged to 80% of its capacity in about 45 minutes. We support you in planning and implementing the suitable charging solution directly at your depot. The investment is additionally facilitated by a 40% government subsidy. A well-thought-out charging and route planning ensures maximum vehicle availability and gives you planning security for the next ten years. Thus, the transition to electromobility is not only strategically wise but also absolutely reliable in everyday operations.
More useful links
The Federal Office for Logistics and Mobility (BALM) provides detailed information on the funding program for climate protection and mobility (KsNI).
The Federal Environment Agency provides comprehensive information on climate protection in the transport sector.
The Federal Environment Agency publishes an analysis of the environmental balance of motor vehicles.
The Federal Motor Transport Authority (KBA) offers the latest annual balance on the vehicle fleet in Germany.
The Federal Ministry of Transport (BMV) provides information on electromobility, especially with battery technology.
The Fraunhofer ISI offers a press release regarding the deployment planning of electric trucks, their potentials, and costs.
FAQ
How long does a diesel-to-electric conversion take?
A DTE conversion at Heero is a standardized process. Typically, your vehicle is fully converted to a high-performance electric drive and ready for use again within ten to 15 working days.
Will the payload of my van be retained after the conversion?
Yes, our engineers place great emphasis on maintaining the original payload and transport capacity of your vehicle as much as possible. The specific weight of the battery is compensated by the elimination of the heavy diesel engine and transmission.
What happens to the old diesel engine?
In the spirit of the circular economy, the removed diesel engines, transmissions, and attachments are professionally refurbished and supplied to the spare parts market. This extends the lifespan of the components and reduces waste.
Do I get the GHG quota for converted vehicles?
Yes, every purely battery-electric vehicle, even a converted one, is eligible for the annual GHG premium. We are happy to assist you in applying to secure these additional revenues for your fleet.
What warranty is there on the conversion and the battery?
Heero offers comprehensive warranties on all installed electric components, including the drivetrain and high-voltage battery. You receive a warranty of up to eight years on the battery, providing you with long-term investment security.
Does Heero support the application for funding?
Yes, our expert team guides you through the entire process. We create a free funding analysis, help you compile the necessary documents, and support you in the timely submission of your application by August 31, 2025.
