2019: Funding for cross-sectional technologies such as pumps & motors
To make it easier for companies to invest in energy-efficient processes, the German Federal Ministry for Economics Affairs and Energy has realigned its funding programs in this area. Instead of dividing funding projects across different programs with diverse requirements as was previously the case, a simpler model known as the “Energy efficiency and process heat from renewable energies in industry - subsidies and loans” investment program went into effect as of January 1, 2019.
The new funding scheme is aimed at companies in all sectors and of all sizes, municipal utilities, and energy service providers. It is consciously designed to be technologically open in order to give companies the greatest possible freedom in implementing a solution best suited to their needs: from highly efficient standard components to complex system solutions, all measures that significantly increase electricity or heat efficiency and thus contribute to reducing energy consumption are eligible for funding.
The different financing needs of companies are taken into account by the ability to apply for funding either as a direct subsidy from BAFA or as partial debt relief (low-interest loan with repayment subsidy) from KfW. Applications can now be submitted to KfW (via house banks) and BAFA (via the online portal).
The four modules at a glance:
- Module 1: Cross-sectional technologies (pumps, motors, fans, etc.) for rapid efficiency gains with a funding rate of up to 40% of eligible investment costs.
- Module 2: Renewable energies for supplying process heat with a funding rate of up to 55% of the eligible investment costs.
- Module 3: Measurement and control technology and energy management software to support digitization with a funding rate of up to 40% of eligible investment costs
- Module 4: Open-technology subsidies for investments that increase electricity or heat efficiency with a funding rate of up to 40% of the eligible investment costs.
The maximum funding amount is EUR 10 million per applicant or project.