Federal Funding for Energy and Resource Efficiency in the Economy (Loan) – Promotion of Process Heat from Renewable Energies (Module 2)
KfW loan for companies to promote process heat generation from renewable energies: solar collectors, heat pumps, geothermal energy, and biomass CHP. Up to 60% repayment subsidy, loan up to €100 million, applications until 31.12.2028.
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Grant criteria
Funding objective
Promotion of the procurement and installation of heat generation systems for the provision of process heat from renewable energies in companies, in order to increase energy and resource efficiency and reduce greenhouse gas emissions.
Eligible expenses
- Procurement of solar collector systems
- Procurement of heat pumps
- Development of geothermal energy (drilling)
- Biomass combustion systems
- CHP systems
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Non-eligible expenses
- Operating costs
- Own contributions
- Insurance costs
- Approval costs
- Building measures exceeding incidental costs
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Eligible to apply
- Companies
- Non-profit Organizations
- Public Institutions
Funding requirements
- Permanent establishment in Germany
- Application submission before the start of the measure
- Efficiency proof according to Annex TMA Module 2
- Solar Keymark certificate for solar collectors
- Electric energy from renewable sources for heat pumps
Documents required for application
- Data collection sheet (form number 600 000 4395)
- Hydraulic system diagram
- Offer from the heat generators
- Manufacturer declarations for heat pumps and biomass systems
- Product data sheet/material data sheet
- Solar Keymark certificate
- Waiver declaration EEG/KWKG
- Savings concept
Evaluation criteria
- Amount of GHG reduction potential
- Economic efficiency and payback period
- Technology efficiency
- Environmental and climate contribution
Description
The federal funding program for energy and resource efficiency in the economy (loan), Module 2 "Process Heat from Renewable Energies," supports companies, non-profit organizations, and public institutions with operations in Germany in the procurement and implementation of highly efficient heat generation systems. Funding is provided for solar collectors with Solar Keymark, heat pumps, systems for exploiting shallow and deep geothermal energy, as well as biomass CHP plants. The low-interest loan can amount to up to €100 million, supplemented by a repayment grant of up to 60% of the investment costs. Project applications are possible until December 31, 2028; the approval period covers up to 36 months from the date of commitment. Investments in procurement, construction, suitable heat storage, and necessary measurement, recording, and installation costs are funded to cover process heat demand from renewable sources and demonstrably reduce greenhouse gas emissions.
The funding program places great emphasis on technical evidence: before application submission, efficiency proofs according to Annex TMA Module 2, hydraulic system schematics, and quotations must be submitted. For heat pumps, the use of 100% green electricity is a prerequisite; geothermal projects often require feasibility studies, and biomass systems must comply with emission regulations. Annual monitoring of heat quantities is mandatory. The funding is aimed at domestic and foreign commercial enterprises, self-employed professionals, municipal and state enterprises, as well as non-profit applicants, provided they are economically active. This program combines climate protection and resource efficiency to sustainably decarbonize production processes and reduce energy costs in the long term.
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