Federal Funding for Energy and Resource Efficiency in Industry (Grant) – Promotion of Process Heat from Renewable Energies (Module 2)
Nationwide grant funding for companies for the procurement and installation of heat generators (solar collectors, heat pumps, geothermal and biomass systems, CHP) for process heat from renewable energies. Applications possible until 31.12.2028.
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Grant criteria
Funding objective
Promotion of investments in the procurement and installation of systems for the generation of process heat from renewable energies (solar collector systems, heat pumps, geothermal, biomass, and CHP systems) to increase energy and resource efficiency and reduce greenhouse gas emissions in the economy.
Eligible expenses
- Investment costs
- Ancillary costs for planning and installation
- Measuring and data acquisition equipment
- Manufacturer declarations
Non-eligible expenses
- Own contributions
- Construction measures outside the facility
- Research and development projects
Eligible to apply
- Companies
Funding requirements
- Permanent establishment or branch in Germany
- Predominant use of process heat (>50%)
- Application submission before the start of measures
Documents required for application
- Data collection sheet
- Hydraulic system diagram
- Product data sheet or manufacturer declaration
- Cost estimate/offer
Evaluation criteria
- Additional investment costs compared to the reference plant
- Annual GHG reduction potential
- Efficiency improvement of process heat supply
Description
Federal Funding for Energy and Resource Efficiency in Industry (Grant) – Module 2: Process Heat from Renewable Energies
Nationwide, the Federal Ministry for Economic Affairs and Energy supports investments in the procurement and installation of heat generators for the provision of process heat from renewable sources. Eligible applicants are companies from all sectors with a business location or branch in Germany, whose systems generate at least 50% process heat. Eligible technologies include solar collectors, heat pumps, geothermal and biomass systems, as well as combined heat and power systems. In addition to investment costs, ancillary costs for planning, installation, and measurement and data acquisition equipment are also funded. The funding rate ranges from 40% to 60% depending on company size (for biomass combustion systems 20% to 40%) of eligible investment costs, up to a maximum of €20 million per project. Applications must be submitted via the electronic BAFA portal by 31.12.2028 before the start of the measure.
Only projects that enable a significant reduction in greenhouse gas emissions after commissioning and where the use of process heat predominates on an annual average are funded. A prerequisite for eligibility is the submission of the application before the start of construction or assembly work. Application documents include, among others, a data collection sheet, a hydraulic system diagram, as well as offers or manufacturer declarations. The verified amount of heat must be documented over three years using a suitable meter. Professional planning and efficiency proofs (for example, coefficient of performance and quality factor for heat pumps, efficiency comparison for biomass boilers) are mandatory. The BAFA grant supports companies in increasing their energy and resource efficiency, expanding the use of renewable energies, and sustainably reducing their CO2 footprint.
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