Projects eligible for aid and maximum amount of aid

Investment projects can receive energy aid for up to 30% of the expenditure eligible for aid and investigation projects up to 40%.

Energy aid for an investment project can be increased by ten percentage points to the extent the project contains new technology. Energy aid for an investigation project can be increased by ten percentage points when the aid is granted to a local authority or a small or medium-sized enterprise referred to in the Commission Recommendation 2003/361/EC concerning the definition of micro, small and medium-sized enterprises.

Typical projects and aid in 2018

Investments in renewable energy in 2018 (conventional technology)

Heating plant projects (wood-based fuels)

10–15%

Heat pump projects

15%*

Solar heating projects

20%

Small-scale hydropower projects

15–20 %

Landfill gas projects

15–20%

Small-scale wind power projects

20–25 %

Solar energy projects

25%

Biogas projects

20–30 %

Renewable energy audit costs in the municipal sector

50%

* Excluding waste heat recovery projects, which fall under energy savings related aid percentages.

Projects with an output exceeding 1 MW can be granted support for extraordinary investments costs only. The amount of the extraordinary investment costs is determined by comparing the project to a project using fossil energy sources that would have been feasible to carry out without aid.

Projects concerning wind power, biogas, wood fuel, solar power and wave power are eligible for energy aid only if the project is not eligible for the feed-in tariff system referred to in sections 9–11 of the Act on Production Subsidy for Electricity Produced from Renewable Energy Sources (1396/2010) or the competitive tendering referred to in section 30 or if it does not comply with the annual production obligation referred to in section 33, subsection 1, paragraph 6, subparagraph 2. Projects containing new technology are eligible for energy aid on the grounds of new technology.

Aid will not be granted to:

  • heating plants where heat output exceeds 10 MW or less than 70% of fuels used come from renewable energy sources;
  • heat generation projects if the project outcome is a shift from district heating to separate heat generation;
  • projects in new construction projects (with the exception of new technology and solar energy projects);
  • energy reserves (with the exception of projects that are part of a larger whole and where the share of energy reserves does not exceed 50% of the total costs);
  • projects implemented in connection to farms, unless at least 80% of the energy generated is used outside the farm;
  • procurement of wood-based and recycled fuel production equipment, including chippers, crushers, wood chip containers and other equipment (with the exception of new technology projects);
  • investments related to fuel distribution (with the exception of industrial plant investments);
  • waste incineration plant projects;
  • projects where the expenditure eligible for aid is below EUR 10,000.

Investments in energy savings and energy efficiency in 2018 (conventional technology)

Investigation projects:

  • 50% of energy audits in the municipal sector and in micro, small and medium-sized enterprises in connection with energy performance contracts;
  • 40% of other energy audits, analyses and investigation projects.

Investment projects:

  • 20% for companies and organisations that have signed an energy performance contract;
  • 25% when an energy service company (ESCO) is used in the above;
  • 15% for companies and organisations that have not signed an energy performance contract but use an ESCO.

Augmented aid (20–40%) is granted on a case-by-case basis for projects involving new technology and even for companies and local authorities that have not signed an energy performance contract.   

Large enterprises can be granted energy aid for up to 30% of the eligible costs.

When an ESCO is used, the minimum requirements are guaranteed energy savings of at least 70% and verified savings of at least 60% of the total savings in euros during the reference period.  

Aid will not be granted to:

  • fire gas washers or related heat recovery investments if they concern emission trading institutions or heating plants where heat output exceeds 10 MW;
  • lighting projects involving conventional and established technology:
  • building insulation, doors or lids of refrigeration cabinets or devices or similar solutions;
  • energy performance projects in new construction projects (with the exception of new technology);
  • projects where the expenditure eligible for aid is below EUR 10,000.

Investment projects that promote energy saving and more efficient use of energy include

  • projects that concern conventional technology and are related to the energy efficiency agreement scheme
  • projects that concern new technology, meaning technical or other solutions that have previously not been commercially applied in Finland
  • ESCO projects.

For example, the following kinds of investments in the use of renewable energy are eligible for support:

  • small heating plants
  • small electricity production projects
  • biofuel production projects
  • demonstration projects concerning new technology.

Aid can also be granted to the following types of studies concerning energy saving, more efficient energy use and the use of renewable energy:

  • energy audits
  • energy analyses.

Projects eligible for aid do not include conventional studies and examinations concerning the establishment, expansion, profitability, development, planning, marketing or background of business activities. As a rule, energy support is not granted to projects covered by the Emissions Trading Act (311/2011).