Projects eligible for aid and maximum amount of aid

Typical projects and aid in 2022

Investments in renewable energy in 2022 (conventional technology)
 Heating plant projects (wood-based fuels)  10%
 Heat pump projects  15%*
 Solar heating projects  20%
 Landfill gas projects  15%
 Small-scale wind power projects  20%
 Small-scale CHP projects**  15%
 Solar power projects           15%
 Biogas projects  25%
 Renewable energy audits in the municipal sector  50%

* Excluding waste heat recovery projects, which fall under percentages applied to energy saving projects.

**Small-scale CHP project refers to a plant with an electrical output of less than 1MWe.

Energy aid is used to promote the introduction of new energy technologies in particular. Augmented aid (of 5 percentage points) may be granted on a case-by-case basis to projects involving new technology. On special grounds, higher augmented aid may also be granted for new technologies if this can be justified by the risk caused by the introduction of new technology and the related profitability review. In large-scale demonstration projects, in particular, the need for augmented aid will be assessed on a case-by-case basis. 

Aid is not granted to projects in new construction projects (with the exception of new technology, and a small-scale wind power and solar power projects). 

Projects implemented in connection to farms may be granted aid only if at least 80% of the energy generated is used outside the farm. 

Waste incineration plants or other incineration plants where waste-based fuels account for a large part of fuels used are not eligible for support.

Heat generation

Heat generation projects with an output exceeding 1 MW are not eligible for aid unless they involve new technology.

Aid is not granted to heat generation projects if the project outcome is a complete shift from district heating to separate heat generation. The amount of heat that subsequent to the investment is no longer a part of the district heating system will also affect the consideration of aid.

Aid is only granted to heating plants that solely use renewable energy sources (excluding start-up fuel and minor peak load use).

Heat pumps with a capacity exceeding 1 MW may only be subsidised in the case of a new technology project or a project connected to a low temperature heating network.

Purchases of electric boilers are only eligible for aid if the boiler itself uses new technology.

Electricity generation

Electricity generation projects with an output exceeding 5 MW are not eligible for aid, with the exception of projects involving new technology. In case of projects with an output over 1 MW, the applicant must present a long-term electricity sales contract or otherwise indicate a credible long-term buyer of electricity.

Hydropower projects are excluded from aid.

Electric battery projects are eligible for aid only if they involve investments in renewable energy production capacity or machinery and equipment improving energy efficiency. The maximum costs involving batteries in the project may not exceed 50% of the eligible total costs of the project.

Fuel production

Aid is not granted to 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).

Projects related to fuel distribution may be granted aid only in connection with industrial plant projects. Aid may be granted only to one distribution station located in the vicinity of the production site.

In case of biofuel projects, aid may be granted only to biofuel plant projects that do not use saw timber or pulpwood suitable for processing.

In case of biofuel projects, the applicant must submit a plan for further processing and use of digestate.

Investments in energy savings and energy efficiency in 2022 (conventional technology)

Studies:

  • 50% of energy audits in the municipal sector and in micro, small and medium-sized enterprises in connection with energy efficiency agreements;
  • 40% of other energy audits, analyses and studies.

Investment projects:

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

Aid may also be granted to companies and municipalities that have not signed an energy efficiency agreement if the project involves new technology.

Within investments in energy efficiency, heat pumps with a capacity exceeding 1 MW may only be subsidised in the case of a new technology project or a project connected to a low temperature heating network.

In the case where surplus heat is used as an energy source for a heat pump, heat pumps with a capacity of no more than 5 MW can receive aid in conventional technology projects. In terms of new technology, heat pump projects exceeding the capacity of 5 MW are also eligible for aid. 

For large companies, the maximum aid level is 30% for new technology projects as well.

When an ESCO is used, the minimum requirements are guaranteed energy savings of at least 50% and verified savings of at least 80% of the total savings in euros during the reference period.

Aid is not granted to flue gas scrubbers or related heat recovery investments if they concern companies participating emission trading system or heating plants where heat output exceeds 10 MW.

Lighting projects involving conventional and established technology are not eligible for aid.

Aid is not granted to building insulation, doors or lids of refrigeration cabinets or devices or similar solutions.

Aid is not granted to energy efficiency projects in new construction projects (with the exception of new technology projects).

General

New technology refers to new kinds of solutions that have not yet been experimented with widely in Finland. Typically, this means the first demonstration plant or plants. In comparison with similar projects based on conventional technologies, additional costs and risks are usually related to the introduction of new technologies.

The investment cost of projects eligible for aid must be at least EUR 10,000.

The market value of guarantees of origin will be taken into account administratively in the level of aid.