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 if the project contains new technology. Energy aid for a study 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 2019

Investments in renewable energy in 2019 (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

15–20%

  • Small-scale CHP projects

15–20%

  • PV projects until 30 April 2019

              as of 1 May 2019

25%
20%

  • Biogas projects

20–30%

  • Renewable energy audit costs in the municipal sector

50%

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

Augmented aid (20–40%) may be granted on a case-by-case basis to projects involving new technology.

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

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

Waste incineration plants are not eligible for aid.

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

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 shift from district heating to separate heat generation.

In heating plant projects, renewable energy must account for at least 70% of fuel consumption.

Energy storage projects are eligible for aid only if they involve investments in renewable energy production capacity or machinery and equipment improving energy efficiency. Energy-storage-related costs of a project may not exceed 50% of the project’s total costs.

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 between 1 MW and 5 MW, the applicant must present a long-term PPA or otherwise indicate a long-term buyer of electricity.

In case of hydropower projects, the applicant must present a report of the environmental impacts of the project and on the need for fish ladders.

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 production site. Aid may be granted only to one distribution station located in the immediate vicinity of the production site.

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

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

Investments in energy savings and energy efficiency in 2019 (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%) may be granted on a case-by-case basis to projects involving new technology and even to 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 is not granted to flue gas scrubbers or related heat recovery investments if they concern emission trading plants 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 performance projects in new construction projects (with the exception of new technology projects).

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