Loan and Subsidy (BMU – Innovation Programme)
Updated: 11.01.2019
Author: Tim Sternkopf
The BMU Innovation Programme supports large installations with the potential to reduce environmental impact. These installations need to be innovative and should act as pilot projects.
Eligible technologies
All installations with innovative technologies are eligible for support. However, the support scheme cannot be combined with support from the EEG for installations producing electricity.
| Wind energy | Eligible. |
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| Solar energy | Eligible. |
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| Biogas | Eligible. |
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| Biomass | Eligible. |
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| Geothermal energy | Eligible. |
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| Hydro-power | Eligible. |
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Amount
The support scheme offers low-interest loans for up to 70 % of total investment costs or a subsidy of up to 30 % of total investment costs. The long-term and low-interest loan has no cap and needs to be repaid within a maximum period of up to 30 years including a maximum 5- year repayment-free start-up period. The fixed interest rate is renegotiated after 10 years. Moreover, a commitment fee of 0.25% per month is charged.
Addressees
Foreign and domestic commercial companies, natural persons and companies held by municipalities. SMEs are supported with priority.
Procedure
Process flow | In a first step project developers need to hand in a project outline.
After a check by the KfW, UBA and, if necessary, the BMU, a feedback and all necessary application forms will be sent back to the project bidder. Construction must not begin before the approval of the support. |
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Competent authority | KfW loans are administered and disbursed by regular banks. |
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Distribution of costs
| State | KfW Bankengruppe bears the costs of offering low-interest loans. |
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