Subsidy I (Environmental Assistance in Austria - UFI)

Updated: 18.12.2018

Author: Tim Sternkopf

The Environmental Aid Act (UFG) provides for the general support of schemes to protect the environment. The UFG is divided into several fields of action; incentives to use energy from RES in the heating and cooling sector are provided in the Environmental Assistance in Austria (UFI) field of action. (§ 23 para. 1 UFG in conjunction with § 4 para. 1 Guidelines 2015). An annual budget of maximum € 130 million between 2009-2021 is granted for different purposes of environmental assistance by the Austrian Federal Ministry for Sustainability and Tourism (BMNT) (§ 6 para. 2f subpara. 1 UFG). For 2017-2021 the annual budget stands at € 80 million.

As part of the environmental assistance, promoting small-scale RES heating and cooling is applied at a federal level carried out through the national corporate environmental support programme (UFI – betriebliche Umweltförderung im Inland). There are special investment incentives for solar thermal installations, heat pumps, geothermal energy and biomass heating plants, especially for businesses. All projects eligible for support are listed on the website of the settlement agency Kommunalkredit Public Consulting GmbH (KPC):

https://www.umweltfoerderung.at/alle-foerderungen.html

On the other hand, the 9 federal states offer different measures for the enhancement of energy efficiency or the increased use of renewable energy in the area of advisory services or also investment subsidies. Depending on the project, either the subsidy is granted additionally to the UFI or the grants are mutually exclusive. Especially concerning support schemes for private individuals in the scope of housing subsidies or for farmers in the agricultural sector, guidelines and eligibility criteria might vary significantly. One of the most outstanding federal states is Styria, granting high amounts of subsidies for solar thermal installations or biomass heating plants. The federal state government is the authority responsible for subsidies granted on the federal state level.

Therefore, the final amount of subsidies depends strongly on where the applicant resides. Different offers of the federal states (for businesses) are listed on the following website (in German):

https://www.wko.at/Content.Node/Service/Umwelt-und-Energie/Nachhaltigkeit-und-Umweltmanagement/Energie-und-Umweltfoerderung/Betriebliche_Umweltfoerderung_in_den_Bundeslaendern.html

In principle, the investment grants for measures supporting the use of energy from renewable sources in the heating and cooling sector differ according to technology. Usually, a flat rate of de minimis support is calculated. “De minimis” allows for aid up to € 200,000 without notifying to the European Commission to be provided from public funds over a period of three years. Another option for support is the ‘standard reimbursement rate’ which mostly amounts to 30 - 45% of the environment-related investment costs and can be increased through awards (sustainability and gas-cleaning awards, etc.) to a maximum of additional 10% (for medium-sized companies) or even 20% (for small-sized companies). In some cases, the application must be made before the beginning of the project and the environment-related investment costs must amount to a certain minimum sum (€ 10,000).

The granting of support requires that the applied measure (for investments > € 1 million: the whole operating system) corresponds to the current state of the art and constitutes a substantial relief to the environment (§ 5 Guidelines 2015).

Eligible technologies

In the UFI field of action, following technology groups are eligible for support of RE heating and cooling.

Aerothermal energy

Air heat pumps up to 400 kW

• Heat pump systems for operational purposes for heating, hot water supply • Heating systems need to be low-temperature (< 40 °C)

• Heat pumps for cooling purposes are explicitly not supported

Air heat pumps from 400 kW

• Heat pump systems for operational purposes for heating, hot water supply, for space cooling

• Heating systems need to be low-temperature (<40 °C)

• Heat pumps for cooling purposes are explicitly not supported

Hydrothermal energy

Water heat pumps up to 400 kW

• Heat pump systems for operational purposes for heating, hot water supply, for space cooling

• Heating systems need to be low-temperature (<40 °C)

• Heat pumps for cooling purposes are explicitly not supported

Water heat pumps from 400 kW

• Heat pump systems for operational purposes for heating, hot water supply, for space cooling

• Heating systems need to be low-temperature (<40 °C)

• Heat pumps for cooling purposes are explicitly not supported

Biomass

Individual biomass units up to 400 kW 

  • Automatically stocked biomass combustion plants or log wood boilers in central heating systems for operational purposes 
  • Additional costs (e.g. boiler house, wood chip silos, chipping machine etc.)

Individual biomass units from 400 kW 

  • Automatically stocked biomass combustion plants or log wood boilers in central heating systems for operational purposes 
  • Additional costs (e.g. boiler house, wood chip silos, chipping machine etc.)

Biomass CHP 

  • Power stations including automatically stocked biomass combustion plants (feeding, combustion plant, chimney) 
  • Boiler (steam boiler, thermal oil boiler) 
  • Power generation (steam turbine, block heat power plant) 
  • Building measures
  • Costs for implementing quality management systems

Geothermal energy

Geothermal energy

 

  • Building and plant costs exclusively for the use of geothermal energy.
  • This includes drilling, heat exchange and distribution grids, underground injection, cogeneration and the reuse of existing geothermal oil wells

Heat pumps up to 400 kW

 

  • Heat pump systems for operational purposes for heating, hot water supply, for space cooling
  • These include heat pumps, heat source systems, hydraulic installations, system regulation

Heat pumps from 400 kW

 

  • Heat pump systems for operational purposes for heating, hot water supply, for space cooling
  • These include heat pumps, heat source systems, hydraulic installations, system regulation

Solar thermal energy

Large solar installations 

  • Innovative solar thermal installations with a collector area between 100 and 2000 m² are eligible.

Thermal solar installations up to 100 m²

  • Solar installations for hot water supply or part solar space heating including casing, heat accumulators and distribution grids with a maximum collector area of 100 m²

Thermal solar installations from 100 m² 

  • Solar installations for hot water supply or part solar space heating including casing, heat accumulators and the provision of process heat with a collector area from 100 m²

Amount

Wood-fired heating < 50 kW (for private individuals only): • € 2,000 for a chopped wood or pellet heating installation to replace a fossil boiler • € 800 for a pellet or wood chip central heating unit to replace an old wood heating constructed before 2003 • € 500 for a pellet stove • Max. 35% of the investment costs Individual biomass units < 400 kW (for municipalities): • € 93 per kW (0-50 kW) • € 42 per kW (for every kW between 51-400) •Max. 30% of the investment costs • 12% cost sharing with relevant federal state Individual biomass units < 400 kW (for companies): • € 155 per kW (0-50 kW) • € 70 per kW (for every kW between 51-400) • + € 10 per kW for boilers with Austrian eco-labelling • + € 3/kW if combined with a solar thermal installation • Max. reimbursement rate: 30% Individual biomass units > 400 kW and (for companies): • Max. reimbursement rate: 35% Biomass CHP: • De minimis support:

  • Standard reimbursement rate: 10%
  • Awards: max. 10%

• Support over De minimis limit:

  • max. 25-30% of investment costs (holds true for every investment)

• Environment-related investment costs: minimum € 10,000

• Max. € 900 per ton of CO2 reduced

Geothermal energy:

• De minimis support:

  • Standard reimbursement rate: 25%

• Max. € 900 per ton of CO2 reduce

• Environment-related investment costs: minimum € 10,000

Heat pumps < 400 kW

• Water heat pumps: € 85 per kWth (0-80 kWth), € 45 for each additional kWth (81-399 kWth)

• Air heat pumps: € 70 per kWth (0-80 kWth), € 35 for each additional kWth (81-399 kWth)

• max. 30% of investment costs

Heat pumps > 400 kW

• Minimum investment of € 10,000

• De minimis support: max. 15%

• Annual savings in CO2 emissions: 4 t

Thermal solar installations < 100 m² (for municipalities)

• depending on the type of collector used:

  • € 90 per m2 for standard collectors
  • € 117 per m2 for vacuum collectors
  • € 75 per m2 for air collectors o Reimbursement max. 30% of investment costs

• Additional support:

  • € 6 per m2 for solar thermal installations with eco-label “Österreichisches Umweltzeichen”
  • € 6 per m2 for installations with parallel wood-fired heating installation Thermal solar installations < 100 m² (for companies)

• depending on the type of collector used:

o € 150 per m2 for standard collectors

o € 195 per m2 for vacuum collectors

o € 125 per m2 for air collectors

• max. 30% of investment costs

• Additional support:

  • € 10 per m2 for solar thermal installations with eco-label “Österreichisches Umweltzeichen”
  • € 10 per m2 for installations with parallel wood-fired heating installation
Thermal solar installations > 100 m² (for municipalities)

• De minimis support: max. 12%

• Max. € 900 per ton of CO2 reduced

• Environment-related investment costs: minimum € 10,000

Thermal solar installations > 100 m² (for companies)

• De minimis support: max. 20% • Support over De minimis limit: max. 40% • Environment-related investment costs: minimum € 10,000

District heating with biomass < 400 kW (for municipalities)

• € 42 kW (0-100 kW) and € 21 for every kW below 400 kW

• max. 30% of investment costs

• + € 3 per kW if combined with a solar thermal installation

District heating with biomass < 400 kW (for companies)

• € 70 kW (0-100 kW) and € 35 for every kW below 400 kW

• + € 5 per kW if combined with a solar thermal installation

• max. 30% of investment costs

District heating with biomass > 400 kW (for municipalities)

• € 675 per ton of CO2 reduction

• max. 15% of investment costs

• + € 3 per kW if combined with a solar thermal installation

Addressees

Support within UFI is directed primarily at natural or legal persons registered on the territory of Austria (§ 26 par. 1 UFG). The extent of the support/reimbursement might differ for companies, municipalities or private individuals.

Procedure

Process flow

Application: The grant application is submitted to the settlement agency Kommunalkredit Public Consulting GmbH (KPC).

Evaluation: The KPC assesses the application and forwards it to further evaluation to the Commission on matters of environmental assistance in Austria (§ 28 UFG).

Decision making: On the basis of the Commission’s recommendations, the Austrian Federal Ministry for Sustainability and Tourism (BMNT) decides on each application.

Conclusion of a contract: Following the Minister’s decision, the KPC signs a contract with the applicant and is responsible for its execution.

Competent authority

Responsible for the entire support scheme is the Austrian Federal Ministry for Sustainability and Tourism. The Kommunalkredit Public Consulting GmbH is entrusted as a settlement agency with the practical development of support programmes.

Distribution of costs

State

The UFI incentive scheme is financed from the budget of the Austrian Federal Ministry for Sustainability and Tourism. Until 2021, the funding under the UFI amounts to € 80 million per year (§ 6 para. 2f UFG).

Austria

Further information

Basic information on legal sources