Loan (KfW Renewable Energy Programme Premium)

Updated: 11.01.2019

Author: Tim Sternkopf

In the framework of the Market Incentive Programme (MAP), KfW provides low-interest loans and grant repayment support (Tilgungszuschuss).

Eligible technologies

In the framework of the KfW Programme Renewable Energy – Premium, KfW provides low-interest loans with grant payback support for the development and expansion of heat installations. The installations need to supply heat or cold predominantly in Germany and have to be operating for at least 7 years (Guidelines for the support of RES-H Art. II.). A combination with other support schemes is possible, if not otherwise stated (Guidelines for the support of RES-H Art. VI.).

Biogas

Installations for the erection and/or further development of biogas pipes of at least 300 m: for biogas not purified to biomethane, as long as the biogas serves for the purification to natural gas quality, fuel or CHPs (Guidelines for the support of RES-H Art. V.7.).

Biomass

The following technologies are supported:

  • Installations with automatic feeding for the burning of solid biomass (such as logwood, wood chips, pellets, etc.) for thermal use >100 kW nominal heat output including (Guidelines for the support of RES-H Art. V.1.)
  • CHP with a nominal heat output between 100 kW and 2 MW, as long as the prescribed emissions values are met (Guidelines for the support of RES-H Art. V.1.3.).

More detailed technical requirements and standards are laid down in Art. V.1.4. (Guidelines for the support of RES-H).

Geothermal energy

The following technologies are supported both for heat production and for the combined heat and power production

  • Installations with a drilling depth >400 m, a temperature of the thermal fluid of at least 20°C and a thermal heat output of at least 0.3 MWth (Guidelines for the support of RES-H Art. V.2.)
  • Efficient heat pumps >100 kW nominal heat output (Leaflet KfW Programme Premium, p. 4)

Solar thermal energy

  • solar collectors with a gross collector area >40 m2 (Guidelines for the support of RES-H Art. V.5.1.)

More detailed technical requirements and standards are laid down in Art. V.5.2. (Guidelines for the support of RES-H).

Aerothermal energy

Efficient heat pumps up to 100 kW/nominal heat output (Leaflet KfW Programme Premium, p. 4)

Hydrothermal energy

Efficient heat pumps up to 100kW/nominal heat output (Leaflet KfW Programme Premium, p. 4)

Amount

Solar thermal (PV ≥ 40 m²):

  • size-related support (Guidelines for the support of RES-H Art. V.5.1.)
    • grant repayment of up to 30% of the eligible net investment cost for: water heating, room heating, solar cooling production, injection into a heating
    • grid grant repayment of up to 40% of the eligible net investment cost for: the injection into a heating grid with at least 4 costumers
    • grant repayment of up to 50% of the eligible net investment cost for: solar process heating
  • output-related support (Guidelines for the support of RES-H Art. V.5.1.4.)
Biomass:
  • Grant repayment for solid biomass installation exclusively for thermal usage up to EUR 20/kW nominal heat output up to a maximum of EUR 50,000
  • Additional bonuses:
    • For low emissions (EUR 20/kW nominal heat output, for emissions up to 15mg/m3)
    • For the erection of a buffer tank (additional EUR 10/kW nominal heat output, for tanks with a volume bigger than 30l/kW
  • Basis and additional support can be combined up to EUR 100,000. (Leaflet KfW Programme Premium, p. 8)
Geothermal: 
  • Projects exclusively for heating purposes
    • Installation grant repayment
      • EUR 200/ kW nominal heat output up to EUR 2 million
    • Deep drilling grant repayment
      • EUR 375 / m vertical depth for a drilling depth between 400 m and 1000 m under the top ground surface
      • EUR 500 / m vertical depth for a drilling depth between 1000 m and 2500 m under the top ground surface
      • EUR 750 / m vertical depth for a drilling depth > 2000 m under the top ground surface
      • A deep drilling can be supported with max. EUR 2,500,000 million; maximum 4 drillings/project. Exploration drillings are not eligible.
    • Additional expenses
      • Grant repayments up to max. 50% of the documented additional net expenses/ drilling, however only up to 50% of the primary planned costs totalling max. EUR 1,25 million/drilling and EUR 5 million/ project
  • Projects for combined heat and power
    • Installation grant repayment
      • Grants are available beginning with a nominal heat output of at least 4000 kWth and a gross electrical output Pel in kWel smaller than the demand-sided heat installed power Qth in kWth
      • Grant repayments: (1-(Pel/Qth)) x 200€ for each kW of nominal heat output. Maximum of EUR 1,000,000 per project
    • Drilling grant repayment
    • Additional expenses
  • Deep hole drilling
    • Grant repayment: EUR 375 per meter vertical depth (400-1000m drilling depth), EUR 500 per meter vertical depth (1000 – 2500 m drilling depth). Maximum support is EUR 975,000 per drilling with a maximum support of four drillings per project amounting maximum of EUR 3,900,000 per project
  • Additional expenses due to drilling ≥ 400 m
    • Grant repayments are based on a proof of additional expenses and can cover up to 50 % of additional expenses and 50% of originally planned costs. The maximum support is EUR 1,250,000 for an eligible drilling and a maximum of EUR 5,000,000 for a project
Biogas pipes:
  • up to 30% of the net investment costs. (Leaflet KfW Programme Premium, p. 9)
Heat pumps:
  • Grant repayment EUR 80 per kW heat output, at least EUR 10,000 and max. EUR 50,000 (Leaflet KfW Programme Premium, p.9)

Addressees

Private persons, freelancer, small and medium size companies, municipalities/local authorities, non-profit organisations. For an applicant to be eligible he must be owner, tenant or leaseholder of the property the installation is to be erected. Tenants, leaseholder, contractors need an additional written authorization from the owners. (Guidelines for the support of RES-H Art. III.)

Procedure

Process flow

  • Application: The application has to be filed before the project is started. The project begin is defined as the signing of a contract on the delivery of the installation or measure (Guidelines for the support of RES-H VIII 1.2.).
  • Additional approval: For grant repayment support higher than EUR 250,000, an approval by BMU (Ministry of the Environment) is required prior to granting the support (Guidelines for the support of RES-H Art. VIII.1.2.).

Competent authority

KfW, BMU

Distribution of costs

State

KfW Bankengruppe bears the costs of offering low-interest loans and grant repayment support.

Germany

Further information