Subsidy (Investment Support)

Updated: 11.01.2019

Author: Tim Sternkopf

In the framework of the Market Incentive Programme (MAP) BAFA provides investment support for heat produced in existing buildings from solar, biomass and geothermal energy.

Eligible technologies

Investment support (BAFA) is given for heat produced in existing buildings. Installations in new buildings are only eligible if process heat is used. The investment support is divided into basic support, bonus support and innovation support. 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. VII).

Biomass

  • The construction or further extension of biomass-installations for thermal usage is being supported for: Installations with automatic feeding for the burning of solid biomass for thermal usage with a nominal heat output between 5 and 100 kW (Guidelines for the support of RES-H, Art. IV.2.1.)
  • Low emission logwood boilers with a nominal heat output between 5 and 100 kW (Scheitholzvergaserkessel) (Guidelines for the support of RES-H, Art. IV.2.1.)
  • Boiler for the combustion of biomass pellets and wood chips (Guidelines for the support of RES-H, Art. IV.2.1.)
  • Pellet stoves with water chamber (Guidelines for the support of RES-H, Art. IV.2.1.)
  • Combination boilers for the combustion of biomass pellets, wood chips, firewood (Guidelines for the support of RES-H, Art. IV.2.1.)
  • Low emission logwood boilers (Guidelines for the support of RES-H, Art. IV.2.1.)

More detailed technical requirements and standards are laid down in Art. IV.2.4. (Guidelines for the support of RES-H).

Geothermal energy

Efficient heat pumps up to and including 100 kW/nominal heat output.

More detailed technical requirements and standards are laid down in Art. IV.3.1 and Art. IV.3.4. of the Guidelines for the support of RES-H.

Solar thermal energy

Eligible technologies are those supporting the construction or further extension of solar collectors for thermal usage having one of the following purposes:

  • Water heating
  • Space heating
  • Combined water and space heating
  • Solar cooling
  • Feeding heating/cooling energy into the respective grid
  • Supply of process heat

under the condition of fulfilling the technical requirements and standards laid down under Art. IV.1.4. and Art. IV.1.5. for Innovation technologies of the Guidelines for the support of RES-H. 

Aerothermal energy

Efficient aerothermal heat pumps up to and including 40 kW/nominal heat output with a minimum support of EUR 1,500 for performance-controlled monovalent heat pumps and EUR 1,300 for other aerothermal heat pumps (Guidelines for the support of RES-H, Art. IV.3.2.1.1.). Air and air-heating pumps, which directly transfer the produced heat into the air are not supported (Guidelines for the support of RES-H, Art. V.3.1.).

More detailed technical requirements and standards are laid down in Art. IV.3.1 and Art. IV.3.4. of the Guidelines for the support of RES-H.

Hydrothermal energy

Efficient hydrothermal heat pumps up to and including 100 kW/nominal heat output with a minimum support of EUR 4,500 for sorption heat pumps and EUR 4,000 for other hydrothermal heat pumps (Guidelines for the support of RES-H, Art. IV.3.2.1.2.).

More detailed technical requirements and standards are laid down in Art. IV.3.1 and Art. IV.3.4. of the Guidelines for the support of RES-H.

Amount

Solar thermal:

  • Basic support (Guidelines for the support of RES-H Art. IV.1.2.1):
    • solar collectors exclusively for water heating:
      • new installations with a gross collector area between 3 and 40m2 EUR 50/m2 (minimum support EUR 500)
      • expansion of already commissioned installations of at least 4 to 40 m2 gross collector area 50/m2 (minimum support EUR 500)
    • all other solar collectors:
      • new installations with a gross collector area up to 40m2 EUR 140/m2 (minimum support EUR 2,000)
      • expansion of already commissioned installations of at least 4 to 40m2 gross collector area EUR 50/m2
  • Bonus support (Guidelines for the support of RES-H Art. IV.1.2.2.):
  • Innovation support (Guidelines for the support of RES-H Art. IV.1.3.)
    • solar collectors exclusively for water heating:
      • new installations with a gross collector area between 20 and 100m2 EUR 100/m2 (EUR 75 for new buildings)
    • all other solar collectors:
      • new installations with a gross collector area between 20 and 200m2 EUR 100/m2 (EUR 150 for new buildings)
    • Big collectors can be alternatively financed depending on their output (Guidelines for the support of RES-H Art. IV.1.3.1.2.)
    • Some types of big collectors can be also granted a repayment grant through the KfW Premium Programme (Guidelines for the support of RES-H Art. V.5.)
Biomass:

  • Basic support (Guidelines for the support of RES-H Art. IV.2.2.1):
    • Pellet installations
      • EUR 80/kW nominal heat output for the construction of an installation with automatic feeding, power and combustion control, and automatic ignition for the combustion of biomass pellets (or combination boilers)
      • However:
        • Min. EUR 2,000 for pellets stoves with water chamber
        • Min. EUR 3,000 for pellet boilers
        • Min. EUR 3,500 for pellet boilers with newly erected buffer tank with a volume of at least 30 l / kW nominal heat output
    • Wood chips installation
      • A lump sum of EUR 3,500 pro unit for the construction of an installation with automatic feeding, power and combustion control, and automatic ignition
    • Log wood installation
      • A lump sum of EUR 2,000 per unit for the construction of emission-poor log wood installations
  • Bonus support (Guidelines for the support of RES-H Art.IV.2.2.2.):
    • A combination bonus of EUR 500 can be granted:
      • in the case of simultaneously erecting also an eligible solar collector or an efficient heat pump
      • when connecting the biomass installation to a heating network
    • Further single optimization measures are available (Guidelines for the support of RES-H Art. IV.2.2.2.2.)
  • Innovation support (Guidelines for the support of RES-H Art. IV.2.3.)
    • Installations with condensing technologies
      • In existing buildings
        • EUR 4,500 for boilers
        • EUR 5,250 for boilers with a new erected buffer tank with a volume of at least 30 l/kW nominal heat output
      • In new buildings
        • EUR 3,000 for boilers
        • EUR 3,500 for boilers with a new erected buffer tank with a volume of at least 30 l/kW nominal heat output
    • Installations with secondary particle separation
      • In existing buildings
        • EUR 3,000 for pellet stoves with water chamber
        • EUR 4,500 for pellet boilers
        • EUR 5,250 for pellet boilers with a new erected buffer tank with a volume of at least 30 l/kW nominal heat output
        • EUR 5,250 for wood chips
        • EUR 3,000 for log wood
      • In new buildings
        • EUR 2,000 for pellet stoves with water chamber
        • EUR 3,000 for pellet boilers
        • EUR 3,500 for pellet boilers with a new erected buffer tank with a volume of at least 30 l/kW nominal heat output
        • EUR 3,500 for wood chips
        • EUR 2,000 for log wood
      • For retrofitting a biomass installation with secondary particle separation technology a lump sum of EUR 750 may be granted
    • Supply of process heat
      • The erection of a new biomass installation mainly for the supply of process heat can be granted support up to 30% of the net investment costs until a maximum of EUR 40,000.
  • All the mentioned support grants are available under the condition of fulfilling the technical requirements laid down in Art. IV.2.4. and Art. IV.2.5. of the Guidelines for the support of RES-H.
Heat pumps:

  • Basic support (Guidelines for the support of RES-H Art. IV:3.2.1.):
    • Electrical heat pumps (heat source: air)
      • EUR 40/ kW of nominal heat output up to
        • At least EUR 1,500 for performance-controlled installations and/or monovalent heat pumps
        • At least of EUR 1,300 for all others installations
    • Electrical heat pumps (heat source: geothermal energy, water), sorption and gas-motoric heat pumps
      • EUR 100/ kW of nominal heat output up to
        • At least EUR 4,500 for the erection of electrical heat pumps based on geothermal energy, as long as an associated earth probe drilling is also being executed
        • At least EUR 4,500 for each sorption and gas-motoric heat pump installation
        • At least EUR 4,000 for all other electrical pumps with geothermal or water heat sources
  • Bonus support (Guidelines for the support of RES-H Art. IV:3.2.2.):
    • Load management capacity:
      • EUR 500 as long as these further requirements are fulfilled: concomitant erection of a buffer tank and complying with the “Smart Grid Ready” certificate requirements
    • A combination bonus
      • of EUR 500 can be granted:
        • in the case of simultaneously erecting also an eligible solar collector or biomass installation
        • when connecting the heat pump installation to a heating network
        • in the case of simultaneously erecting an eligible solar collector with a gross collector area of at least 7m2, as long as this is contributing as a heat source for the heat pump
    • Further single optimization measures are available (Guidelines for the support of RES-H Art. IV.3.2.2.23.)
  • Innovation support (Guidelines for the support of RES-H Art. IV.3.3.):
    • Granted to heat pumps in new and existing buildings with a nominal heat output of at least 100 kW.
    • For heat pumps with high annual COP or improved system efficiency in existing buildings can be increased up to 50% over the amount set in Art. IV.3.2.1.
    • Supply of process heat
      • The erection of a new heat pump installation mainly for the supply of process heat can be granted support up to 30% of the net investment costs until a maximum of EUR 60,000. 

Addressees

Private persons, freelancers, small and medium size companies, municipalities/local authorities, non-profit organisations, (Guidelines for the support of RES-H Art. III). The applicants can be owners, tenants, leaseholders or contractors of properties. Tenants, leaseholder or contractors need however a written authorisation from the owner in order to apply for a financial support (Guidelines for the support of RES-H Art. III.2.). 

Procedure

Process flow

All application should include the information if for the same eligible costs other grant application have been submitted (e.g. in a programme of the states; if the installation is also entitled to payments according to EEG 2017 or KWKG) (Guidelines for the support of RES-H Art.VIII.1.). 

  • One-step procedures (Guidelines for the support of RES-H Art. VIII.1.1.1.)
    • Applications from private persons and
    • Applications from companies and freelancers regarding optimisations of installations already supported through these scheme
    • Since January 2018, all applications need to be sent in advance before project developers placed an order for the construction of an installation.
    • Applications shall include the proof of operation of the installation or plant (day/month/year), the detailed and complete invoices, the proof of installed collector area or installed rated thermal input and other specific proofs depending on the technology (specified in the guidelines cf. Section on supported technologies)
    • Application forms can be retrieved from BAFA and need to be signed b)
  • Two-step procedures (Guidelines for the support of RES-H Art. VIII.1.1.2.)
    • Application from companies and freelancers (excepted optimisation proceedings)
    • Application for the support of proceedings for the visualisation of the output from renewables
    • Applications for innovation support
  • Basic and bonus support (Guidelines for the support of RES-H Art. 13.1 a))
    • Applications shall be sent at the latest 6 months after the plant started operating (the date of receipt at BAFA matters)
    • Application forms can be retrieved from BAFA and need to be signed
    • The support is paid after the examination of the documents and can be postponed to the next budgetary year
  • Innovation support (Guidelines for the support of RES-H Art. 13.1 b))
    • Applications need be filed before starting the project. The project launch is defined as the signing of a contract on the delivery of the plant or measure (Guidelines for the support of RES-H Art. 5.1.1 & 5.1.3). As a proof of operation, documents required for basic support need to be sent to BAFA at the latest before the expiration of the official note of approval.

Competent authority

BAFA, BMU

Distribution of costs

State

The state via BAFA bears the costs.

Germany
Electricity
Heating & Cooling
Transport

Further information

Basic information on legal sources