Subsidy (National Fund for Environmental Protection and Water Management - Prosumer)

Updated: 14.02.2017

Author: Michał Gulczyński

The National Fund for Environmental Protection and Water Management (NFOŚiGW) grants low interests loans together with subsidies to support the purchase and installation of small and micro-RES installations for the needs of residential single-family or multi-family houses (7.5 Priority Programme Prosumer). There are two different schemes – one is designed for local government units or their compounds and is governed by the NFOŚiGW, the other one which addresses private persons, homeowner associations and housing cooperatives is governed by a bank. 

The duration of the scheme is 2015-2023 (4 Priority Programme  Prosumer). 

Eligible technologies

Heat pumps (air-water and water-water), biomass and solar thermal installations intended for residential buildings located within the beneficent local government unit are eligible (7.5 No 1 Priority Programme Prosumer).

Aerothermal energy

Heat pumps with a capacity of up to 300 kWt are eligible (7.5 No 2 b) Priority Programme Prosumer).

Hydrothermal energy

Heat pumps with a capacity of up to 300 kWt are eligible (7.5 No 2 b) Priority Programme Prosumer).

Biomass

Biomass installations with a capacity of up to 300 kWt are eligible (7.5 No 2 a) Priority Programme Prosumer).

As biomass are understood solid substances of plant origin that are biodegradable, derived from the products, waste and residues from agriculture and forestry (except for full value wood) and industries related and not full value grains (Annex 3 II 1 Priority Programme Prosumer).

Biomass installations in urban areas of more than 10 000 inhabitants, and in spa areas are excluded from support (Annex 3 II 1 Priority Programme Prosumer).

Solar thermal energy

Solar thermal installations with a capacity of up to 300 kWt are eligible (7.5 No 2 c) Priority Programme Prosumer).

Eligibility covers the purchase and installation of solar collectors for the supply of hot water or heat in buildings used for residential purposes (Annex 3 II 3 Priority Programme Prosumer). 

Compulsory part of the installation is a heat meter installed in the solar collector loop, which allows for the local presentation of data (Annex 3 II 3 Priority Programme Prosumer).

Amount

The budget of the programme for the timeframe 2015-2022 is: 
  • for subsidies: PLN 249.8 million (€ 56.87 m.)
  • for loans: PLN 467.2 million (€ 106.36 m.)
(3 Priority Programme Prosumer)
Taken together, the amount of a loan and the subsidy granted may cover up to 100% of the eligible costs and must be more than PLN 200,000 (€ 45,530 ) (7.2.1 and 7.3.1 Priority Programme Prosumer).
The interest rate of the loan is 1%. The maximum duration of loan support is 15 years. The investment must be finalised within 24 months from the first loan payment (NFOŚiGW governed) or 18 months from the date of the loan agreement (bank governed) (7.3.3, 7.3.5, 7.3.6 and 7.3.8 Priority Programme Prosumer).
The subsidy shall cover up to 15% of the installation costs of biomass and solar collectors and up to 30% for photovoltaic, wind energy and micro-cogeneration installations. However in the years 2015-2016, in the first case up to 20% and in the latter up to 40% (7.2.1b Priority Programme Prosumer).
Maximum eligible investment costs for residential buildings in case of installations using only 1 energy source:
  • PLN 100,000 (€ 22,765) for private persons, except for biogas micro co-generation installations
  • PLN 300,000 (€ 68,296) for homeowner associations or housing cooperatives
  • PLN 500,000 (€ 113,826) in case of biogas micro co-generation installations
Maximum eligible investment costs for residential buildings in case of installations using at least 2 energy source:
  • PLN 150,000 (€ 34,146) for private persons, except for biogas micro co-generation installations
  • PLN 450,000 (€ 102,440) for homeowner associations or housing cooperatives
  • PLN 500,000 (€ 113,826) in case of biogas micro co-generation installations
(7.2.4 and 7.2.5 Priority Programme Prosumer).

Addressees

For the support governed by the Fund: local government units or their compounds (7.4 Priority Programme Prosumer).

For the support governed by the bank cooperating with the Fund: natural persons,  having the right to dispose of a single-family residential building, existing or under construction; and homeowner association or housing cooperative managing multi-family residential buildings (7.4 Priority Programme Prosumer 4b).

Procedure

Process flow

The investor submits an application for a loan and for a subsidy to the National Fund for Environmental Protection and Water Management or to the bank, cooperating with the Fund.

Applications for funding in the form of loans and grants will be considered on a continuous basis.

Competent authority

National Fund for Environmental Protection and Water Management

Distribution of costs

Consumers

The costs of the subsidy scheme are borne by the final consumers of electricity.

Distribution mechanism

The means provided by the National Fund to promote renewable energy are made up of compensation and penalty fees paid by electricity producers and suppliers that have failed to meet their quota obligations. The costs of these fees are passed on to the end-users (art. 401 par. 7 no. 4 in conjunction with art. 401c par. 5 Environmental Protection Act).

Poland

Further information

Basic information on legal sources