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How to benefit from subsidies for more efficient industrial equipment and dedusting systems

Anyone planning to invest in a new industrial plant or dedusting technology in Germany, or to optimize an existing plant, has the opportunity to receive a considerable amount in subsidies. Subsidies of up to 40 % can be granted for our plants that are eligible for subsidies.

Germany’s Federal Office for Economic Affairs and Export Control (BAFA) and the investment and development bank Kreditanstalt für Wiederaufbau (KfW) offer a federal funding programme to increase energy efficiency in companies. The modules “Cross-sectional technologies” and “Energy-related optimization of plants and processes” offer subsidies that can cover up to 40 % of costs (up to a maximum of €200,000 and €10 million respectively). We would be happy to help you apply for subsidies and implement the measures. Click here to go directly to the subsidy application.

Who is eligible to apply?

Small and medium-sized enterprises with up to 250 employees can benefit from the 40 % investment subsidy. Annual sales may not exceed 50 million euros and annual balance sheet totals may not exceed 43 million euros.

Large companies that exceed the above thresholds may also apply. In this case, the subsidy rate is reduced by ten percentage points.

What are cross-sectional technologies?

Modul 1 promotes cross-sectional technologies. These include:

  • Electric motors and drives
  • Pumps for industrial and commercial use
  • Ventilators
  • Compressed air systems and the control systems governing them
  • Plants for waste heat utilization and/or heat recovery from wastewater
  • Insulation for industrial plants and/or plant components
  • Frequency converters

Who is eligible for funding?

Specific measures pertaining to “cross-sectional technologies” (Module 1) can be subsidized. These include the replacement or acquisition of highly efficient systems or aggregates with a net investment volume of at least 2,000 euros in cross-sectional technologies. Subsidies are only available for the above-mentioned cross-sectional technologies and not for the system into which they are integrated.

Subsidies can also flow into the “Energy-related optimization of plants and processes” (Module 4). This includes both the replacement and upgrade of cross-sectional technologies and the technical systems into which they are integrated. This applies as well to plant peripherals such as ducts and filters, for example.

Companies interested in applying will need an energy concept from an expert approved by BAFA. AML is happy to put you in touch.

How high are the subsidies?

The subsidy amount varies depending on the module. For “cross-sectional technologies” (specific measures), up to 40 % can be covered for small and medium-sized companies and 30 % for large companies. The maximum subsidy is 200,000 euros.

For the “Energy-related optimization of plants and processes”, 500 and/or 700 euros (SMEs) are available for each tonne of CO2 saved. Subsidies are limited to 30 or 40 % of the investment costs eligible to receive funding, up to a maximum of 10 million euros.

What does the application process entail?

Applying

Supply and service contracts may only be awarded once BAFA/KfW has approved the application and a subsidy notification has been received by BAFA - with the exception of planning and consulting services.

Review of the application

Is usually done based on manufacturer certificates and product datasheets and possibly through technical concepts approved by an expert.

Determination of the subsidy

Once an application is approved, the maximum subsidy amount is determined on the basis of the planned costs for the measure (for individual measures) and the CO2 savings. The subsidy is paid out once the system has been installed and proof of use has been verified.

Implementation deadline

The system must be installed and ready for operation within 24 months. The approval period begins with the date of the approval/when the subsidy notification is received by BAFA.