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Clean energy for EU islands
  • Regulatory information
  • Heating & Cooling support

Loan and subsidy (KfW Renewable Energies - Premium)

  1. Abbreviated form of legal source(s)

    Renewable Energies - Premium

  2. Description of support scheme

    KfW supports larger installations that produce heating and cooling from renewable sources with loans and a repayment bonus. A repayment bonus is a reduction of the loan that has to me repaid and can be granted after the completion of work.

  3. Amount

    The loan can be granted for 100% of the investment costs eligible for this support and up to EUR 25 million with an interest starting at 1 % per year.
    The repayment bonus varies with the type of installation. It is a reduction of loan that has to be repaid and is granted after the completion of work and cover up to 50 % of the loan:
    For solar thermal installations, the repayment bonus is up to 40 %.
    For installations, producing heat from biomass, the repayment bonus can be up to € 100.000, from CHP EUR 40 per kW nominal heat capacity.
    For biogas pipelines the repayment bonus is up to 30 % of the net investment costs.
    For aero-, geo- and hydrothermal installations, the repayment bonus is EUR 80 per kW heat power and up to EUR 100.000. For geothermal energy installations with a less than 400m deep hole, the repayment bonus is EUR 4 per meter and with a hole deeper than 400 m, EUR 6 per meter vertical depth.
    Deep geothermal energy installations are subsidized with a repayment bonus of up to EUR 2 million, and up to EUR 2.5 million for the drilling.

  4. Addressees

    Corporations, natural persons and freelancers, farmers, municipalities, municipal corporations and municipal associations, non-profit organisations and associations. SMEs can benefit from a 10 % increase of the subsidy.

  5. Procedure

    Applicants can prepare the application via an online tool on the website. They must then find a financing partner. The bank administers the KFW loan. Further information can be found on this website:
    https://www.kfw.de/inlandsfoerderung/Unternehmen/Energie-und-Umwelt/Förderprodukte/Erneuerbare-Energien-Tiefengeothermie-(272-282)/

  6. Competent authority

    KfW loans are administered and disbursed by regular banks.

  7. Technologies

    Aerothermal

    Aerothermal and hydrothermal installations with a capacity of more than 100kW providing heat for buildings and heat district grids are supported.

    Hydrothermal

    Aerothermal and hydrothermal installations with a capacity of more than 100kW providing heat for buildings and heat district grids are supported.

    Biogas

    The deployment of biogas pipelines is supported for pipelines of at least 300m to transport not-purified biogas for further processing in a CHP or as a fuel.

    Biomass

    The capacity of biomass plants must exceed 100 kW. Plants eligible for the support are: plants with automatic feeding for burning solid biomass, and Cogeneration of power and heat plants with a capacity of between 100 kW and 2 MW.

    Geothermal energy

    For the subsidy geothermal energy must be extracted from a depth of at least 400 m and the temperature of the thermal fluid must exceed 20°C.

    Solar Thermal

    The minimum surface for solar thermal installations is 40 m².