Energy Efficiency Grants in Germany: What Companies Can Get in 2026

Energy efficiency grants are non-repayable public payments that cover part of what a company invests to cut its energy use or emissions. In Germany, the main one for businesses is the federal EEW programme, run by the Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle, BAFA). According to KfW's programme overview of February 2025, it pays between 10% and 60% of eligible costs (PDF), depending on the module and the size of your company.

The money is substantial, but the rules are strict. Most lost grants fail on timing rather than on the technology. This guide covers the grants for energy efficiency German companies can use in 2026, with the rates for each and the rules that decide if you keep the money.

What energy efficiency grants can German companies get in 2026?

In 2026, government energy efficiency grants for business in Germany come through six federal instruments. The EEW grant from BAFA and its loan twin at KfW pay for the investment itself. Four smaller routes, EBN, BEG, BIK and the Forschungszulage, pay for the energy audit, the building and the research behind a new process.

Sources: BAFA, KfW, the Federal Ministry for Economic Affairs and Energy (BMWE), the DIHK and the Bavarian Umweltpakt funding guide, checked 19 October 2026.

The building boundary is the one most applicants miss. EEW funds processes and plant, never the building itself. Insulation, windows and building heating belong to the Federal Funding for Efficient Buildings (Bundesförderung für effiziente Gebäude, BEG), which BAFA lists among its main energy and climate programmes.

For funding beyond energy, see our overview of government funding in Germany.

According to the European Commission, EU energy consumption would be about 27% higher today without the efficiency gains of the past 20 years. Fatih Birol, Executive Director of the International Energy Agency (IEA), put it plainly in November 2025: "Energy efficiency has the power to enhance people's lives and livelihoods".

How does the BAFA EEW programme work?

The Bundesförderung für Energie- und Ressourceneffizienz in der Wirtschaft (EEW, federal funding for energy and resource efficiency in business) is the investment programme of the Federal Ministry for Economic Affairs and Energy (BMWE) for efficient plant and processes. BAFA pays the grant and KfW runs the loan. Companies of any size can apply, but three modules are restricted by size:

• Module 1, cross-cutting technologies (Querschnittstechnologien): high-efficiency motors, pumps, fans and compressed-air systems. SMEs only.
• Module 2, renewable process heat: heat pumps, solar thermal and biomass, where more than half the heat serves production.
• Module 3, metering and energy management: sensors, control technology and energy-management software.
• Module 4, process optimisation: a Basis route for SMEs and a technology-open Premium route for all sizes.
• Module 5, transformation plan: an expert roadmap to greenhouse-gas neutrality, filed with the project agency VDI/VDE-IT.
• Module 6, electrification: small companies switching fossil-fired production plant to electricity.

The Federal Energy Efficiency Center (Bundesstelle für Energieeffizienz, BfEE) reported in April 2025 that 55,342 efficiency projects were approved between 2019 and 2023, with about EUR 2.9 billion in grants.

BAFA's most recent published split, from November 2023, showed that about 90% of committed funds went to Modules 2 and 4. That tells you where the large grants sit: process heat and process optimisation.

According to the federal funding database (Förderdatenbank), EEW applications are possible until 31 December 2028, subject to available budget. Our BAFA EEW programme guide sets out each module's technical conditions.

How much can your company get? Rates by module and size

BAFA pays a fixed share of eligible investment, set by module and company size. According to KfW's rate overview of February 2025, small companies get the highest rates, up to 60% for renewable process heat. The grant is capped at EUR 20 million per project in Modules 2 to 4 and at EUR 200,000 in Modules 1 and 6.

Sources: KfW overview of programme 295, as of 20 February 2025, and the BAFA EEW programme page for size restrictions.

Your size class follows the EU SME definition, and it decides both your rate and your access to Modules 1, 4 Basis and 6. Read our guide to the Mittelstand SME definition first.

Module 4 Premium works differently, as our BAFA EEW industrial decarbonisation case shows. Under the EEW directive of January 2024, it needs a savings concept (Einsparkonzept) from an energy expert. The concept must show that the measure cuts greenhouse gases by at least 30% (PDF). The alternative is an absolute cut of 100, 300 or 1,000 tonnes of CO2 equivalent a year for small, medium and large companies.

You can then take a lower rate on the total investment, or the higher table rates on the extra cost compared with a less efficient reference.

The directive's decarbonisation bonus (Dekarbonisierungsbonus) adds 5 percentage points on total cost, or 10 on extra cost. It applies to external waste-heat use, electrification with renewable power, and renewable hydrogen. Which cost basis pays more depends on how large the extra cost is, so run both before you file.

Illustrative example: a company plans a EUR 800,000 heat pump under Module 2. If more than half its heat goes into production and it runs on renewable electricity, BAFA pays 60% for small, 50% for medium and 40% for large companies. On the same machine, that is EUR 480,000, EUR 400,000 or EUR 320,000.

What does a funded project look like in practice?

A funded EEW project starts with an application, not an order. One food producer we supported replaced a fossil-fired boiler with a large heat pump drawing mainly on ambient heat. It applied before ordering, waited for the grant decision and received a EUR 600,000 non-repayable grant under Module 2.

The project qualified because more than half of the new plant's heat goes into production, and the company must run the plant as intended for at least three years. Our BAFA EEW heat pump case study shows the set-up step by step.

Grant or KfW loan: which route fits your investment?

Every EEW investment measure can run as a non-repayable BAFA grant or as a KfW loan 295 with a repayment subsidy (Tilgungszuschuss), where part of the principal is forgiven. You choose one route per measure. Filing the same measure with BAFA and KfW is not allowed.

The BAFA grant is the simpler of the two energy efficiency subsidies. It suits a company that can fund the rest from cash or an existing credit line.

The KfW loan suits a large investment you would finance with debt anyway, because the repayment subsidy cuts what you pay back.

Decide the route before you file, because the timing rule below applies either way.

Apply before you order: the timing rule that costs the most grants

Apply before you sign anything binding. Under the EEW directive, a project starts when you sign a supply or works contract linked to the measure, and a measure that has started cannot be funded. A withdrawal right in the contract does not change that.

In our work, the early order is the mistake we see most, and it cannot be repaired once the contract is signed.

Source: EEW directive of 25 January 2024, published in the Bundesanzeiger.

Wait for the grant decision (Zuwendungsbescheid) before you order. After that, the funded equipment must stay in use for its purpose, and an early sale can trigger a pro-rata clawback.

Does the Energy Efficiency Act (EnEfG) affect your company?

Under current law, the Energy Efficiency Act (Energieeffizienzgesetz, EnEfG) places duties on companies whose average energy use exceeds 2.5 GWh a year. It forces larger consumers to identify and plan efficiency measures that the EEW programme can then co-fund. Two thresholds apply:

• Management system: companies using more than 7.5 GWh a year on average over the last three calendar years need an energy or environmental management system.
• Implementation plans: companies using more than 2.5 GWh a year must draw up and publish plans for the measures their audit or management system found economic, within three years.

The 7.5 GWh threshold may rise. A government bill (Drucksache 21/8027) would lift the management-system trigger to 23.6 GWh a year. It had its first reading on 24 September 2026 and a public hearing on 5 October 2026. Until it passes, the current thresholds apply.

If you need an audit first, the subsidised energy consulting programme for non-residential buildings and plant (Energieberatung für Nichtwohngebäude, Anlagen und Systeme, EBN) pays 50% of the fee. But the EBN programme runs only until 31 December 2026. Companies already obliged to audit under the Energy Services Act (Energiedienstleistungsgesetz, EDL-G) cannot use it.

Can you combine energy efficiency funding with other grants?

Yes, as long as no cost is funded twice. The Bundesförderung für Energie- und Ressourceneffizienz in der Wirtschaft (EEW) bars other public aid on the same measure. Different costs on the same project can still carry different federal instruments side by side.

The Forschungszulage, Germany's research allowance, fits naturally next to EEW. A manufacturer can claim it for the development work on a new process and use EEW for the plant that runs it, provided the cost ledger keeps the two apart.

EEW is state aid, so it runs under either the EU's General Block Exemption Regulation (GBER) or the de minimis rules, and firms in difficulty are excluded. Our guide to GBER and de minimis rules explains the ceilings and the difficulty test.

How do you apply for business energy efficiency grants, step by step?

You apply for business energy efficiency grants online, before the measure starts. The six steps below take a measure from the first module check to a funded plant that has to stay in use for at least three years.

• Pick the module that fits the measure and confirm your EU size class.
• Prepare the evidence. Module 4 Basis needs an energy expert to confirm a final-energy saving of at least 15%. Module 4 Premium needs a full savings concept.
• Set up access. You apply through Förderzentrale Deutschland, which requires an ELSTER "Mein Unternehmenskonto" for the company and BundID for the people who file.
• Submit before any binding contract, then wait for the grant decision.
• Order and implement within the 36 months the directive allows.
• Keep the equipment running for at least three years.

Most failed EEW applications fail on form rather than substance: the wrong module, a contract signed too early, or a savings case that does not hold up. BeFunded's BAFA EEW funding consulting starts with a free eligibility check, picks the module with the best rate, and compares the grant with the KfW loan. We file the application and handle BAFA's queries through to reporting. The fee is a fixed share plus a success component, agreed upfront.

This article is general information, not legal, tax or financial advice. Rules, rates and deadlines change, so confirm the details with BAFA, KfW or a qualified adviser before you apply.