An industrial company runs an energy-intensive production step on fossil-fired equipment. It wants to convert the process to a far more efficient, low-emission setup: new equipment and a reworked process that together cut both energy use and CO2 emissions substantially. The investment is large, and without support the payback period would be long enough to keep delaying the decision.
The Federal Funding for Energy and Resource Efficiency in Business (EEW) gives a non-repayable investment grant for measures that cut a company's energy and resource use and its greenhouse-gas emissions. It is organised in six modules, from replacing single components such as motors and compressors, through process heat from renewables and energy-management software, to the broad optimisation of plants and processes. Funding rates run from roughly 10 to 60 percent depending on the module, the content of the project and the company size.
In Module 4 the grant can reach up to €20 million per project. In the premium track the grant is a rate on the investment cost, capped by the CO₂ funding ceiling per tonne of greenhouse gas saved; for external waste-heat use, electrification with renewable power or hydrogen, a decarbonisation bonus of 5 or 10 percentage points is added. The company may only start once the grant decision is issued, and the funded plant must be operated as intended for at least three years. Companies can take the grant from BAFA directly or, alternatively, a low-interest KfW loan with a repayment subsidy.
The conversion is a classic case for the broad process-optimisation module in its premium variant, which is largely technology-open and requires a savings concept with a verified reduction in greenhouse-gas emissions, prepared by a certified expert. The eligible costs are the new plant and equipment, plus the savings concept and the implementation support by external energy consultants. The premium track pays a rate on the investment cost, plus a decarbonisation bonus for qualifying measures, and the CO₂ funding ceiling caps the amount by the greenhouse gas saved; on an investment in the single-digit millions, the grant comes to about €2.5 million. The company applies before any binding order and commits to operating the funded equipment as intended for at least three years.
A €2.5M BAFA EEW grant.
The grant shortens the payback period enough to make the conversion a decision the company can take now. Energy costs fall, emissions fall sharply, and a fossil-fired process is replaced by an efficient, lower-carbon one.
Module 4 · Process optimisation (premium) · up to 55%For a substantial process conversion with a real emissions reduction, BAFA EEW's premium track can fund a large share of the investment, with the CO₂ funding ceiling capping the grant by the greenhouse gas saved. Getting the grant decision before the investment starts, and getting the savings concept right, are the gating conditions.
More on BAFA EEW: The guide BAFA EEW: modules, grant rates and application explains the programme step by step. How we support your project is covered under BAFA EEW consulting.
The questions we hear most about the programme. Short answer first, detail after.
A non-repayable investment grant for measures that cut a company's energy and resource use and emissions, across six modules from replacing single components to broad process optimisation. Funding rates run from roughly 10 to 60 percent.
In Module 4 the grant can reach up to €20 million per project. The premium track pays up to 45% of the extra cost (small companies; medium 35%, large 25%) plus up to 10 percentage points decarbonisation bonus; the CO₂ funding ceiling caps the grant per tonne of greenhouse gas saved.
Yes. The premium variant requires a savings concept with a verified reduction in greenhouse-gas emissions, prepared by a certified energy expert, alongside the application.
Before any binding order; you may only start once the grant decision is issued. You must then operate the funded equipment as intended for at least three years.
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