A food producer uses a large amount of low- to medium-temperature process heat, today generated by a fossil-fired boiler. The company wants to replace that heat source with a large-scale heat pump that draws mainly on ambient heat, topped up with waste heat, cutting both fuel costs and emissions. The heat pump is a significant capital investment, and the company wants to reduce the upfront cost.
The process-heat module of the EEW funds the purchase and installation of plants that provide heat from renewable energy, solar thermal, heat pumps, geothermal or biomass, where the heat is used mainly for processes, that is for making, processing or finishing products. Heat pumps must draw their heat mainly from renewable sources and run exclusively on renewable electricity. The grant is 60% for small, 50% for medium-sized and 40% for large companies (biomass 40/30/20%), at most €20 million, and the company may only start once the grant decision is issued. Companies can take the grant from BAFA directly or, alternatively, a low-interest KfW loan with a repayment subsidy.
Because more than half of the heat from the new plant goes into production processes, the investment qualifies under the process-heat module. The eligible costs are the heat pump and the associated installation, with the savings and the share going to processes documented as the module requires. The grant covers a defined share of the investment, and on a heat-pump investment of this size the grant comes to about €600,000. The company applies before ordering the plant and keeps it in operation for the required minimum period.
BAFA EEW is applied for before the investment begins, through the Foerderzentrale Deutschland. For the process-heat module, the application documents the share of the heat that goes to production and the expected savings, and the funded plant must be operated as intended for at least three years; implementation may only start once the grant decision is issued. A certified energy consultant usually supports the application, and that consulting can itself be eligible. It is also worth weighing the two routes against each other: the BAFA grant pays a direct, non-repayable share, while the alternative KfW loan with a repayment subsidy can suit a larger investment that benefits from spreading the cost. Heat pumps perform best where the required process temperatures sit within their efficient range and where ambient heat is available (waste heat only counts as a top-up in this module), so a short check of the heat source and the temperature levels before the application is time well spent.
A €600k BAFA EEW grant.
The grant lowers the upfront cost of the heat pump and improves the return on the switch. The producer replaces fossil process heat with a renewable source, cutting energy costs and emissions in one investment.
Module 2 · Process heat from renewables · 40–60%BAFA EEW makes the switch to renewable process heat materially cheaper to undertake. The key conditions are that the heat mainly serves production and that the grant is secured before the investment begins. For any company running fossil-fired process heat, it is one of the most direct routes to cutting both cost and emissions.
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.
In BAFA EEW module 2, small companies receive 60%, medium-sized 50% and large 40% of eligible costs, at most €20m per project; biomass gets 40/30/20%. The heat pump must draw its heat mainly from renewable sources, run on renewable electricity, and more than half of the heat must serve production processes.
The purchase and installation of plants that provide heat from renewable energy - solar thermal, heat pumps, geothermal or biomass - where the heat is used mainly for production processes. Heat pumps must mainly use renewable heat sources and run on renewable electricity.
More than half of the heat from the new plant must serve production processes, that is making, processing or finishing products, for the investment to qualify under this module.
A company can take the grant from BAFA directly or, alternatively, a low-interest KfW loan with a repayment subsidy.
Before ordering the plant; you may only start once the grant decision is issued, and before that contracts are allowed only with a condition precedent or subsequent. The plant must then run as intended for at least three years.
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