What is subsidized?

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Government subsidies for the use of biofuels

The federal government is striving to create the "energy turnaround. In addition, the use of renewable energies is promoted by different measures. Which possibilities of promotion and which legal regulations exist for the use of solid biofuels like wood? This is described below.

Buffer storage can be demanded with biomass furnaces and can increase the subsidy.

Renewable energy in the heating market (market incentive program): The federal government supports the expansion of the use of renewable energies in the heat market through investment grants (BAFA) or, under the KfW program, as repayment grants for the early partial repayment of long-term low-interest loans.

The Market Incentive Program (MAP) – targeted subsidies

Hand-fed biomass systems can be subsidized with 1,400 euros/system if dust emissions are below 15 mg/m3 flue gas (manufacturer's proof).

Wood chip heating systems can be subsidized in the output range from 5 to 100 kW with 1,400 euros/system (buffer storage at least). 30 l/kW). The subsidy for pellet stoves (5 to 100 kW) is 36 euros/kW, with the following minimum amounts applying: Pellet stoves with water pocket 1 400 euros, pellet boilers 2 400 euros, pellet boilers with buffer storage (minimum 30 l/kW)

2 900 euro. Combined boilers can also be subsidized. Further bonuses can be granted if biomass systems are used in particularly innovative or efficient applications, for example in combination with thermal solar systems.

Private individuals, freelancers, commercial enterprises, corporations, associations and municipalities are eligible to apply for subsidies. The agricultural residential building is part of private property, private investments are eligible for support. If other objects are heated, it must be ensured that the predominant part of the heat quantity is used privately or commercially.

Whether the application must be made before or after completion of the measure depends on the project in question. Further provisions should be taken from the more comprehensive funding guidelines. Information and applications: Federal Office of Economics and Export Control (BAFA), www.bafa.de.

Loans via Kreditanstalt fur Wiederaufbau (KfW)

Wood-fired boilers such as log boilers can be subsidized by state grants.

On 1. March 2013 saw the launch of the KfW program "Energy-efficient refurbishment – supplementary loan". Funding is available for the construction and expansion of central heating systems based on renewable energies. This also includes biomass systems with a nominal heat output of 5 kW to 100 kW. The prerequisite for a subsidy is that a heating system must have been installed for the residential building before 1. January 2009 was installed. The measures must be carried out by specialized companies. All sponsors of investment measures in residential buildings and owner-occupied apartments as well as first-time buyers of newly renovated residential buildings and apartments are eligible to apply.

Financing is provided for up to 100 percent of eligible investment costs, including ancillary costs, for example for planning and consulting services. The credit amounts up to

50,000 euros per residential unit. The promotional loan can be used in addition to grants from BAFA's market incentive program "Promotion of Measures for the Use of Renewable Energies in the Heating Market. The sum of the loan and the subsidy may not exceed the eligible sum. Applications must be submitted to the house bank before the heating system is replaced. The credit is also provided by the house bank.

Further information is available from KfW: [email protected]; ☎ 0800/539 9002; Internet: www.kfw.en.

The Renewable Energy Sources Act (EEG) – the amount of electricity remuneration

The Renewable Energies Act regulates the remuneration of electricity generated from renewable energies such as solar, wind and biomass and fed into the public power grid. For the different types of energy, different minimum subsidies have been defined, which are paid at the same level for a minimum period after commissioning. For more details see www.renewable-energies.en.

Agricultural Investment Promotion Program – AFP, a program of the Land

Anyone who wants to use renewable energies in their own homes and businesses should seek good advice on which state subsidies are possible and which subsidies are mutually exclusive.

The Agricultural Investment Promotion Program (AFP) applies only to agricultural enterprises and is based on the framework plan of the joint task "Improvement of the agricultural structure and coastal protection". Federal and state governments agree annually on a framework guideline, which is revised annually and adapted to the circumstances. The individual federal states can deviate restrictively within the given framework.

In Lower Saxony, for example, this program provides funding for technologies and systems for the use of renewable energies

Use of renewable energy, such as heating technology for biofuels are subsidized. However, this only applies to measures carried out on the farm (must be activated on the farm). Commercial use is not permitted.

Investments that are to be assigned to the residential area are excluded from the subsidy, however, the recovered energy may also be used in the manager's residence. Double subsidies from other public funds are excluded. Funding is provided in the form of non-repayable grants, currently at 20 percent of the net investment volume. As described, the guidelines in other federal states may differ. Details, application forms and guidelines can be obtained from the relevant agricultural advisory or funding institutions.

Due to the tight budgetary situation of the federal states, projects for the use of renewable energies are often only subsidized as so-called "lighthouse projects".

No claim is made to the completeness of the above summaries. Further information at www.fnr.de.

Funding opportunities in Rhineland-Palatinate

  • Support program for interest subsidies of the Ministry of Economy, Climate Protection, Energy and Regional Planning (MWKEL)

In the subsidy program interest subsidies for investments in the field of energy efficiency and energy supply including renewable energies, the MWKEL supports the financing of installations in the energy sector as a contribution to increasing energy efficiency and the integration of renewable energies. The object of the subsidy is the construction and expansion of heating networks for the direct heat supply of two or more buildings, including biomass combustion plants. Facilities for fuel supply and fuel storage are also eligible for subsidy. Subsidies are granted in the form of repayment subsidies, regardless of whether a loan agreement is concluded. Certain maximum aid intensities apply to companies (including farms). Cumulation with other subsidies is possible, provided that the guidelines of other subsidy programs do not conflict with this.

For information, contact the Rhineland-Palatinate Energy Agency: Thorsten Henkes, ☎ 0631/205 75 7130; Internet: www.energy agency.rlp.en.

  • Modernization subsidy programs in Rhineland-Palatinate

In the modernization program, the state of Rhineland-Palatinate promotes the modernization of owner-occupied residential property and rented apartments through Investitions- und Strukturband Rheinland-Pfalz (ISB). The use of alternative and regenerative energies is also promoted, including systems for the use of energy from biomass (wood pellets, wood chips). The aim of the program is to improve housing for people on low incomes. The subsidy is granted to:

  • as a loan. The amount of the loan is based on the expected investment costs and amounts to 460 euros/m2 of eligible living space. The expected investment costs must be supported by a detailed cost estimate. Owners of owner-occupied residential property receive a subsidy if they comply with certain regional income limits. In the case of rental housing, certain regional rent ceilings apply for the period after completion of the construction measures. Applications are available from house banks, which submit the application to the Investment and Structure Bank (ISB).
  • as an investment grant (only for certain measures). Investment grants are used, among other things, to promote measures for the sustainable saving of energy or water. The investment costs per dwelling must amount to at least 2,000 euros and may not exceed 10,000 euros. The subsidy amounts to 25 percent of the eligible costs, up to a maximum of 2,500 euros per year and recipient. Funding depends on household size and income. Applications are available from the district administration or the city or municipal administration.

Further information can be obtained from the city and district administrations, the house banks (low-interest loans) or the ISB Rhineland-Palatinate: Sabine Mikic, ☎ 06131/6172-1746 or Alexandra Wust, ☎ 06131/6172-1764; Internet: www.isb.rlp.de.

Subsidy for wood combustion plants in Hesse

Who can apply for subsidies? With exceptions, all natural and legal persons, as well as energy service providers and public institutions.

What is promoted?

  • Marketable automatically fed biomass combustion systems for central heat generation from 50 kW up to and including 100 kW nominal heat output with a minimum efficiency for pellet boilers of 90 percent and for woodchip boilers of 88 percent.
  • Marketable automatically fed biomass combustion plants for central heat generation with a nominal heat output of 101 kW or more

It should be noted that the fuels are obtained from raw wood or straw and energy crops or from natural sawmill by-products.

How is promoted?

  • The subsidy for the construction of biomass combustion plants is currently 36 euros per kW of installed nominal heat output
  • The grant amounts to up to 30 percent of the eligible investment expenditure, up to a maximum of 200,000 euros

A cumulation with subsidies from other funding sources, such as BAFA or KfW is only permitted for biomass combustion plants, taking into account the subsidy regulations, whereby the flat-rate limit is a maximum of 200,000 euros in three years per company. Care must be taken not to start the project before the grant is approved.

The Wirtschafts- und Infrastrukturbank Hessen, WI-Bank, based in Frankfurt, is responsible for the subsidies; it has been commissioned by the Ministry for the Environment, Energy, Agriculture and Consumer Protection to provide the subsidies. Further information is available on the Internet at www.hessenenergie.en or at www.wibank.de. Free advice is offered.