Targetes Promotion of Investments in Energy Efficiency

7/18/2023

This affects every company: The cost of energy has risen enormously in the last year and the legal regulations on energy efficiency are becoming increasingly stringent. In addition, sustainable management is no longer just an economic issue, but also an ecological one. What many companies do not know: Targeted promotion of investments to increase energy efficiency can help you solve these challenges while preserving liquidity.

The basic sense and purpose of subsidies

The purpose of awarding subsidies is to enable important investments to be made - especially by private companies - with the help of public tax revenue. Subsidies are loans, grants, public participations, guarantees and sureties that can be granted by EU, federal or state funding bodies. The capital provided or the substitute securities serve to achieve economic policy objectives and sustainably increase national income. The capital provided serves to boost the economic strength of companies and the economy as a whole. In turn, the state receives money back in the form of taxes.

Which support programs are important and who can be supported?

There are currently around 3,300 funding programs from the EU, the federal government and individual federal states. These are spread across different applications, although one topic is already predominant today and will remain so in the coming decades: "The saving of CO2, which contributes significantly to the reduction of global warming and thus makes an active contribution to climate change." By making targeted investments in energy-efficient measures, private companies can also make a significant contribution. This is financially feasible for many companies through the use of special funding programs. In principle, companies of all economic sectors and sizes are eligible for funding if they are planning to invest in tangible assets such as machinery, IT, technical equipment of any kind, facilities and buildings (residential and non-residential). They can receive a proportionate subsidy and/or subsidy financing.

The right approach to obtaining subsidies

In order to receive funding for upcoming investments in energy efficiency, it is necessary for these investments to be checked beforehand by an expert, a so-called energy efficiency officer, to ensure that they are eligible for funding. The task of the energy efficiency officer is to compare the investments with the requirements set out in the funding guidelines. In addition, the existing energy consumption must first be determined and properly documented. In a second step, the current energy consumption is compared with the future consumption after implementation of the measure. Funding can be obtained if the criteria specified in the funding guidelines are met or even exceeded. Any costs incurred for an external expert can in turn be subsidized by the public sector on a pro rata basis if the expert is accredited by the relevant funding institutions. The investor is only entitled to commission and implement the investment with the relevant specialist companies once an expert has prepared his report.

Eligible investments in energy efficiency measures for tangible assets

This includes both the purchase of new systems and the modernization of existing systems such as Systems for generating process heat, drives and motors, insulation, compressed air, e-cargo bikes, electromobility, green IT, compressors, combined heat and power, pumps, fans, heating networks. Important to note: Funding is always earmarked for a specific purpose and may only be used for the investment applied for. After completion of the investment, the funding recipient will provide the funding provider with evidence of the use of funds.

What benefits arise from the use of subsidies?

Investors who regularly make use of subsidies are demonstrably more economically successful than those who do not.

We are also happy to support your projects!

To this end, we work in partnership with Deilmann Business Consulting. The company specializes in funding consulting, has an excellent network of funding institutions throughout Germany and is characterized by professional analysis, sophisticated concepts and successful applications for funding consulting. Please contact us and we will put you in touch.

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