responsibility finder
Schleswig-Holstein

Apply for a loan with repayment subsidy for the use of geothermal energy

Source: Zuständigkeitsfinder Schleswig-Holstein (Linie6PLus)

Service Description

If you tap into and use geothermal energy from deep underground to generate energy and heat, you can apply for a loan with a repayment subsidy under certain conditions.

The Federal Ministry for Economic Affairs and Energy (BMWi) promotes measures to increase energy efficiency.
You can receive funding for the following measures:

  • for the construction of facilities to utilize geothermal energy,
  • for production and injection wells to tap geothermal energy at a drilling depth of more than 400 meters for heat generation or for combined electricity and heat generation,
  • for additional expenditure for boreholes with special technical risks.

You will not receive funding

  • for exploratory drilling,
  • for self-built plants and used plants,
  • for prototypes (plants of which there are fewer than 4 units),
  • if you are a manufacturer of eligible installations or their main components,
  • for trust constructions,
  • for so-called in-sure transactions, such as the purchase from the property of a spouse,
  • for debt rescheduling and subsequent financing of measures already started,
  • if you have already started the measure before submitting the application.

The federal government, the federal states and their institutions are also not eligible.
If you develop deep geothermal energy and use it sustainably, you can obtain a loan of up to EUR 25 million. You can get a loan for up to 80 percent of the eligible costs of your measure.

The amount of the subsidy for the repayment of the loan depends on the type and use of your measure:

Measures exclusively for heat generation

  • Plant subsidy:
    • You receive EUR 200 per kilowatt (kW) of installed or extended nominal heat output. You can receive a maximum subsidy of EUR 2 million.
  • Drilling cost support:
    • for drilling depths from 400 meters to 1,000 meters below, you receive a subsidy of EUR 375 for each meter of vertical depth (not drilling distance),
    • for drilling depths between 1,000 meters and 2,500 meters below, you receive a subsidy of EUR 500 for every meter of vertical depth (not drilling distance),
    • from a drilling depth of 2,500 meters, you will receive a subsidy of EUR 750 for every meter of vertical depth (not drilling distance).

      You will receive a maximum subsidy of EUR 2.5 million for a deep well. You can drill up to 4 deep wells in total. You can therefore receive a maximum subsidy of EUR 10 million.
  • Additional expenses for deep boreholes with particular technical risk:
    • For deep wells with a particular technical risk, you will receive up to 50 percent of the additional costs incurred for each well (but no more than 50 percent of the previously planned costs).

      You will receive a grant of up to EUR 1.25 million for a well with a particular technical risk. In total, you may drill up to 4 deep boreholes for your project. You can therefore receive a maximum grant of EUR 5 million.

Measures for combined electricity and heat generation

  • Plant promotion:
    • The amount of your subsidy depends on the gross electrical output (P) and the nominal heat output (Q). The subsidy is calculated as follows: (1-(P/Q))*EUR 200 per kilowatt of nominal heat output installed or extended. You can receive a maximum subsidy of EUR 1 million.
  • Drilling cost support:
    • for drilling depths from 400 meters to 1,000 meters, you receive a subsidy of EUR 375 for every meter of vertical depth (not drilling distance),
    • for drilling depths between 1,000 meters and 2,500 meters, you receive a subsidy of EUR 500 for each meter of vertical depth (not drilling distance),
    • from a drilling depth of 2,500 meters you will no longer receive a subsidy.
    • You receive up to EUR 975,000 in subsidies for deep drilling.

      You may drill up to a total of 4 deep wells in your project. You can receive a maximum grant of EUR 3.9 million.
  • Additional expenses for deep wells with a particular technical risk:
    • For deep wells with a particular technical risk, you will receive up to 50 percent of the additional costs incurred for each well (but no more than 50 percent of the previously planned costs).

      You will receive a grant of up to EUR 1.25 million for a well with a particular technical risk. In total, you may drill up to 4 deep boreholes for your project. You can receive a maximum grant of EUR 5 million.

If you

  • a company
    • with less than 250 employees
      and
    • less than EUR 50 million annual turnover have
      and
  • the heat and/or energy produced by your measure is used for the operation of a small or medium-sized enterprise (SME),

then your grant increases by a total of 10 percent.

You will only receive the repayment grant once you have completed your measure. You must provide proof of this:

  • that you have spent the money from the loan on the measure,
  • that the measure technically fulfills its purpose.

You must keep all invoices and receipts relating to the eligible costs.

Applications for funding are processed by the Kreditanstalt für Wiederaufbau (KfW).

You have no claim to approval of the funding.

Note for small companies:
Small companies with fewer than 50 employees and an annual turnover of no more than EUR 10 million can also apply for a loan with repayment subsidy via the "Renewable Energies - Premium" promotional program (KfW promotional loan for renewable energy - deep geothermal energy (Premium) - No. 272/282 Approval for small companies (282)).


Process flow

Application method A (bank pass-through)

  • Companies and legally independent municipal enterprises,
  • Private individuals and freelancers,
  • farmers,
  • non-profit applicants and cooperatives and
  • Contractors (energy service providers)

must apply for funding in writing to the Kreditanstalt für Wiederaufbau (KfW).

  • You first need a financing partner, through whom you then submit your application to KfW. A financing partner can be a bank, building society or financial intermediary.
  • Talk to your financing partner (e.g. the bank where you want to take out your financing) about incorporating a promotional loan. They will advise you on which documents are required and will submit the application to KfW on your behalf.
  • Once KfW has approved your application, you will conclude a loan agreement with your financing partner.
  • As soon as you have received approval for your funding, you can start the construction work or conclude the purchase contract.
  • Depending on the progress of the construction work, your financing partner will pay you the loan in one lump sum or in installments.
  • Once you have completed the project, you must provide your financing partner with proof,
    • that you have spent the money from the loan on the planned measure and
    • that your measure meets the standard for KfW efficiency buildings.
  • Your financing partner checks and confirms your evidence and forwards it to KfW.
  • If KfW has also checked the evidence, you will receive the repayment subsidy as a credit to your loan account. This reduces your loan term.

Application method B (direct loan)

  • Municipalities,
  • legally dependent municipal enterprises and
  • special-purpose associations

must apply for funding in writing directly to the Kreditanstalt für Wiederaufbau (KfW).

  • Download the application form from the KfW website and complete it in full.
  • Then send it to KfW by post or fax together with the required documents.
  • KfW will review your application and decide on the funding. You will then receive notification by post from KfW as to whether your loan with repayment subsidy has been approved.
  • Confirm the loan offer and start the project. KfW will pay you the loan amount in full.
  • When you have completed the measure, you must provide KfW with proof,
    • that you have spent the money from the loan on the measure and
    • that the measure technically fulfills its purpose.
  • You submit this evidence directly to KfW.
  • Once KfW has checked the evidence, you will receive the repayment subsidy as a credit. This reduces your loan term.
Requirements

Applications can be submitted:

  • large and medium-sized enterprises with
    • more than 49 employees
      and
    • a turnover of more than EUR 10 million per year
  • Private individuals and freelancers who use the heat and/or electricity generated exclusively for their own private use
  • farmers
  • Municipalities, municipal companies and special-purpose associations
  • Non-profit applicants and cooperatives

Further requirements:

  • Your measure must meet technical standards:
    • Your system must tap and use geothermal energy from a drilling depth of more than 400 meters,
    • the extracted thermal water or steam must be at least 20 degrees Celsius and have a geothermal heat output of at least 0.3 megawatts
    • for systems for combined power and heat generation: the nominal heat output must be at least 4,000 kilowatts
      and
    • the gross electrical output must be less than the heat connection output on the consumption side
  • the heat and/or electricity from your system must be used predominantly in Germany
  • You must operate your system for at least 7 years

Note:
The usual formal requirements apply for loans to municipalities, municipal companies and special-purpose associations.

Which documents are required?

Application method A (bank pass-through)
When submitting the application

  • Companies and legally independent municipal enterprises,
  • private individuals and freelancers,
  • farmers,
  • non-profit applicants and cooperatives and
  • contractors (energy service providers)

submit an application:

  • Application for repayment subsidy for deep geothermal energy
  • for "de minimis" funding:
    • "De-minimis" declaration
  • for funding under the General Block Exemption Regulation (GBER):
    • Simplified self-declaration SME (if your company is independent and not interlinked with other companies)
      or
    • SME self-declaration (if your company is not independent and is interlinked with other companies)
      or
    • Checklist for additional investment costs (if you are applying for environmental and energy aid)

You may need to submit additional documents for technical documentation.

Once you have completed your measure, you must submit the following documents:

  • Proof of use for companies and freelancers
  • Technical annex to the proof of use

Application method B (direct loan)
The following must be submitted with the application

  • Municipalities,
  • legally dependent municipal enterprises and
  • special-purpose associations

submit an application:

  • Application for repayment subsidy
  • Power of attorney and signature data sheet
  • Identification in accordance with the Money Laundering Act
  • Application for repayment subsidy
  • Power of attorney and signature data sheet
  • Identification in accordance with the Money Laundering Act

You may need to submit further documents for technical documentation.

Once you have completed your measure, you must submit the following documents:

  • Proof of use for municipalities
  • Technical annex to the where-used list
What are the fees?
  • not applicable
What deadlines do I have to pay attention to?
  • Application: before the start of the measure
  • Loan drawdown period: within 12 months of loan approval, in one lump sum or in installments
  • Proof of use of funds: within 9 months of full disbursement of the loan
Processing duration
  • for processing the application:
    • Application route A (bank transfer): usually 3 to 5 days
    • Application route B (direct loan): usually 4 weeks

Note:
You can start implementing the measure immediately after you have been approved for funding.

Legal basis
Applications / forms
  • Forms: yes
  • Online procedure possible: no
  • Written form required: yes
  • Personal appearance required: yes (depends on the procedure with the financing partner)

Application method A (bank pass-through)

  • Companies and legally independent municipal enterprises
  • Private individuals and freelancers
  • Farmers
  • Non-profit applicants and cooperatives
  • Contractors (energy service providers)

Please note
You will receive all the necessary forms from your financing partner. Your financing partner will submit the KfW application.

Application method B (direct loan)

  • Municipalities
  • legally dependent municipal enterprises
  • special-purpose associations
Author
Forwarding service: Deep link to the original portal

The text was automatically translated based on the German content.

Technically approved by

Federal Ministry for Economic Affairs and Energy (BMWi)

Professionally released on

12.08.2020

Teaser

If you tap into and use geothermal energy from deep underground to generate energy and heat, you can apply for a loan with a repayment subsidy under certain conditions.

Process flow

Application method A (bank pass-through)

  • Companies and legally independent municipal enterprises,
  • Private individuals and freelancers,
  • farmers,
  • non-profit applicants and cooperatives and
  • Contractors (energy service providers)

must apply for funding in writing to the Kreditanstalt für Wiederaufbau (KfW).

  • You first need a financing partner, through whom you then submit your application to KfW. A financing partner can be a bank, building society or financial intermediary.
  • Talk to your financing partner (e.g. the bank where you want to take out your financing) about incorporating a promotional loan. They will advise you on which documents are required and will submit the application to KfW on your behalf.
  • Once KfW has approved your application, you will conclude a loan agreement with your financing partner.
  • As soon as you have received approval for your funding, you can start the construction work or conclude the purchase contract.
  • Depending on the progress of the construction work, your financing partner will pay you the loan in one lump sum or in installments.
  • Once you have completed the project, you must provide your financing partner with proof,
    • that you have spent the money from the loan on the planned measure and
    • that your measure meets the standard for KfW efficiency buildings.
  • Your financing partner checks and confirms your evidence and forwards it to KfW.
  • If KfW has also checked the evidence, you will receive the repayment subsidy as a credit to your loan account. This reduces your loan term.

Application method B (direct loan)

  • Municipalities,
  • legally dependent municipal enterprises and
  • special-purpose associations

must apply for funding in writing directly to the Kreditanstalt für Wiederaufbau (KfW).

  • Download the application form from the KfW website and complete it in full.
  • Then send it to KfW by post or fax together with the required documents.
  • KfW will review your application and decide on the funding. You will then receive notification by post from KfW as to whether your loan with repayment subsidy has been approved.
  • Confirm the loan offer and start the project. KfW will pay you the loan amount in full.
  • When you have completed the measure, you must provide KfW with proof,
    • that you have spent the money from the loan on the measure and
    • that the measure technically fulfills its purpose.
  • You submit this evidence directly to KfW.
  • Once KfW has checked the evidence, you will receive the repayment subsidy as a credit. This reduces your loan term.

Requirements

Applications can be submitted:

  • large and medium-sized enterprises with
    • more than 49 employees
      and
    • a turnover of more than EUR 10 million per year
  • Private individuals and freelancers who use the heat and/or electricity generated exclusively for their own private use
  • farmers
  • Municipalities, municipal companies and special-purpose associations
  • Non-profit applicants and cooperatives

Further requirements:

  • Your measure must meet technical standards:
    • Your system must tap and use geothermal energy from a drilling depth of more than 400 meters,
    • the extracted thermal water or steam must be at least 20 degrees Celsius and have a geothermal heat output of at least 0.3 megawatts
    • for systems for combined power and heat generation: the nominal heat output must be at least 4,000 kilowatts
      and
    • the gross electrical output must be less than the heat connection output on the consumption side
  • the heat and/or electricity from your system must be used predominantly in Germany
  • You must operate your system for at least 7 years

Note:
The usual formal requirements apply for loans to municipalities, municipal companies and special-purpose associations.

Which documents are required?

Application method A (bank pass-through)
When submitting the application

  • Companies and legally independent municipal enterprises,
  • private individuals and freelancers,
  • farmers,
  • non-profit applicants and cooperatives and
  • contractors (energy service providers)

submit an application:

  • Application for repayment subsidy for deep geothermal energy
  • for "de minimis" funding:
    • "De-minimis" declaration
  • for funding under the General Block Exemption Regulation (GBER):
    • Simplified self-declaration SME (if your company is independent and not interlinked with other companies)
      or
    • SME self-declaration (if your company is not independent and is interlinked with other companies)
      or
    • Checklist for additional investment costs (if you are applying for environmental and energy aid)

You may need to submit additional documents for technical documentation.

Once you have completed your measure, you must submit the following documents:

  • Proof of use for companies and freelancers
  • Technical annex to the proof of use

Application method B (direct loan)
The following must be submitted with the application

  • Municipalities,
  • legally dependent municipal enterprises and
  • special-purpose associations

submit an application:

  • Application for repayment subsidy
  • Power of attorney and signature data sheet
  • Identification in accordance with the Money Laundering Act
  • Application for repayment subsidy
  • Power of attorney and signature data sheet
  • Identification in accordance with the Money Laundering Act

You may need to submit further documents for technical documentation.

Once you have completed your measure, you must submit the following documents:

  • Proof of use for municipalities
  • Technical annex to the where-used list

What are the fees?

  • not applicable

What deadlines do I have to pay attention to?

  • Application: before the start of the measure
  • Loan drawdown period: within 12 months of loan approval, in one lump sum or in installments
  • Proof of use of funds: within 9 months of full disbursement of the loan

Processing duration

  • for processing the application:
    • Application route A (bank transfer): usually 3 to 5 days
    • Application route B (direct loan): usually 4 weeks

Note:
You can start implementing the measure immediately after you have been approved for funding.

Legal basis

Applications / forms

  • Forms: yes
  • Online procedure possible: no
  • Written form required: yes
  • Personal appearance required: yes (depends on the procedure with the financing partner)

Application method A (bank pass-through)

  • Companies and legally independent municipal enterprises
  • Private individuals and freelancers
  • Farmers
  • Non-profit applicants and cooperatives
  • Contractors (energy service providers)

Please note
You will receive all the necessary forms from your financing partner. Your financing partner will submit the KfW application.

Application method B (direct loan)

  • Municipalities
  • legally dependent municipal enterprises
  • special-purpose associations

Author

Forwarding service: Deep link to the original portal

The text was automatically translated based on the German content.

Technically approved by

Federal Ministry for Economic Affairs and Energy (BMWi)

Professionally released on

12.08.2020

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