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 below ground 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 you have submitted the application.
If you develop deep geothermal energy and use it sustainably, you can obtain a loan of up to EUR 25 million. You can receive 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
-
System subsidy:
-
You receive EUR 200 per kilowatt (kW) of constructed or extended nominal heat output. You can receive a maximum grant of EUR 2 million.
-
You receive EUR 200 per kilowatt (kW) of constructed or extended nominal heat output. You can receive a maximum grant of EUR 2 million.
-
Drilling cost subsidy:
- 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 will 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 receive a subsidy of EUR 750 for every meter of vertical depth (not drilling distance),
You 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 wells with special technical risk:
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For deep wells with special technical risk, you will receive up to 50 percent of the resulting additional costs 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.
-
For deep wells with special technical risk, you will receive up to 50 percent of the resulting additional costs for each well (but no more than 50 percent of the previously planned costs).
Measures for combined electricity and heat generation
-
Plant subsidy:
-
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.
-
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 subsidy:
- for drilling depths from 400 meters to 1,000 meters, 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 will receive a subsidy of EUR 500 for each meter of vertical depth (not drilling distance),
-
from a drilling depth of 2,500 meters you no longer receive a subsidy.
You receive a grant of up to EUR 975,000 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 boreholes with special technical risk:
-
For deep wells with special technical risk, you will receive up to 50 percent of the resulting additional costs 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.
-
For deep wells with special technical risk, you will receive up to 50 percent of the resulting additional costs for each well (but no more than 50 percent of the previously planned costs).
If you are
-
a company
-
with fewer than 250 employees
and - less than EUR 50 million annual turnover and
-
with fewer than 250 employees
- 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 will be increased by a total of 10 percent.
Small and medium-sized enterprises have
-
have fewer than 250 employees
and - an annual turnover of no more than EUR 50 million.
You will only receive the repayment grant once you have completed your measure. To do this, you must prove
- 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.
Teaser
If you tap into and use geothermal energy from below ground to generate energy and heat, you can apply for a loan with a repayment subsidy under certain conditions.
Process flow
You must submit the application 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 prove to your financing partner
- 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 will check and confirm your evidence and forward 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.
Requirements
Applications can be submitted by
- small enterprises with
-
with less than 50 employees
and - a turnover of no more than EUR 10 million per year
Further requirements:
- Your measure must meet technical standards:
- Your plant 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 heat and power 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
Please note
The usual formal requirements apply for loans to municipalities, municipal companies and special-purpose associations.
Which documents are required?
You must submit the following with your 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 -
Self-declaration SME (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)
-
Simplified self-declaration SME (if your company is independent and not interlinked with other companies)
You may have to submit further 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
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: usually 3 to 5 days
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)
Please note:
You will receive all the necessary forms from your financing partner. The KfW application is submitted by your financing partner.
Weiterführende Informationen
Author
The text was automatically translated based on the German content.
- KfW promotional loan for renewable energy - deep geothermal energy (Premium) - No. 272/282 Approval for small companies (282)
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