Energy Management: Subsidies

There are three currently three subsidizing options:

• Subsidizing for the setup or expansion of an energy or environmental management system
• Reduced EEG levy
• Peak consumption compensation

Subsidy for the Setup or Expansion of an Energy or Environmental Management System

Improve energy efficiency, decrease costs, reduce emissions and protect the environment as a result: these are compelling reasons for the introduction of an energy management system (EnMS) which makes it possible to identify unnecessary energy consumption, leaks, poor efficiency and utilization rates, as well as inadequate reactive current compensation. Due to peak and off-peak tariffs, the time of day at which energy is consumed also influences costs. Actual practice reveals that savings of 5 to 10% can be realized alone by means of responsible use of valuable resources or minimal investment. Committed companies significantly reduce their energy costs and thus increase their earnings and competitiveness by optimizing production and other processes. This also results in a valuable contribution to environmental protection.

Energy and environmental management systems have once again been eligible for subsidies since 2019. Up to 40% of the costs of an energy management system are subsidized by the German federal government, provided that it’s implemented within 24 months.

In particular, subsidization is available for procurement, installation and initial startup of:

• Software solutions used to support energy or environmental management systems (energy management software) such as EMC 5.x from GOSSEN METRAWATT
• Sensors and analog-digital converters for recording the flow of energy and other quantities which are relevant for energy consumption for the purpose of integration into the energy or environmental management system
• Actuators for the efficient control/regulation of energy flow
• Data loggers and gateways for the transmission of sensor data to the software solution, the use of which should result in a quantifiable reduction in energy consumption
• Control technology for influencing systems and processes, provided the primary purpose of their use is to reduce energy consumption
• Instruction or training of personnel in the use of the subsidized software solution conducted by third parties
• Complete external costs of use if the energy management software is made available by means of a cloud service

Not eligible for subsidization:

• Procurement, installation and initial startup of computers/servers used to run energy management software, and to display consumption data and reports
• Monitors, printers, uninterruptible power supplies and other peripheral devices
• Procurement, installation and initial startup of building/process control systems, as well as control technology that doesn’t act upon processes in the spirit of the directive
• Procurement, installation and initial startup of industrial PCs and/or programmable logic controllers for operating building/process control systems

If the energy management software solution is integrated into a process/building control system, only the additional costs over and above those incurred for a control system without energy management functions are eligible for subsidization.

Who is subsidized:

• Private and municipal companies of all sizes and from all sectors including industry, commerce, the commercial trades, service providers and contractors
• Freelancers, if the business premises are used primarily on a freelance basis

BAFA Subsidy Programs

List of Products Eligible for Subsidization

• EMC Energy Management System
• Energy meters such as those included in the ENERGYMID series
• SMARTCONTROL and SU1604 summators
• CT300-330, CT200-230 and CT100-110 SC current transformers
• U1500 load optimizing system, BOSS operations optimizing system
• Multifunctional measuring instruments included in the AM/- SIRAX/-SINEAX series
• Unifunctional transmitters and measuring instruments for top-hat rail mounting such as the DM5000

Project Planning Support

GOSSEN METRAWATT provides you with support in preparing a measuring point concept and introducing and setting up an energy data logging system, as well as for the hardware required to this end and parameters configuration of the energy management software.

Need more information?

• Further details can be found on the website of the German Federal Office for Economic Affairs and Export Control. An application form can be accessed here.
• If you’re interested in loans and repayment subsidies offered by the KfW, complete information can be found here.

Reduced EEG levy (EEG §40 ff)

The EEG levy is used to finance ongoing further development of renewable energies. In principle, all electrical power consumers must pay the EEG levy, which is part of the price of electrical power. The German federal government wants to promote the international competitiveness of committed companies by offering an option for reducing the EEG levy.

Manufacturing companies whose electrical power costs account for at least 14% of gross value added (the so-called electricity cost intensity) can apply for a reduction or limitation of the EEG levy. The EEG levy is limited to 20% if electricity cost intensity is between 14 and 17%.

Furthermore, companies must consume at least one gigawatt hour (GWh) per year per location and are required to provide proof of certification in accordance with ISO 50001 if their consumption exceeds ten GWh in order to be eligible for the subsidy.

Peak Consumption Compensation (German electricity tax act § 10)

Already for quite some time now, energy-intensive manufacturing companies have been entitled to a refund for a portion of their electricity and energy taxes thanks to so-called peak consumption compensation. Proof of a company energy management system has been mandatory since the 1st of January, 2013. An energy audit in accordance with DIN EN 16247-1 is sufficient for small and medium-sized enterprises (SMEs). Peak consumption compensation is granted if the tax burden exceeds a basic allowance of €1000 per calendar year. The amount of the reduction depends on the difference between the electricity tax which exceeds the basic allowance and the (notional) reduction resulting from the fact that pension insurance contributions have fallen since the introduction of the electricity tax (for the general pension insurance scheme from 20.3% before the introduction of the electricity tax to currently 18.9%; with an employer contribution of 50%, this amounted to a reduction of 0.7% for employers in 2013 – the “differential amount”). No more than 90% of this difference is waived, refunded or recompensed. Based on this calculation formula, companies with high rates of electrical power consumption and few employees (for whom contributions to the public pension plan are required) benefit to an especially great extent from peak consumption compensation.