Towards a low-carbon energy system through energy efficiency

You can apply for energy aid if your organization has not yet launched the project for which you are applying for aid. Your organization must be planning an investment or auditing project related to energy savings with investment costs of at least EUR 10,000 (energy-efficiency investment) or EUR 30,000 (renewable energy investment with new technology and other low-carbon investments). The upper size limit for the project in terms of costs is EUR 5,000,000.

You want to promote the production and use of renewable energy (new technology projects only)

• The planned investment is voluntary and aims to significantly increase the volume of renewable energy production or achieve other significant positive energy impacts in accordance with a set target, and the investment represents new technology.

You want to promote energy saving or more efficient production or use of energy

• Your organization wants to implement an investment or research project to promote energy savings.
  
  BUT is not intended to fulfill a mandatory environmental obligation and is not a mandatory energy audit that companies must carry out under the Energy Efficiency Act (1429/2014).

Energy aid can be used for

• Investment projects that invest in fixed assets.
• Energy audits, which include Motiva-type energy audits, Targeted audits, Municipal audit renewable energy and In-depth studies

New technology is prioritized

Priority is given to projects involving new technology. New technology refers to new commercial solutions that have not been used in Finland before and that play an important role in achieving energy and climate goals. Typically, this is the first or among the first commercial implementations. The adoption of new technology usually entails extra costs or risks compared to a corresponding project implemented using conventional technology.

Conventional technology projects can also be supported on a discretionary basis, with priority given to well-prepared projects and carefully prepared applications.

Aid for new technologies may be increased on a case-by-case basis. The need for and level of increased aid will be assessed on a case-by-case basis, considering the risk involved in introducing new technology and the associated profitability analysis. This means that the amount of aid granted to a new technology project is often lower than the maximum aid mentioned in the Energy Aid Regulation.

For new technology projects, we may ask the applicant to provide an independent opinion on the project’s novelty, if the funder considers it necessary to verify that the project is novel.

For SMEs, the maximum level of aid is 40% for new technology projects. For large companies, the corresponding maximum level of aid is 30%.

Renewable energy investments in 2024: New technology investment projects only

• In renewable energy projects, only new technology is eligible for aid.
• The need for and level of aid are assessed on a case-by-case basis.
• For large corporations, the maximum level of aid is 30% also for new technology projects.
• Investments related to refining, liquefying, transporting, distributing, or using biogas will only be eligible for aid if accompanied by an investment in new reactor capacity. Investments in expanding existing biogas plants are only eligible for aid if the digester gas and biogas production capacity increases. In biogas projects, the applicant must submit a plan for further processing and use of digestate.
• In biogas projects, fuel filling stations are not eligible for aid (this also applies to other biofuels).
• In biofuel projects, aid may only be granted for plant projects that do not use saw timber or pulpwood suitable for processing as raw material.

Investments promoting energy savings and energy efficiency in 2024: Conventional technology

Auditing and survey projects

• Motiva-type energy audits in the municipal sector, micro-enterprises and SMEs related to energy efficiency agreements, 50%
• other Motiva-type energy audits not related to energy-efficiency agreements for the above-mentioned entities: 40%
• Motiva’s Targeted Review, support percentages as above
• • In-depth studies of large companies related to energy efficiency agreements 40 %.

Investment projects

• 20% for companies and communities that have entered into energy efficiency agreements.
• 25% when the ESCO service is used in the above.
• 15% for companies and communities other than those that have entered into energy efficiency agreements when the ESCO service.

Energy aid is not granted for the following projects

• Investments in renewable energy using conventional technology are not eligible.
• Energy investments for new buildings are not eligible for aid, except for new technology projects.
• Housing companies, residential properties, or farms, or projects carried out in connection with them, are not eligible for energy support.

Energy efficiency projects

• Energy efficiency projects related to buildings and their technical building systems are not eligible, except for new technology projects.
• Heat pumps exceeding 1 MW are not eligible in energy efficiency projects, with the following exceptions:
  • A new technology project, heat pumps exceeding 1 MW are eligible
  • A project to be connected to a low-temperature network.
  • When the heat pumps use surplus heat as an energy source, aid may be granted for heat pumps with a capacity of up to 5 MW even if the technology used in the project is conventional. In the case of new technologies, it is also possible to support heat pump projects with a capacity of more than 5 MW.
• Exhaust gas scrubbers or related heat recovery investments are not eligible if they are related to emissions trading plants or heating plants with power ratings exceeding 10 MW.
• Lighting-related conventional technology projects are not eligible (incl. LED lights, etc.).
• Insulation or alterations to the exterior cladding of buildings (including doors and windows), lids and doors of refrigeration equipment, weather or rain shelters, and similar applications are not eligible.
• Energy efficiency projects carried out in new buildings are not eligible.

The aid is not granted to the following operators

• Housing companies*
• Residential properties* (including care properties)
• Farms or projects implemented in connection with farms, except for projects in farms where the energy produced is used outside of agricultural production (a farm cannot be an applicant regardless)
• Fisheries and aquaculture enterprises; incl. processing companies
• Establishment projects receiving state subsidies
• Organizations whose operation is financed from state budget
• Agencies, institutions and other bodies belonging to a financial management organization referred to in the State Budget Act (423/1988)

Ensure sufficient self-financing

• Your company must have sufficient financing of its own for the implementation of the project. Adequate financing means that your company can cover the expenses of the entire project before it receives the grant disbursement from Business Finland.
• Business Finland may grant Energy Aid to projects with investment costs of at least EUR 10,000 (energy efficiency investments) or EUR 30,000 (other energy investments, such as renewable energy). The upper size limit for the project in terms of costs is EUR 5,000,000.

Get the following financial matters in order

We cannot grant your company funding if:

• your company is insolvent or has lost half its share capital
• your company has arrears, payment defaults or other outstanding financial obligations from previous Tekes or Business Finland loans.
• your company does not have other (own or external) funding required for the investment or investigation

Read more about the funding terms and conditions

The funding terms and conditions describe the costs that Business Finland can fund, how we monitor your project costs, and how you should report on the progress of your project.

Read more about the funding terms and conditions

Send your application and attachments via our online service. You can also keep track of the processing of your application in the online service. The applicant must appoint a director from its organization for the energy investment project. A contact person, who can be from the applicant's organization or from some other organization of the applicant's choice, must also be appointed for the project.

Go to the online service

Append to your application

APPENDIX 1: Appendix to an investment project application (Motiva-type energy audit and Targeted audit)
APPENDIX 2: Project plan (all energy aid applications)
APPENDIX 3: Appendix to an In-depth study project (In-depth study applications only)

Submit a project plan as part of the application. Attach the project plan as a separate file to the application. We cannot grant your company funding, if the project plan does not exist or is vague.

The project plan must contain at least the following information:

• A description of your organization’s operations, ownership, key performance indicators, and description of the property or production process being invested in (address, purpose, year of construction)
• A description of the investment, a technical specification at least for the main equipment/equipment groups, and a cost breakdown. Just the total amount or total price of the tender is not sufficient!
• The goals of the investment with numerical values and a profitability calculation (repayment period)
• Information on the status of the governmental permits related to the investment (e.g., do you have a building permit or an environmental permit, etc., or have you initiated the process to obtain it?)

Eligible costs

Business Finland accepts the costs at the earliest from the date of the financing decision. Aid is not granted for projects launched before the aid decision is made.

Costs eligible for an investment project include:

• Purchase, installation, and commissioning costs of machinery and equipment
• Building costs (only in applications for large-scale demonstration projects involving new energy technology)
• Earthwork and acquisition of land
• Preparation and planning costs
• Specific monitoring costs (ESCO)
• Possible costs of an auditor’s report

The beneficiary’s own salaries are not eligible in investment projects.

As a rule, to ensure the effectiveness of the funding, only procurements and work ordered or agreed upon in writing after making the funding decision are eligible for the project. Procurements ordered for the project before making the energy aid funding decision are only eligible if there is a condition in the order agreement or deed of sale that the procurement is canceled if the funding decision is negative. Even then, costs are only eligible from the date of the funding decision.

If the customer has an extensive investment project under way, the customer can apply for energy aid for a related, limited new technology or energy efficiency project if it has not yet been launched and it has thus incurred no costs.

Nothing prevents granting energy aid to cover costs arising as of the date of the funding decision if clearance and earthwork connected with the investment project have already started before the funding decision was made.

The following costs cannot be accepted as investment project costs:

• salary and indirect personnel costs
• travel expenses of the beneficiary
• overheads
• entertainment costs
• banking and financial costs
• voluntary personal insurance
• costs subject to public support, the terms of which prohibit other public support (including the wage costs of a person who has received a start-up grant for the same period)
• wage costs for which pay subsidies have been received
• services involving other public support
• financial, administrative, insurance, repair, maintenance or similar expenditure in respect of purchases made under an installment purchase transaction
• the cost of purchasing office equipment, cars and other similar durable goods
• costs not related to the implementation of the project
• cost reserves
• connection fees and fees based on the Act on Criteria for Charges Payable to the State (150/1992)

In auditing type projects, eligible costs include:

• the salaries allocated to the project in accordance with the working time monitoring
• indirect personnel costs
• travel expenses
• supplies and equipment and machinery rentals
• purchased services
• possible costs of an auditor’s report

Project schedule

The schedule mentioned in the grant decision must be respected. If the schedule needs to be changed, submit a project change application.