Energy Funding under the Hessian Energy Act

The funding guideline for energy funding in Hesse targets a wide range of applicants who wish to implement projects to increase energy efficiency and the use of renewable energies throughout the state. This includes natural and legal persons, municipal bodies and their associations, small and medium-sized enterprises, and scientific and educational institutions. The main goals are to cover final energy consumption from renewable sources by 2050, increase the renovation rate, and limit climate change-related impacts to ensure a secure, environmentally friendly, and affordable energy supply.

The funding program supports a variety of measures and projects to increase energy efficiency and utilize renewable energies in Hesse. This ranges from investment measures in municipalities and businesses to the development of innovative energy technologies, the creation of comprehensive energy concepts, and measures for energy consulting and qualification training. Specific focuses include supporting pilot and demonstration projects, expanding energy efficiency networks, and implementing integrated district concepts for the energy transition.

Funding under the Hessian Energy Act is primarily provided as a non-repayable grant, the amount of which varies depending on the project and applicant and can reach up to 100 percent of eligible expenses. For projects in rental housing construction, interest or repayment subsidies on loans are also possible. The minimum funding amount is typically 5,000 Euros, for ERDF-co-financed projects 25,000 Euros, and project durations are generally limited to one to three years but can be longer if a commitment period of up to 15 years is required for investments.

The granting of funding under the Hessian Energy Act is subject to comprehensive conditions, ranging from legal prerequisites and aid regulations to specific requirements for application and project implementation. These include compliance with procurement regulations, the prohibition of premature start of measures, and adherence to EU state aid rules such as the General Block Exemption Regulation (GBER) and the De minimis Regulation. Projects must also contribute to the successful implementation of the energy transition in Hesse and demonstrate economic efficiency.

Applications for funding under the Hessian Energy Act must be submitted to the Wirtschafts- und Infrastrukturbank Hessen (WIBank) before the start of the project. For certain projects, especially innovative energy technologies and municipal energy concepts, a project outline must first be submitted to the Hessian Ministry for Economic Affairs, Energy, Transport and Housing for technical evaluation. The selection of projects is discretionary within the framework of available budget funds, and the disbursement of funds generally takes place retrospectively after verification of the proof of use.

Energy funding in Hesse is based on the guidelines of the State of Hesse for the Hessian Energy Act (HEG) of October 9, 2019, last amended on November 1, 2023. These guidelines define the objectives, content, and general funding provisions. Additionally, the funding is supported by the European Regional Development Fund (ERDF), whose legal bases are provided by EU regulations and the Operational Program for Hesse. The program is subject to the Hessian Subsidy Law and the provisions of the Hessian State Budget Code (LHO).