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Cyplan® ORC at night
Cyplan® ORC plant Groß Gerau

Promotion program KfW 295: Energy Efficiency

At the beginning of the year, the KfW Energy Efficiency Program "Waste Heat Investment Protection (294 and 494)" was passed and replaced by the new KfW "Energy Efficiency in Economy" program (295) and slightly modified.

As a result, commercial and municipal companies and self-employed persons are now eligible to apply, regardless of their turnover size. The advantage of the new funding program has recently also been for medium-sized companies, which receive a subsidy for qualified energy advice within the framework of the "Energy Consulting Mittelstand" of the Federal Ministry for Economic Affairs and Energy (BMWi). In addition, the costs of drawing up an energy saving concept and the accompanying implementation are eligible for support from external energy consultants. The condition is that the payback period of the project without claiming promotion of the waste heat recovery measure, as is the case with the Organic Rankine Cycle, must be more than two years. The aim of this funding program is:

The promotional product Energy Efficiency and Process Heat from Renewable Energies in Wirtschaft-Kredit supports measures to save energy and reduce carbon dioxide emissions in Germany through low-interest loans from KfW in conjunction with attractive repayment subsidies from the Federal Ministry of Economic Affairs and Energy. (Building energy consultant, 15.11.18).

Alternatively, there is an investment grant if the funding conditions are met. In the case of the ORC (Organic Rankine Cycle), which belongs to Module 4 Energy-related Optimization of Plants and Processes, the maximum subsidy is EUR 500 per saved ton of CO2 and year. For SMEs the amount is limited to EUR 700 per tonne of CO2 and year saved. The subsidized costs also include ancillary costs for planning, installation and assembly. In summary, the additional costs can account for up to 30% of the investment costs, for SMEs even 40%.

To illustrate the bonus, here is an example calculation based on a 120 HT CHP:

Install. Power: 120 kW
Operating hours: 8000h/a
Electricity production: 120kW * 8000h/a = 960.000kWh/a at 960 MWh/a
CO2 factor (domestic electricity): 0.537 tCO2/MWh
CO2 avoided: 0,537 tCO2 / MWh * 960 MWh/a = 515,52 tCO2/a
SMEs: 700€ / tCO2
not SMEs: 500€ / tCO2
Max. Funding volume: 515.52 tCO2/a * 700 € / tCO2 = 360,864 € (avoided by CO2)
Exemplary project costs: 600,000 € (40% à 275,000 €) 40% capped on CO2 savings

For a project, as described here, the 40% funding is  275,000€