SME

Energy aid

Energy aid can be granted to climate- and environment-friendly investment and investigation projects that

  • promote the production or use of renewable energy;
  • promote energy savings or increase the efficiency of energy production or use;
  • reduce environmental damage caused by energy production or consumption.

Another purpose of energy aid is to support the introduction of new energy technology and its market entry.

For whom?

Energy aid may be granted to:

  • companies of all sizes, including self-employed persons and entrepreneurs and private entrepreneurs
  • communities, such as municipalities, parishes and foundations

Energy aid is not granted to:

  • housing companies
  • residential estates
  • farms or projects implemented in relation to farms
  • startup projects in receipt of state aid
  • government agencies and institutions

The following aspects will also be assessed (particularly in the case of investment projects):

  • the applicant is a 'firm in difficulty' as referred to in EU legislation (insolvent or has lost more than half of its share capital)
  • the company has tax arrears, is behind in its repayments of earlier Tekes loans, has a poor credit history, delayed payments or other neglected financial obligations
  • the project plan is missing or too vague
  • the company does not have the funding (own or external) required for the investment or the investigation

What?

Investments in renewable energy in 2017 (conventional technology)

  • Heating plant projects (wood-based fuels) 10–15%
  • Heat pump projects * 15%
  • Solar heat projects 20%
  • Small-scale hydropower projects 15–20%
  • Landfill gas projects 15–20%
  • Solar energy projects 25%
  • Biogas projects 20–30%
  • Small-scale wind power projects 20–25%

(* with the exception of waste heat recovery projects which fall under energy savings-related aid percentages).

Investments in energy savings and energy efficiency in 2017 (conventional technology):

  • 20% for companies and organisations that have signed an energy efficiency agreement
  • 25% when an energy service company (ESCO) is used in the above.
  • 15% for companies and organisations that have not signed an energy efficiency agreement but use an ESCO

Augmented aid (20–40%) is granted on a case-by-case basis for projects that involve new technology, even for companies and municipalities that have not signed an energy efficiency agreement

Energy audits:

According to the Government Decree on General Terms of Granting Energy Support (1063/2012), the energy aid may cover the following shares of eligible costs at most:

  • 60% of renewable energy audit costs in the municipal sector
  • 50% of energy audits in the municipal sector and in micro, small and medium-sized enterprises
  • 40% of other energy audits, analyses and investigation projects

New technology projects:

New technology refers to technology that has not been previously used on a commercial scale in Finland

  • 40% of renewable energy source and energy efficiency investments at most

Restricted aid or no aid granted:

  • aid will not be granted for heating plants whose heat output exceeds 10 MW
  • aid will not be granted for heat generation projects if the result of the project is a shift from district heating to separate heat generation
  • at least 50% of the fuel of heat plants must come from renewable energy sources
  • aid will not be granted for energy efficiency or heat pump projects included in new construction projects (with the exception of new technology)
  • aid will not be granted for the procurement of wood-based and recycled fuel production equipment, including chippers, crushers, wood chip containers and other equipment (with the exception of new technology)
  • aid will not be granted for waste incineration plant projects
  • aid will not be granted for street lighting projects involving conventional technology. In the case of other lighting projects, aid will not be granted for replacing traditional light sources, unless the entire lighting system is renewed at the same time
  • aid will not be granted for the energy audits of large companies
  • ordinary business establishment, expansion, profitability, development, planning, marketing or testing projects are ineligible for this aid
  • aid will not be granted for investments under EUR 10,000
  • in general, energy aid will not be granted to projects that fall under the Emissions Trading Act (311/2011)

Energy aid may be granted for new construction projects for solar energy.

Wind power projects may be granted aid if the company or organisation has signed an energy efficiency agreement and invests in small-scale wind power (nominal output of 2–20 kW). If the small-scale wind power project receives aid, it may not feed commercial electricity into the power distribution network.

Biogas projects may be granted aid for biogas reactors, boilers, motors or turbines that only produce heat and remain under the feed-in tariff output limit (100 kW), or produce biogas for use in transportation. The use of biogas for transport purposes will be assessed, for the time being, by the Ministry of Economic Affairs and Employment (MEAE).

Aid will not be granted for biogas projects on farms or for projects whose sole purpose is to meet environmental requirements.

In case of a joint procurement project it is necessary to contact the team of energy experts before submitting the application.

Applicants should remember that aid is always discretionary!

How to apply for energy aid from Tekes

Energy aid applications should be addressed to Tekes from the beginning of 2017. The call for applications is constantly open.

The processing, decision-making and management of energy aid were transferred from ELY Centres to Tekes at the beginning of 2017. In 2017, new energy aid applications should be submitted to Tekes. Applications should be submitted through Tekes's Online Service from 26 January 2017 onwards.

Energy support for investment projects must be applied for before the acquisition of fixed assets or before the commencement of the construction, alteration or improvement work funded by the support. Making the final and binding investment decision is considered the commencement of the work.

Energy support for investigation projects must be applied for before initiating the project. Making a binding order is considered the initiation of the project.

When a company or organisation has a plan for an investment to increase the use of renewable energy and energy savings, or plans to conduct an energy audit in order to determine where it could save energy, it is advisable to discuss the matter with Tekes's energy aid team. Their contact details are listed at the end of this text.

Applications should be sent through Tekes's Online Service. Via the service, you can monitor the processing of the application and complete it if necessary. Processing of the application typically takes around two months.

The applicant must name a responsible manager for his energy investment project, which is from the applicant's organization. The project will also be named a contact person who can be from the applicant's organization or from another organization selected by the applicant.

The application must include:

Please also read the energy aid project plan instructions (pdf)

Eligible project costs include:

  • wages and salaries allocated to the project in accordance with work time monitoring
  • indirect personnel costs
  • overheads (only in investigation projects)
  • travel expenses
  • costs of materials and supplies
  • equipment purchases
  • purchased services

The more carefully the application is made, the faster it will be processed. For this reason, investments should take account of issues such as the project's contents, its itemisation, changes in energy production, the generation of emissions, and the assessment of the investment's profitability e.g. by making a repayment period calculation.

The applicant should carefully read the General terms and conditions for energy support (pdf) that, for example, describe the eligible costs in detail.

After the funding decision

Upon receipt of the decision, the applicant must return the signed announcement of acceptance (Y1) through the Tekes' Online Service, otherwise the decision will not take effect and the subsidy can not be paid!

The announcement of acceptance is signed by the applicant with an official procuration (prokura).

After the investment or investigation is completed, the applicant should report and declare the project costs through Tekes' Online Service.

In a project of a maximum of five proofs of purchase (travel expenses, material and supplies costs, equipment purchases, and purchased services), the auditor's report may be replaced by including in the cost statement an extract of project accounting from the general ledger, a copy of purchase invoices as well as the payment receipt or a bank statement indicating that the invoices are paid. However, an auditor’s report shall be delivered every time that wages/salaries or purchases are declared to the project from inside the group or an associated company.

In the case of investigation projects, the receiver of the funding must submit target-specific audit reports and summary tables (paataulu.xls or kuntataulu.xls) to Motiva Oy before the project’s final report and accounting. Learn more about the progress of review projects on Motiva's pages here.

Ongoing projects (recipients of energy aid in 2016 and earlier)

Energy aid projects launched in 2016 or earlier (submitted on paper forms) that were granted aid by an ELY Centre should address their reports and notify any changes to their respective ELY Centre. The KEHA-Centre is in charge of aid payments for such projects.

You can ask for instructions from Markku Alm, Southwest Centre for Economic Development, Transport and the Environment, markku.alm(at)ely-keskus.fi, tel. +358 400 864945

Get in touch

Tekes' energy aid team

  • Markku Mäkelä (Product Manager), tel. +358 2950 55247, Lahti
  • Timo Fager, tel. +358 2950 55210, Tampere 
  • Riitta Ketomäki, tel. +358 2950 55233, Seinäjoki
  • Tapani Saarenpää, tel. +358 2950 55271, Seinäjoki 
  • Mikko Tapojärvi, tel. +358 2950 55277, Oulu
  • Erkki Väisänen, tel. +358 2950 55285, Helsinki

Our email addresses are in the form firstname.surname@tekes.fi