Federal Funding for Energy and Resource Efficiency in the Economy (EEW)

EEW — Federal Funding for Energy and Resource Efficiency

Supports German industrial firms pursuing energy efficiency modernization and decarbonization planning.

The Federal Funding for Energy and Resource Efficiency in the Economy (EEW — Bundesförderung für Energie- und Ressourceneffizienz in der Wirtschaft) is a rolling investment grant programme administered by Germany's Federal Office for Economic Affairs and Export Control (BAFA) for businesses of all sizes operating in Germany. Applications are accepted year-round through the BAFA portal and must be submitted before any eligible measure begins; retroactive claims are not accepted. The programme covers six modules: Module 1 funds cross-sectional technologies such as energy-efficient motors, pumps, fans, compressors, and lighting; Module 2 funds process heat generation from renewable energies in industrial settings; Module 3 covers measurement, control, and energy management software and sensors; Module 4 funds systems and process optimisation with a maximum grant of €20 million per application; Module 5 funds transformation concepts and decarbonisation plans; and Module 6 targets electrification measures for small companies, including heat pump installations. The programme reopened on 15 February 2024 after a temporary pause caused by the 2023 German federal budget freeze.

All businesses registered and operating in Germany are eligible regardless of company size, sector, or legal form. For-profit companies of any scale qualify; universities, research institutes, and individuals do not. Grant funding rates vary by module and company size: Module 4 rates range from 25% for large companies to 45% for small companies on eligible investment costs, with premiums tied to CO₂ savings (up to €2,600 per tonne of CO₂ avoided annually for small companies). Module 5 covers 40–60% of external consulting costs (capped at €60,000 standard or €90,000 for Energy Efficiency Network members) at rates of 60% for small, 50% for medium, and 40% for large companies. Most modules are subject to an annual cap of €10 million per company; Module 4 permits individual applications up to €20 million.

Applicants must register and submit through the BAFA portal before any measure commences, as the ex-ante requirement is strictly enforced. Module 4 and Module 5 projects require that a federally listed energy consultant prepare the savings concept or transformation plan. Module 5 multi-site companies must submit a separate transformation plan and application for each location. Once an application is approved, companies may proceed with the measure and subsequently claim reimbursement. Strong applications clearly quantify projected energy and CO₂ savings, demonstrate that measures go beyond regulatory minimum standards, and are backed by a consultant-prepared technical concept that aligns with BAFA's eligible-cost categories.