Country:Germany
Year:1999
Policy status:In Force
Jurisdiction:National
Date Effective:1999
Policy Type:Research, Development and Deployment (RD&D)>Research programme >Technology deployment and diffusion, Economic Instruments>Fiscal/financial incentives, Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Economic Instruments>Fiscal/financial incentives>Loans
Renewable Energy Policy Targets:Solar Thermal, Bioenergy, Biomass for heat, Bioenergy, Biomass for power, Geothermal, Heat, Geothermal, Power
Policy Sector:Heating and Cooling
Size of Plant Targeted:Small and Large
Climate Change Policy Targets:Energy Sector, Electricity Generation, Renewable
Agency:Kreditanstalt für Wiederaufbau (KfW)
URL:http://www.bafa.de
Legal References:Bundesanzeiger, March 21 2011
Evaluation:www.erneuerbare-energien.de/files/pdfs/allgemein/application/pdf/evaluation_map_2010.pdf
Energy Efficiency Description:

As a successor of the "100 Million Programme," the Market Incentive Programme (Marktanreizprogramm), was introduced in 1999. Initially an annual budget of EUR 100 million was allocated over 5 years.

For several reasons it was not possible to exempt renewable energy power plants from the eco tax. As such, it was decided to use the income from the eco tax for supporting the further development of renewable energy technologies. The annual starting-budget therefore reflected the estimates of additional eco tax revenue from renewable energy power plants. In 2005, approximately one third of the calculatory revenue from the taxation of electricity from renewables, amounting to EUR 659 million, went into the Programme.

The Programme primarily serves the expansion of heat generation from biomass, solar power and geothermal energy.

Smaller installations of private investors are supported with grants; the administration (designating appliances, payment etc.) of this part of the programme is handled by the Federal Office of Economics and Export Control (BAFA). Larger installations are supported with loans at a reduced rate of interest and partial debt acquittal (Low-interest loans and debt release are the responsibility of the Kreditanstalt für Wiederaufbau, KfW). In the residential sector, the focus of the policy is on the promotion of solar thermal collector systems and biomass heaters (pellet systems and wood gasification boilers). Furthermore, plants which utilise solid biomass and geothermal energy are supported, in part with district heating systems.

Over the course of the programme, the support guidelines were repeatedly adjusted. Grants are restricted to solar thermal applications and to heating systems that use solid biomass. If innovative technologies are used, an additional bonus is provided. Loans are available for geothermal heating stations, geothermal power stations, large biomass systems, and large solar thermal applications.

As a result of the high demand for funding, the BAFA-part of the support programme had to be suspended temporarily in 2010 from May to the start of July, since the funds allowed by budget legislature were insufficient. When the programme resumed on 12 July 2010, after additional finance was made available by the German Bundestag's Budget Committee, several eligibility criteria for support were removed. Installations that are no longer eligible for funding include air-regulated pellet heating systems, solar collector systems used solely for heating hot water and systems installed in new buildings.

With effect from 15 August 2012 the support guidelines of the programme were modified, among other measures introducing new minimum rates for solar collectors, biomass boilers and heat pumps as well as expanding the bonus scheme for highly innovative technologies.

Renewable Energy Description:

As a successor of the "100 Million Programme," the Market Incentive Programme (Marktanreizprogramm), was introduced in 1999. Initially an annual budget of EUR 100 million was allocated over 5 years.

For several reasons it was not possible to exempt renewable energy power plants from the eco tax. As such, it was decided to use the income from the eco tax for supporting the further development of renewable energy technologies. The annual starting-budget therefore reflected the estimates of additional eco tax revenue from renewable energy power plants. In 2005, approximately one third of the calculatory revenue from the taxation of electricity from renewables, amounting to EUR 659 million, went into the Programme.

The Programme primarily serves the expansion of heat generation from biomass, solar power and geothermal energy.

Smaller installations of private investors are supported with grants; the administration (designating appliances, payment etc.) of this part of the programme is handled by the Federal Office of Economics and Export Control (BAFA). Larger installations are supported with loans at a reduced rate of interest and partial debt acquittal (Low-interest loans and debt release are the responsibility of the Kreditanstalt für Wiederaufbau, KfW). In the residential sector, the focus of the policy is on the promotion of solar thermal collector systems and biomass heaters (pellet systems and wood gasification boilers). Furthermore, plants which utilise solid biomass and geothermal energy are supported, in part with district heating systems.

Over the course of the programme, the support guidelines were repeatedly adjusted. Grants are restricted to solar thermal applications and to heating systems that use solid biomass. If innovative technologies are used, an additional bonus is provided. Loans are available for geothermal heating stations, geothermal power stations, large biomass systems, and large solar thermal applications.

As a result of the high demand for funding, the BAFA-part of the support programme had to be suspended temporarily in 2010 from May to the start of July, since the funds allowed by budget legislature were insufficient. When the programme resumed on 12 July 2010, after additional finance was made available by the German Bundestag's Budget Committee, several eligibility criteria for support were removed. Installations that are no longer eligible for funding include air-regulated pellet heating systems, solar collector systems used solely for heating hot water and systems installed in new buildings.

With effect from 15 August 2012 the support guidelines of the programme were modified, among other measures introducing new minimum rates for solar collectors, biomass boilers and heat pumps as well as expanding the bonus scheme for highly innovative technologies.

Climate Change Description:

As a successor of the "100 Million Programme," the Market Incentive Programme (Marktanreizprogramm), was introduced in 1999. Initially an annual budget of EUR 100 million was allocated over 5 years.

For several reasons it was not possible to exempt renewable energy power plants from the eco tax. As such, it was decided to use the income from the eco tax for supporting the further development of renewable energy technologies. The annual starting-budget therefore reflected the estimates of additional eco tax revenue from renewable energy power plants. In 2005, approximately one third of the calculatory revenue from the taxation of electricity from renewables, amounting to EUR 659 million, went into the Programme.

The Programme primarily serves the expansion of heat generation from biomass, solar power and geothermal energy.

Smaller installations of private investors are supported with grants; the administration (designating appliances, payment etc.) of this part of the programme is handled by the Federal Office of Economics and Export Control (BAFA). Larger installations are supported with loans at a reduced rate of interest and partial debt acquittal (Low-interest loans and debt release are the responsibility of the Kreditanstalt für Wiederaufbau, KfW). In the residential sector, the focus of the policy is on the promotion of solar thermal collector systems and biomass heaters (pellet systems and wood gasification boilers). Furthermore, plants which utilise solid biomass and geothermal energy are supported, in part with district heating systems.

Over the course of the programme, the support guidelines were repeatedly adjusted. Grants are restricted to solar thermal applications and to heating systems that use solid biomass. If innovative technologies are used, an additional bonus is provided. Loans are available for geothermal heating stations, geothermal power stations, large biomass systems, and large solar thermal applications.

As a result of the high demand for funding, the BAFA-part of the support programme had to be suspended temporarily in 2010 from May to the start of July, since the funds allowed by budget legislature were insufficient. When the programme resumed on 12 July 2010, after additional finance was made available by the German Bundestag's Budget Committee, several eligibility criteria for support were removed. Installations that are no longer eligible for funding include air-regulated pellet heating systems, solar collector systems used solely for heating hot water and systems installed in new buildings.

With effect from 15 August 2012 the support guidelines of the programme were modified, among other measures introducing new minimum rates for solar collectors, biomass boilers and heat pumps as well as expanding the bonus scheme for highly innovative technologies.

Related policies:National Energy Action Plan (NREAP)

Last modified: Mon, 12 May 2014 16:19:36 CEST