Policy status:In Force
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
Policy Target: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
Agency:Kreditanstalt für Wiederaufbau (KfW)
Legal References:Bundesanzeiger, March 25 2015

The Market Incentive Programme (Marktanreizprogramm), was introduced in 1999. As of today an annual budget of over EUR 300 million is available which has grown over the past years.

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

Smaller installations of priva.te 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, heat pumps 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, heat pumps 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, large biomass systems, and large solar thermal applications.

With effect from 25 March 2015 the support guidelines of the programme were modified, among other measures introducing new output-based rates for solar collectors, new minimum rates for 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: Wed, 10 May 2017 16:01:33 CEST