Funding for Power-to-Heat Systems

Electrifying process heat means investing in new equipment and infrastructure. Funding programs at EU level, as well as from national and regional governments, can cover part of these costs — improving the business case for power-to-heat systems and thermal energy storage. Which programs are the right fit depends on your technical requirements, the scope of your project and the CO₂ savings you're aiming for.

Funding Programs at EU Level

EU Heat Auction

The EU Heat Auction is a funding instrument under the European Innovation Fund aimed at decarbonizing industrial process heat. It supports projects that replace fossil-based process heat with electrified or directly renewable heat technologies. Funding is awarded through a competitive auction process.

Who is eligible?

  • Small, medium-sized and large companies across all industrial sectors
  • Projects within the European Economic Area (EU member states, Iceland and Norway)

What is funded?

Funding supports projects that decarbonize industrial process heat, for example through:

  • Prozess- und VerfahrensumIndustrial heat pumps
  • Electric boilers and steam boilers
  • Resistance, induction and plasma technologies
  • Solar-thermal and geothermal process heat
  • Combinations of different electrification and heat technologies

Funding amount

Funding is paid as a premium for every tonne of CO₂ avoided. In the auction, companies state how much funding their project needs, and support is awarded competitively based on the bids submitted.

  • Budget for the current auction round: 1 billion euros
  • Funding period: up to five years after the project is commissioned

Deadlines


The EU Heat Auction runs through individual bidding rounds. The European Commission publishes details of current and upcoming calls as part of the Innovation Fund.

Key requirements

  • Demonstrable CO₂ reduction potential
  • Technical and economic feasibility of the project
  • Sufficient project and investment maturity

Funding Programs in Germany

BAFA Module 4: Energy- and Resource-Related Optimization of Plants and Processes (Premium Funding & Decarbonization Bonus)

BAFA Module 4 is part of Germany’s Federal Funding for Energy and Resource Efficiency in Industry (EEW). It’s designed for companies looking to cut their energy use, resource consumption and greenhouse gas emissions through technical upgrades to their production and process plants.

Who is eligible?

  • Small, medium-sized and large companies across all sectors with an operating site in Germany

What is funded?

Eligible measures include, among others:

  • Process and procedural changes that boost energy and resource efficiency
  • Measures to recover and reuse waste process heat
  • Measures to improve the energy and resource efficiency of heating, cooling and ventilation systems
  • Measures for the energy- and/or resource-efficient supply of process heat or process cooling
  • Measures to prevent energy and resource losses in the production process
  • Measures to replace fossil fuels with renewable energy sources
  • Measures to electrify processes

Funding amount

Funding is provided as a grant towards eligible investment costs. The amount depends on company size, the project itself and the funding option you choose.

  • Small companies: up to 45%
  • Medium-sized companies: up to 35
  • Large companies: up to 25%
  • Decarbonization bonus: For selected measures relating to waste heat recovery, electrification, and the production and use of hydrogen, the funding rate can be increased by up to 10 percentage points.
  • Maximum grant: Up to 20 million euros can be applied for in total across related measures.

Deadlines


Applications can be submitted at any time under the EEW funding guideline currently in force. As things stand, the funding period runs until 31 December 2028.

Key requirements

  • Applications must be submitted before the project begins
  • A savings concept must be drawn up
  • The investment must be carried out in Germany
  • The annual greenhouse gas savings potential is at least 30 percent.

and/or

  • The annual greenhouse gas savings potential reaches at least:
  • 1,000 tonnes of CO₂ equivalent for large companies
  • 300 tonnes of CO₂ equivalent for medium-sized companies
  • 100 tonnes of CO₂ equivalent for small companies

Passt unsere Power-to-Heat-Lösung zu Ihnen?

So unterstützen wir Sie bei der Elektrifizierung:

Warum Sie jetzt handeln sollten

Wärme zählt zu den größten Betriebskosten in der Industrie. Wir machen daraus eine steuerbare Kostenbasis mit geringerem Risiko – und einen messbaren Mehrwert. Prozesswärme ist damit nicht länger nur ein Kostenfaktor, sondern ein aktiv steuerbares Asset.

Erschließen Sie neue Mehrwerte

Flexibilität wird zur Einnahmequelle.
Ihr Wärmespeicher wird zu einem Netzelement und erzielt zusätzliche Erlöse über Regelenergie- und Flexibilitätsmärkte – ohne Auswirkungen auf die Produktion.

Übernehmen Sie die Kontrolle über Ihre Wärmekosten

Stabilisieren Sie Ihre Kostenbasis.
Elektrifizieren Sie Prozesswärme ausschließlich dann, wenn Strom günstiger ist als Gas, und speichern Sie sie für den späteren Einsatz – so verringern Sie die Abhängigkeit von volatilen Brennstoff- und CO₂-Preisen.

Strategisch kompatibel: Wie ENERGYNEST Ihre bestehende Energiestrategie ergänzt

Unabhängig davon, ob Sie langfristige Gaslieferverträge haben oder erst kürzlich Anlagen in Betrieb genommen wurden – ENERGYNEST passt sich Ihrem Elektrifizierungspfad an. Der modulare Ansatz ermöglicht eine schrittweise Umsetzung:


  • Sofortige Absicherung: Beginnen Sie heute damit, rund 30 Prozent Ihres Gaspreisrisikos abzufedern.
  • Verlängerte Anlagenlaufzeiten:  Reduzieren Sie die Auslastung Ihrer Gaskessel, verlängern Sie deren Lebensdauer und senken Sie zugleich CO₂-bedingte Kosten.
  • Marktflexibilität: Wechseln Sie je nach aktuellem Preissignal zwischen elektrischer Wärme und Gas-Backup – als wirksame Absicherung gegen volatile Energiemärkte.

Together with tesa, we are implementing a large-scale power-to-heat plant with integrated heat storage in Hamburg, which will provide a significant portion of the energy-intensive process steam generation in a climate-neutral manner in the future.

Together with LEONHARD KURZ, we are implementing a power-to-heat system with thermal storage in Germany – in order to reduce emissions and promote the decarbonization of industry.

Are you interested in ENERGYNEST, or have any questions regarding our thermal energy storage solutions or our applications for your specific industry?

 

Don’t hesitate to drop us a line.