Major update of the terms and conditions of the Energy Savings Call

The Ministry of Industry and Trade announced some changes that affected the wording of the conditions for applicants for subsidies under the Call I for Energy Savings. The call was announced at the beginning of September 2022. Applications for support can be submitted until 30 November 2023. The planned allocation of the call is CZK 10 billion, and so far, applications worth CZK 1.3 billion have been registered.

What can be supported:

The aim of the call is to reduce the level of final energy consumption of the Czech Republic and to meet the goals in relation to the renovation and construction of business buildings.

What expenditures can be supported:

  • Reducing the energy consumption of buildings – insulation, replacement of windows, reconstruction of heating systems, modernisation of lighting systems, use of waste energy
  • Reconstruction, modernisation or replacement of energy production equipment, e.g. replacement of boilers, installation of a heat pump, etc.
  • Replacing technologies with more energy-efficient ones
  • Reconstruction of electricity, gas and heat distribution systems to increase efficiency
  • Regulation of consumption and implementation of energy metering and control systems
  • Installation of renewable energy sources for the company’s own consumption, including the storage of electrical and thermal energy or cold – this may include, for example, the installation of a photovoltaic plant, the installation of water heating systems or biomass systems

Who may apply for the subsidy: Small, medium and large enterprises

Place of implementation: The whole territory of the Czech Republic, excluding Prague

Subsidy rate: Between 35% and 65% according to the region of implementation and enterprise size.

Subsidy amount: The minimum amount of support is CZK 500 thousand; the maximum amount is CZK 200 million.

The wording of the conditions of the call was modified after several months of collecting applications for support. Substantial changes were noted in two points.

In order to avoid supporting projects with fictitious energy savings, the definition of “reducing energy consumption / increasing the energy efficiency of production and technological processes” has been modified. This is a non-supported activity, where the project cannot support the acquisition of more energy-efficient machinery and technological processes if an energy assessment shows that the baseline energy consumption of these machines or technological processes does not correspond to the current energy consumption status according to the actual energy consumption within the enterprise.

In addition, the ratio of the size of the accumulation to the size of the photovoltaic power plant to be acquired has been adjusted. According to the new conditions, support for the accumulation of an electrical power plant can only be granted if the accumulation is part of the investment in a new PV power plant and serves exclusively for the purpose of optimising the use of the electricity produced. In the case of electricity storage, the capacity of the battery must not exceed 1 kWh/kWp of the installed capacity of the PV power plant. It must involve the accumulation of electricity in battery systems. If the above conditions are not met, it will be recognised as an ineligible expenditure.

All the changes described above came into force on 10 March 2023 and do not apply to subsidy applications already submitted by that date. 

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