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Federal Funding for Energy and Resource Efficiency in the Economy: Grants and Loans

EEW Directive remains updated

On May 1, 2023, the “Federal Funding for Energy and Resource Efficiency” (EEW) directive came into effect. Companies will continue to benefit from this directive in 2025. Two of the six modules are eligible for funding with WAGO products, according to the federal funding guidelines.

Did you know? Sustainability is increasingly becoming a key factor in insurance and investment decisions — and offers a competitive edge. Building automation enables and documents the required transparency — including for “ESG-Linked Loans,” i.e., corporate loans whose conditions are tied to a company’s sustainability performance. As a result, a commitment to sustainability can also reduce financing costs.

Module 3: Federal Funding for Energy and Resource Efficiency in the Economy

Module 3 provides funding for software and hardware associated with the implementation or operation of an energy or environmental management system. The goal is to help companies improve energy efficiency and resource utilization.

Eligible Applicants:

Private companies with a place of business or branch in Germany
Municipal and state-owned enterprises with private legal status and a place of business or branch in Germany
Self-employed professionals, provided the business premises are primarily used for freelance activities
Contractors implementing the measures outlined in the program guidelines on behalf of an eligible company

Funding Covers the Purchase and Installation of:

Energy management software and third-party training for personnel in its use
Measurement, control, and regulation (MCR) technology and sensors for monitoring and efficiently controlling energy and material flows, integrated into an energy or environmental management system

Specifically Eligible for Funding Are the Purchase, Installation, and Commissioning of:

Software solutions supporting an energy or environmental management system (energy management software)
- Building Cloud Service Energy Management
Sensors and analog-to-digital converters for capturing energy flows and other energy-relevant parameters for integration into the management system
- WAGO I/O System 750 Modules
Control and regulation technology for influencing systems and processes, provided the primary purpose is to reduce energy consumption
- WAGO I/O System 750 Controllers

Eligible Investment Costs Include:

Licensing fees for energy management software or software solutions
Purchase, installation, and commissioning of:
- Sensors for integration into an energy or environmental management system or an alternative analog-to-digital converter system
- Actuators for efficient control/regulation of energy flows
- Data loggers and gateways for transmitting sensor data to the software solution, aimed at measurable energy savings
Third-party training for personnel using the subsidized software solution
Full external costs for usage if the energy management software is provided as a cloud service

Further details on the technical minimum requirements are available in the annex to the information sheet on Module 3 — MSR, Sensors, and Energy Management Software.

Funding Amount:

The maximum funding is €15 million per investment project, with a funding rate of up to 50% of eligible investment costs.

Funding Requirements:

Measures must be implemented in Germany and operated for at least three years as described in the application. In addition to this information sheet and its annexes, a glossary is available on the funding program’s website (www.bafa.de/eew). It answers questions regarding the interpretation of the directive and the information sheets and is updated regularly.

Module 5: Transformation Concepts

The funding for transformation concepts supports companies in planning and implementing their transition toward greenhouse gas neutrality.

Eligible Investment Costs Include:

Preparation and Certification of a Carbon Footprint:
- For one or more company sites or a group of sites (convoy), provided all are in Germany
  - Building Cloud Service Environmental Reporting
Consulting Costs:
- Fees for energy consultants and other advisory services related to developing the transformation concept
- Implementation of internal processes (climate protection management)
Other Verifiable Costs:
- Additional costs directly related to the transformation concept
- Including cross-company consulting (e.g., supply chain partners in a joint convoy process)
Measurements and Data Collection:
- Costs for required measurements, data collection, and data acquisition necessary for developing the transformation concept
- A parallel application under Module 3 of the “Federal Funding for Energy and Resource Efficiency in Industry – Grant and Loan” (EEW) is recommended

Funding Amount:

Transformation concepts are funded under the General Block Exemption Regulation (GBER). The funding rates are as follows:

Companies without SME status: 40%
Medium-sized enterprises (MEs): 50%
Small enterprises (SEs): 60%

The maximum funding is limited to €50,000 per concept. For companies participating in a network under the Energy Efficiency and Climate Protection Networks Initiative (IEEKN), the funding rate increases by 10 percentage points and the maximum grant rises to €80,000.

Note

The Federal Ministry for Economic Affairs and Energy has commissioned the project management agency VDI/VDE Innovation + Technik GmbH to implement Module 5 (Transformation Concepts). Therefore, any questions regarding Module 5 should be directed to the project management agency.

Contact details of the project management agency:

VDI/VDE Innovation + Technik GmbH

Project Management Agency – Transformation Concepts

Steinplatz 1

10623 Berlin

Email: transformation-eew@vdivde-it.de

Hotline: +49 (0)30 310078-5555

Phone availability: Mon–Fri, 08:00–17:00

Website: www.wettbewerb-energieeffizienz.de

Laws and Regulations

Considering the life cycle of a building, along with user-specific and legal requirements, highlights the holistic importance of building automation — especially since approximately 40% of energy consumption and 36% of greenhouse gas emissions in Europe are attributable to buildings.

For this reason, the EU relies, among other instruments, on the Energy Performance of Buildings Directive (EPBD) as a key legal tool for climate protection. In Germany, this directive is implemented through the Building Energy Act (GEG), which explicitly identifies building automation as a means to unlock savings potential and meet or exceed efficiency standards.

In the broader context of the European Green Deal and the associated taxonomy and ESG requirements, sustainability is gaining importance across all industries. By improving energy efficiency, building automation contributes to decarbonization and is therefore a key enabler for achieving climate targets in the building sector. Accurate data is essential for measuring, controlling, regulating, and documenting technical systems according to demand. Enhancing energy efficiency in building automation not only supports environmental goals but also delivers significant cost savings. For example, leveraging tariff advantages can lead to additional savings — such as through time-of-use and load management strategies that shift energy consumption to periods with lower rates. Intelligent system control helps avoid peak loads and enables users to benefit from flexible tariff structures.

Want to Learn More? Then contact us directly!