Reducing the energy system through energy efficiency

Energy aid can be granted to projects that promote new technology, its commercial utilisation and the ability to regulate the electricity system, as well as energy savings by means of energy efficiency.

Energy aid can be granted for investment and audit projects by companies and organisations that promote energy saving, more efficient energy production or use, and at the same time make the energy system more carbon-intensive in the long term. Renewable energy projects can only be supported for biogas plant investments and new technology. The support must have a significant impact on the launch of the project.

In the consideration of subsidies, priority will be given to investment projects that promote new technology and its commercialisation and the ability to regulate the electricity system.

New technology refers to new types of commercial solutions that have not been extensively tested in Finland. Typically, this is the first or the first demonstration plants. The introduction of new technology involves additional costs or risks compared to a similar conventional technology project.

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  • The support will not be granted to projects that have been launched before the support decision. Support can be granted for costs incurred from the date of the funding decision at the earliest.
  • A procurement ordered for the project before the energy subsidy funding decision has been made can only be approved if the order agreement or contract of sale includes a condition that the procurement will be cancelled if the financing decision is negative. Even then, the costs are only acceptable from the date of the funding decision.
  • A copy of the binding order/agreement must be attached to the reporting to verify the time of order. Information on the insurance of the investment is also mandatory!
  • A prerequisite for the payment of the granted support is that the recipient of the energy subsidy submits the final report and its appendices to the project within the agreed reporting period!
  • Subsidised targeted audits are now also possible for municipalities that are part of the Energy Efficiency Agreement. More information on targeted audits is available on Motiva's website. 
  • Conventional photovoltaic systems are not supported.
  • Electricity storage facilities can be supported if the electricity storage facility takes at least 75 per cent of its energy per year from a renewable energy production plant directly connected to it, and the project also invests in renewable energy or renewable hydrogen production capacity. Aid will not be granted for electricity storage facilities related solely to the reserve market.

 

See instructions for applying for funding
When to apply for funding?

Projects launched (e.g. ordered) prior to a granting decision will not be given aid. Aid may be granted to cover costs arising no earlier than the date of the funding decision.

This is a voluntary investment. The purpose of the investment must not be the achievement of a mandatory environmental obligation or a mandatory energy audit in accordance with the Energy Efficiency Act (1429/2014), for example.

What is required of the organization?

  • A project suitable for energy aid that has not yet been launched.
  • The organization can be of any size.

Aid will not be granted for the following purposes or operators

  • Housing companies*
  • Residential properties* (including care properties)
  • Farms or projects carried out in conjunction with farms, with the exception of projects where the energy produced is used outside of the agricultural production activity (even in this case, the applicant cannot be a farm)
  • Fishing and aquaculture undertakings, including processing companies
  • Government-subsidized start-up projects
  • Organizations whose activities are financed either wholly or mainly from the state budget
  • Agencies, institutions and other bodies belonging to a financial administration organization within the meaning of the State Budget Act (423/1988)
  • Projects in new buildings, excluding new technology projects
What can the funding be used for?

Energy aid can be used for

New technology is prioritized

New technology projects are a priority when energy aid is granted. New technology refers to new types of solutions that have not been applied in Finland before and are essential for energy and climate goals. Typically, the project is the first or among the first commercial applications of a technology. The adoption of new technology usually entails extra costs or risks compared to a corresponding project implemented using conventional technology.

New technology may be granted increased aid on a case-by-case basis. The need and level of increased aid are assessed case-specifically. The assessment takes into account the risk posed by the adoption of new technology and the related profitability assessment. This means that the aid granted to a new technology project is often lower than the maximum aid referred to in the Government Decree on Energy Aid. For SMEs, the maximum aid level is 40% in new technology projects. For major corporations, the corresponding maximum aid level is 30%.

In new technology projects, the applicant may be requested to provide an independent opinion on the novelty value of the project, if the funder deems it necessary for the verification of such novelty value.

Renewable energy investments in 2025: biogas plants and new technology projects

  • Biogas plants
  • Other renewable energy projects can only be granted aid as far as new technology is concerned
  • Aid can be granted to investments in the production of renewable hydrogen if the hydrogen is used in energy production or the production of fuel from refined hydrogen
  • Aid can be granted to an electricity storage solution if at least 75% of its annual electricity absorption comes from a renewable energy production facility directly connected to it and the project also invests in the production capacity of renewable energy or renewable hydrogen at the same time
  • The need for and level of aid will be assessed on a case-by-case basis
  • The investment costs of the project must be at least EUR 30,000 and no more than EUR 5,000,000
  • Based on project-specific consideration, the aid level for renewable energy projects is typically 15–30%.
  • For major corporations, the maximum aid level is 30% also in new technology projects.

Biogas plants

For renewable energy investments, investments in biogas plants are an exception to the new technology requirement. They can also granted aid when conventional technology is used. Even in this case, priority is given to investments in biogas plants that include new technology and investments that produce biogas for use in transport. Priority is also given to biogas projects where carbon capture is implemented, even if the aid is not directly targeted at carbon capture.

In addition, priority is given to investments in biogas plants with a concrete and feasible plan for the further processing and use of digestate. In all biogas projects, the applicant must submit a plan for the further processing and use of digestate. The plan must present the reasons for the chosen method of further processing and use of the digestate and the state of preparation of any related contracts. In addition, it must be made clear how nutrient recycling is taken into account in the chosen method of further processing and use. The future development of further processing and use of digestate at the plant must also be described.

Investments related to the processing, liquefaction, transmission, distribution or use of biogas can only be granted aid if investments in new reactor capacity are made at the same time. Aid can only be granted to investments to expand existing biogas plants if the reactor and biogas production capacity increase.

In connection with biogas projects, aid is not granted to fuel filling stations (this also applies to other biofuels).

In biofuel projects, aid can only be granted for plant projects that do not use as raw material logs or pulpwood with further processing potential.

Investments to save energy and improve energy efficiency

Typical investments to receive aid are related to the utilisation of waste heat from industrial processes.

  • Aid is not granted to energy efficiency projects related to buildings or their conventional building services.
  • As for energy efficiency investments, heat pumps of more than 1 MW may be granted aid if the project involves new technology or connecting to a low-temperature network. If a project involves the use of surplus heat as an energy source for a heat pump, aid may be granted to heat pumps of up to 5 MW in conventional technology projects. If the technology is new, aid may also be granted to heat pump projects of over 5 MW in capacity.
  • Heat storages can be granted aid if the technology used is new. Aid will not be granted to conventional thermal energy storage solutions that use water as the storage medium or to geothermal heat storage solutions.
  • Aid will not be granted to flue gas scrubbers or related heat recovery investments if they are connected to ETS installations or heating plants with a capacity exceeding 10 MW
  • Conventional technology projects related to lighting are not eligible for aid (incl. LED lights)
  • Aid is not granted to projects related to the insulation of buildings or changes to the outer shell (including doors and windows) of buildings, the doors or lids of refrigeration equipment and appliances, weather shields, rain canopies or other equivalent solutions.
  • Aid is not granted to waste heat projects at data centres.
  • Energy efficiency projects in new buildings are not eligible for energy aid (except for new technology).

Amount of energy aid for energy efficiency projects

  • The aid level for companies and organizations that have joined energy efficiency agreements is 20%.
  • The aid level is 25% when the ESCO service is used in the above.
  • The aid level is 15% for companies and organizations that have not joined energy efficiency agreements if they use the ESCO service.
  • The investment costs of a project must be at least EUR 10,000 and not more than EUR 5,000,000
  • Projects launched (e.g. ordered) prior to a granting decision will not be given aid.

See Motiva's energy efficiency and ESCO services and Energy efficiency contracts 2017-2025.

For ESCO services, guaranteed savings of at least 50% are required and the share of verifiable savings of total savings over the verification period must be at least 80% in terms of euros.

Aid may also be granted to companies and municipalities not covered by energy efficiency agreements, if their project includes new technology.

Energy audit and investigative audit projects

Models that have been eligible for aid since 2025 include a property's energy inspection, a property's energy audit, an industrial energy audit, an industrial energy analysis and targeted audit, a municipal energy audit focusing on renewable energy, and an in-depth investigative audit of major corporations.

Municipalities covered by the Energy Efficiency Agreement will have the opportunity to carry out targeted audits in 2025. The building volume limit of 10,000 m3 for private sector sites does not apply to municipal sites, as municipalities can only carry out targeted audits in connection with conventional Motiva-type energy audits for buildings. Targeted energy audits may account for up to 50% of the total number of energy audits. For example, if a municipality conducts a conventional energy audit in three properties, it may conduct a targeted audit in three properties of its choice.

Amount of energy aid for audit and investigative audit projects

  • Motiva-type energy audits of municipalities, micro-enterprises and SMEs that have joined energy efficiency agreements (aid level 50%)
  • Motiva-type energy audits of municipalities, micro-enterprises and SMEs that have not joined energy efficiency agreements (aid level 40%)
  • Motiva’s Targeted energy audit, aid levels as above
  • In-depth investigative audits of major corporations that have joined energy efficiency agreements (aid level 40%).
  • Projects launched (e.g. ordered) prior to a granting decision will not be given aid.
Before you apply

Ensure adequate self-funding

  • The company must have sufficient own funding to carry out the project. Adequate funding means that the company will be able to pay for the entire project itself before it receives aid from Business Finland.
  • Business Finland may grant energy aid for projects with investment costs of at least EUR 10,000 (energy efficiency investments) or EUR 30,000 (other energy investments, such as renewable energy investments). Project costs for each project must not exceed EUR 5,000,000.

Get these financial matters in order

We cannot provide funding to a company if:

  • the company is insolvent or has lost half of its share capital
  • the company has arrears on previous Tekes or Business Finland loans
  • the company has not submitted its financial statements to the Finnish Patent and Registration Office as required by the Limited Liability Companies Act
  • the company's financial statements have not been audited in accordance with the Auditing Act
  • according to the tax administration, the company has overdue taxes or outstanding payments for which no payment plan has been agreed
  • the company has failed to comply with other statutory registration, notification or payment obligations (such as submitting a notification of beneficial owners to the Trade Register).
  • the company does not have other (own or external) funding required for the investment or investigation.

Read the terms and conditions of funding

In the terms and conditions of funding, we explain the costs Business Finland is able to fund, how we monitor the costs of your project and how you will report on the progress of the project.

 
Apply for funding

Send us your application and its attachments through our online service. You can also follow the processing of your application through the online service. The applicant must appoint an accountable project leader from the applicant’s organisation for the energy investment project. A contact person is also appointed for the project. The contact person may be from the applicant’s organisation or from another organisation chosen by the applicant.

Online service

Attach to your application

APPENDIX 1: Application appendix to an investigative audit project (Motiva-type energy audit and Targeted energy audit)
APPENDIX 2: Project plan (all energy aid applications)
APPENDIX 3: Appendix to an application for an In-depth investigative energy audit (In-depth investigative audit applications only)

Submit a project plan as part of your application. Attach the project plan as a separate file to your application. We cannot grant funding if there is no project plan or if it is vague.

The project plan must describe at least the following:

  • A description of your organisation’s activities, ownership, key figures, and a description of the property or production process being invested in (address, purpose of use, year of construction).
  • Description of the investment, technical specification at least for the main equipment/equipment groups and cost breakdown. The total amount or total price of the offer alone is not enough!
  • Investment objectives, including numerical values, and a profitability calculation (repayment period)
  • Information on the status of official permits related to the investment (for example, whether a building permit, environmental permit, etc. has been obtained or is pending).

Eligible costs

Business Finland does not accept costs arising before the date of the funding decision. Projects that have started before the granting of aid are not eligible for aid.

Eligible costs for an investment project:

  • Cost of purchase, installation and commissioning of machinery and equipment
  • Cost of buildings (can only be accepted for applications for large-scale demonstration projects of new energy technology)
  • Earthworks and land acquisition
  • Preparation and planning costs
  • Specific monitoring costs (ESCO)
  • Possible costs of an auditor's report

In investment projects, the beneficiary’s own salary costs are not eligible.

As a rule, to ensure the effectiveness of funding, only procurements and work, for which a written order or contract is made after the issue of the funding decision, can be accepted for the project. Any purchase ordered for a project before the decision to grant energy aid has been made can only be eligible if there is a condition in the order agreement or deed of sale that the purchase will be cancelled if funding is not granted. Even then, the costs are only eligible as of the date of the funding decision.

If a customer has an extensive investment project underway, energy aid can be applied for a related limited new technology or energy efficiency component, if this limited component has not yet started and thus no costs have been incurred.

There is no obstacle to granting energy aid for costs arising as of the date of the funding decision if the site preparation and earthworks related to the investment project have started before the decision to grant the aid has been issued.

The following are not eligible costs in an investment project:

  • salaries and indirect employee costs
  • beneficiary’s travel expenses
  • overheads
  • entertainment expenses
  • banking and financial costs
  • voluntary personal insurance policies
  • costs that have been allocated public funding that may not be combined with other types of public funding (for example, the salary costs of a person who has received a startup grant for the same period)
  • salary costs for which a pay subsidy has been received
  • services with other public support
  • any financing, administration, insurance, repair, maintenance, or equivalent expenditures arising from hire purchase
  • purchase costs of office equipment, cars, and other equivalent durable goods
  • costs that are not relevant to the project’s implementation
  • cost provisions
  • connection fees and charges based on the Act on Criteria for Charges Payable to the State (150/1992)

Eligible costs in energy audit and in-depth investigative energy audit projects are:

  • salaries for time spent on the project according to working time monitoring
  • indirect employee costs
  • travel expenses
  • supplies and leasing costs of equipment and machinery
  • services purchased
  • any costs of an auditor's report

Project schedule

The schedule specified in the grant decision must be adhered to. If the schedule needs to be modified, you can make a project change application through the online customer service. The change application must be submitted before the existing schedule expires.

Project reporting and cost accounting must be done within the time limit for reporting. If the report and cost accounting are not submitted within the time limit, energy aid will not be paid.

How does Business Finland funding work?
  1. Before you apply

    Plan a project and define its goals. Ensure the sufficiency of self-financing.

  2. Apply for funding

    Submit your application through online services. Submit the additional information requested.

  3. Approve the funding decision

    Business Finland will assess your application and notify you of its decision. Read the decision and its terms and conditions, and approve the decision in online services.

  4. Use the funding

    Arrange project accounting. Notify Business Finland of any changes.

  5. Report your project

    Report your project's implementation and costs. Attach the additional information requested with your report.