MIT combination of 0% Loan and subsidy for energy efficiency
About this good practice
The financial instrument is provided by the Ministry of Industry and Trade Czech Republic (Op. Prog. Enterprise and Innovation for Competitiveness) and distributed through the state owned National Development Bank. It was modified (with the latest modification valid since January 2022) based on the effects of the crisis associated with the COVID-19 pandemic. It aims to support the energy efficiency in building with respect to the contribution to the fulfillment of Directive 2012/27/EU of the European Parliament and of the Council on energy efficiency.
The support consists of combination of financial instruments and subsidy:
-0% loan (55%)
-Subsidy on the interest rates
-Subsidy for energy assessment (10k EUR)
The FI is provided to energy efficient projects according to the Specific Target 3. 2. “Increase energy efficiency in the business sector” of the Program axes 3. (Efficient energy storage, development , renewable energy sources, new technologies and secondary raw materials).
The FI is providing support to the project with at least 10% energy savings and is eligible for:
- modernization and reconstruction of electricity, gas and heat distribution in buildings,
- introduction and modernization of energy management measurement and regulation systems
- modernization or reconstruction of existing facilities for the production of energy
- modernization of lighting systems
- installation of RES for own consumption
- installation of a CHP
- accumulation of electrical energy
Resources needed
The total amount of funds reserved for providing the financial instrument was set to approx. 16,3 mio. EUR (400mio. CZK).
Evidence of success
Since 2019 the FI was distributed among hundreds of energy efficient projects and the interest is growing especially thanks to current situation with energy prices reaching astronomic values.
Potential for learning or transfer
The FI provided is a quick and efficient way to support energy efficient projects with less complexity and higher flexibility to help to decrease the energy costs and modernization of old and inefficient technologies used for energy generation. Especially for the post COVID 19 era it is very hard to find sufficient funds to realize energy efficient and costs saving projects. The combination of financial instrument and the subsidy for interest rates and energy evaluation is opening possibility to enable the investment in a relatively easy way as a one-stop-shop solution. It can be easily replicated in any other country for its simplicity and its support from really early stage of the process - starting with energy assessment.
Further information
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