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Lucrative ecological credit in Poland in 2024 – frequently asked questions (FAQ)

by | 17 Jan, 2024 | EU Funds

key information

The ecological credit in Poland in 2024 is a non-refundable grant for energy efficiency improvements for entrepreneurs (SMEs and some large entrepreneurs).

The ecological credit is up to 80% funding for energy efficiency and renewable energy sources (RES) investments.

Applications for funding will be available from 25 April 2024 to 25 July 2024 and from 17 October to 30 December 2024. PLN 1 billion 320 million is available as ecological credit funding in 2024. Additional information about the call for proposals can be found on the blog.

Check out the most frequently asked questions by entrepreneurs in relation to the possibility of obtaining funding under the ecological credit.

Kredyt ekologiczny 2024

Image by creativeart on Freepik

Can the investment include only thermal modernisation of the building?

Yes, thermo-modernisation can be the only element of the project if the recommendation in this respect results from the audit document. The scope of the project is determined on the basis of the audit document. Regardless of the scope of the project, it is obligatory to meet the requirement of min. 30% of primary energy savings as a result of the project.

Can the installation of RES or replacement of machinery/equipment be the only element of the investment within the ecological credit in Poland in 2024?

The scope of the project is determined on the basis of the prepared audit document. If it results from it that thermal modernisation of the building is not justified (e.g. the building is new or recently renovated and meets all standards/requirements), the project may not include thermal modernisation of the building. In such a situation, the project may cover other elements than thermos-modernisation (e.g. replacement of machinery/equipment for more energy-efficient ones or purchase of RES installations generating energy solely for the needs of the applicant), which will be in accordance with the competition documentation. Irrespective of the scope of the project, it is mandatory to meet the requirement of min. 30% of primary energy savings as a result of the project.

Is it possible to construct or extend a building or its part as part of the investment within the ecological credit in Poland in 2024?

No, the project can only involve the renovation or adaptation of an existing building in order to increase its energy efficiency.

Can the RES installation generate electricity for sale?

A RES installation can only generate electricity for the applicant’s own needs to the extent that it corresponds to the needs of the company’s production processes. The investment related to the RES installation must not concern the production of electricity for sale. The capacity of the installation must be adapted to the company’s actual energy needs.

Is the thermo-modernisation of the administrative building an eligible expense within the ecological credit in Poland in 2024?

Yes, it is possible to apply for this expenditure to be considered as eligible expenditure, provided that it is owned by the applicant and is used by him/her entirely for business activities.

Are there any eligibility requirements for those carrying out the audits and preparing the audit document?

We have no eligibility requirements for the persons who carry out the audits and prepare the audit document. The applicant is responsible for the application, including the data shown in it.

What should be done with the machinery and equipment being replaced?

Existing machinery/equipment to be replaced with new (more energy-efficient) machinery/equipment will not be allowed to remain in the company’s fixed asset register, nor will it still be able to be used in any way within the company.

Can the entity renting the hall participate in the competition and apply for a subsidy e.g. for the replacement/modernisation of machinery + purchase of RES?

No. An applicant cannot apply for a grant for the thermal modernisation of a hall if he does not own the hall and only rents it. The applicant must be the owner of the hall in order to be able to apply for funding for the thermal modernisation of the hall. The applicant can apply for funding for the replacement/modernisation of machinery in a rented hall if he is the owner and the audit shows that modernising the hall is not required.

Can the applicant, who is the owner of a real estate which he rents to another entity in order to run his business, apply for thermomodernisation of the building within the ecological credit in Poland in 2024?

No. The beneficiary of the project implementation (i.e. the entity obtaining tangible benefits connected with the project implementation) must be the applicant and not third parties. In the event that the real estate or a part of it is rented out to third parties, the benefits of the project (reduction of primary energy consumption by at least 30 percent and thus reduction of building maintenance costs) would be felt by the tenants and not the beneficiary of the project.

The company plans to replace the heating system in the hall and to purchase a production machine with lower power consumption than the one currently used. Can such a project be included under regional investment aid within the ecological credit in Poland in 2024?

Within the framework of regional investment aid, eligible costs are those related to the implementation of the initial investment referred to in Art. 2 para. 49a of Regulation 651 – concerning a fundamental change in the production process of an existing plant. You must verify whether the planned investment provides for such a change.

What documents exactly does the applicant need to have at his disposal: an energy audit of the enterprise, an energy audit of the thermos-modernisation project and an energy efficiency audit or an energy audit of the thermos-modernisation project and an energy efficiency audit?

The applicant shall attach to the application an audit document prepared in accordance with the requirements for the call for proposals. Details on the requirements are included in the guide for drawing up the audit document. According to the selection criteria for the call for proposals, an energy audit of a thermos-modernisation project is an obligatory element of the audit document, while an energy efficiency audit is an optional element.

A company has several plants and would like to include only one plant (building) in the project. Does the 30 per cent primary energy saving indicator refer to a specific building or to the whole company? The selection criteria refer to the area, i.e. the building, and the result indicator refers to the company.

The primary energy saving of 30 per cent should be referred to the area covered by the project also in the case of the indicator (e.g. a building or buildings). Thus, only one establishment (building) can be covered by the project.

Is it possible to lease the property on which the photovoltaic installation is located, the energy produced from which is to be used for the applicant’s own needs?

It is possible to install a photovoltaic installation on a leased property in a situation when the energy audit does not show the necessity of thermo-modernisation of the building. The applicant is then obliged to ensure the sustainability of the project.

Does an applicant who owns 2 buildings in the same locality have to submit two applications within the ecological credit in Poland in 2024?

No. The applicant must submit two applications for funding if the buildings are not located on one or adjacent plots of land.

Can different types of public aid be combined in a project? E.g. the purchase of machinery from regional investment aid and the purchase of a photovoltaic installation from a source for the promotion of RES energy.

Within a project it is possible to use different forms of aid, depending on the type of expenditure in question.

The above information was compiled from information and answers to a question on the ecological credit available on the website of Bank Gospodarstwa Krajowego.

Using my years of experience and knowledge, I can help you with the following:

Advising on the business development strategy taking into account the available public funding

Analysis of a project in terms of meeting the evaluation criteria and proposing possible changes to the project's assumptions in order to increase the chances of receiving funding

Preparation of a comprehensive funding application together with a business plan in line with requirements

Preparation of financial analysis for the application for funding

Assistance during the project evaluation process by public body’s experts

Please contact me or visit my blog to see what benefits you can get and find out more.

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