GREEN investment subsidy - a grant for the green transition

The new instrument “GREEN investment subsidy” – Greener and Efficient ENergy Use in Industry – aims to help Flemish SMEs and large enterprises make their energy use greener and more efficient. The Flemish Government has set the goal of greening at least 10% of industrial energy by 2030. This VLAIO call for projects runs until the end of 2025 or until the budget is exhausted – so don’t delay your green investment plans.

What does the GREEN investment subsidy involve?

The subsidy is aimed at enterprises (excluding, among others, agricultural businesses and companies in difficulty) planning green investments in the following areas:

Greening theme

This theme supports the replacement of fossil fuels (such as natural gas, diesel, heating oil, etc.) with green energy or electricity:

• Heat derived from:
  • Specific renewable energy sources (green heat)
  • Green hydrogen: produced from green electricity
  • Blue hydrogen: produced from fossil fuels with:
    • Carbon capture (emission capture)
    • Carbon storage (permanent storage)
    • Carbon utilisation (use of captured emissions)
  • Residual heat

or

• Electrification

Solid and liquid biomass not meeting RED II sustainability criteria, ambient air (e.g. air-source heat pumps), landfill gas, PV panels, wind turbines, or other electricity production methods are not eligible.

Energy efficiency theme

If your company wants to reduce energy consumption by adjusting the production process (core activities), support is also available.

However, investments in thermal insulation, more efficient lighting, buildings and building management systems, fleet greening, solar panel controllers, etc. are not eligible. Nor are investments in new fossil-based technologies, unless related to the upgrading of residual heat.

For this theme, the technology invested in must go beyond standard technology. The investment must also clearly exceed legal requirements.

Complement to existing green support schemes

The GREEN Investment Subsidy complements existing support instruments:

• The Ecology Premium+, which only supports investments in technologies listed on a limited list. If your company invests in a technology not on that list, the new GREEN Investment Subsidy may still apply.
• The Strategic Ecological Subsidy (STRES), which has an investment threshold of €3 million. That threshold is considerably lower under the GREEN Investment Subsidy (€50,000).

There is also the Federal Government’s support scheme for launching innovative energy transition projects: the Energy Transition Fund.

If you are seeking strategic advice for your energy transition, this may also be available through the SME Growth Grant.

How much subsidy can your company receive?

The eco class and size of the company – SME or large enterprise (LE) – determine the subsidy rate. The project’s eco class is part of the assessment.

You may include multiple investments in one project and submit several projects. However, total support is limited to €1 million per company across the entire project duration.

The GREEN Investment Subsidy may not be combined with other forms of public funding.

The awarded subsidy is paid in two instalments of 50%. The first instalment is paid once 50% of the project costs are substantiated. The second is paid upon completion of the project.

Which costs are eligible under the GREEN investment subsidy?

Total project costs must amount to at least €50,000.

Only the ecological additional cost – defined as the difference between the total ecological investment and a standard investment – is subsidised. Any savings and/or income during the first five years of operation are deducted from this additional cost.

Eligible costs include:

• Engineering costs: calculations and specifications
• Investment costs: the actual cost of the new equipment
• Installation costs: costs of installing the equipment

Only invoiced (external) costs are accepted.

Internal costs (salaries), operational costs, feasibility study costs and infrastructure works (buildings, foundations, or other civil engineering works) are not eligible.

Evaluation process for the GREEN Investment Subsidy

VLAIO recommends a preliminary discussion and assesses an admissible application based on five evaluation criteria:

• Clear description of the technology and its technical feasibility
• Comparison with standard technology in the sector and, if applicable, Best Available Technology (BAT)
• Economic feasibility and added value of the subsidy
• Cost-effectiveness of the environmental benefits of the investments
• Ambition level of environmental objectives and quantification of the environmental impact

VLAIO prepares a draft decision for the Flemish Minister for the Economy and aims to provide the applicant with a decision within four months of submission.

The project may only start on the first day of the month following the submission month. It must commence within twelve months of approval and be completed within three years of the decision date.

What can Konnekto do for your organisation?

Konnekto can serve as your partner to assess the feasibility of your project idea. Next, we write your full project submission and application, prepare a sound budget, and support you throughout the online submission and evaluation process.

Even after the project is approved, we remain on hand to assist your company with reporting and timely claims for funding instalments.