Grant Scheme for commercial Renewable Heating Projects
Since 2008, the Norwegian government has offered a case-by-case subsidy for sports facilities or businesses, which would like to replace their old heating system by a new one receiving its energy from renewable sources. The programme itself is run by Enova, a public enterprise owned by the Royal Norwegian Ministry of Petroleum and Energy. Support is granted after a financial evaluation of every project applying for a subsidy. The evaluation on a case-by-case basis will help to determine the precise level of support a certain project will need to secure a reasonable rate of return, which, at the moment, translates into 8 % before taxes.
The subsidy, however, is capped at 0.8 NOK/kWh relating to the annual energy output of the system. This limitation has caused problems for supporting new solar thermal installations: “They are too expensive and therefore only very few systems have been supported by the Small Heating Plant Scheme over the last years,” Enova’s Trond Bratsberg explains. 0.8 NOK/kWh equals 0.12 EUR/kWh. With regard to an average energy production of a solar thermal system of around 400 kWh/m2, this adds up to a maximum of only 38 EUR/m2 of installed collector area.
| Country / region |
Norway |
| Name of programme |
Grant Scheme for “Small Heating Plants” |
| Type of incentive |
Subsidies provided on a case-by-case basis |
| Eligible technologies |
Small Heating Plants driven by renewable energy sources, such as solar energy or biomass |
| Applicable sectors |
Commercial and public buildings, sports facilities and industrial buildings, as well as several combinations of these. |
| Amount |
Supported are investments in heating plants / boilers and distribution facilities between various buildings and facilities. This includes the necessary equipment and facilities to ensure energy supply. |
| Maximum incentive |
Enova has prepared an investment calculator for determining profitability and the support to be granted. The investment calculator is based in part on predefined values, including the economic life-cycle of the system, and alternative energy prices. It will give an indication of whether the project is eligible at any support level. There is a link to the investment calculator on Enova’s website under the Market Area Heating section. |
| Requirements for system |
|
| Finance provider |
ENOVA SF (public enterprise owned by the Royal Norwegian Ministry of Petroleum and Energy) |
| Total funds |
NOK 3 billion annually for several renewable energy and energy efficiency programmes |
| Effective date |
Start in 2008, revised in January 2010 |
| Expiration date |
Unlimited: Subsidy schemes are under continuous evaluation. If a scheme is found inapt for the purpose it is to fulfil, it will be either closed or revised. |
| Website | https://www.enova.no/privat/borettslag-og-sameier/ |
| Last review of this tabloid |
January 2018 |
| Contact |
Enova Answers – svarer@enova.no Professional actors:
|
