LED funding in Germany

The Federal Funding for Efficient Buildings (BEG) provides companies, municipalities and non-profit organizations with support in renovating buildings that permanently save energy costs and thus protect the climate.

Requirements:

• The existing lighting system must be more than five years old.
• The new LED lighting must have a minimum lifetime of ten years.
• Involvement of an energy efficiency expert.
• Minimum investment volume of €2,000 net.

Technical Requirements:

• System luminous efficacy of at least 140 lm/W for LED strip lighting systems and 120 lm/W for other lighting systems.
• Luminous flux maintenance (L80) of at least 50,000 operating hours.

Who is supported?

• Businesses, including sole proprietors and municipal enterprises
• Local authorities, municipal associations and special-purpose associations, and legally dependent municipal enterprises
• Non-profit organizations, including churches
• Private individuals, homeowners' associations, and freelancers
• Other legal entities under private law, including housing cooperatives

What is being funded?

• Replacement of complete lighting systems (luminaire, light source, reflector/optics, cover)
• Installation of control and regulation technology, e.g., presence- or daylight-dependent controls
• Purchase, installation, and commissioning of eligible system components
• Deinstallation and proper disposal of the system components to be replaced
• Subsidies for LED lighting in combination with the modernization and replacement of luminaires.

How high is the subsidy rate?

• Funding rate: 15% of eligible expenditure for converting to LED lighting.
• Additional funding: 50% subsidy for specialist planning and construction supervision by energy efficiency experts.
• Maximum eligible expenditure: €1,000 per square meter of net floor area, up to a total of €5 million per project.
• Funding period: The directive entered into force on January 1, 2021, and ends on December 31, 2030.

Who is supported?

• Municipalities (legally dependent businesses and other municipal institutions are not eligible to apply due to their lack of legal personality. Municipalities may submit an application on their behalf),
• Legally independent businesses and other institutions with at least 25 percent municipal participation, as well as special-purpose associations with municipal participation,
• Public, non-profit, charitable, and religious institutions – with the exception of the federal government – ​​in the areas of education, preschool, school, or higher education, child and youth welfare, health, culture, nursing, care, accommodation, and social assistance – each for the respective institutions,
• Non-profit and charitable associations for the institutions they operate,
• Religious communities with corporate status and their foundations.

All eligible applicants are listed in Section 5 of the Municipal Funding Guideline (Kommunalrichtlinie).

Companies are also eligible to apply if they implement the project as contractors on behalf of a municipality or a municipal association. Further details can be found in Section 5.3 of the Municipal Funding Guideline.

What is being funded?

• Refurbishment of indoor and hall lighting.
• Refurbishment of outdoor and street lighting.
• Installation of control and regulation technology.
• The complete lighting system consisting of luminaire, lamp, reflector/optics, and cover.
• The purchase, installation, erection, and commissioning of eligible system components, including the necessary installation materials.
• The deinstallation and proper disposal of the system components to be replaced.

The approval period is usually 18 months.

How high is the subsidy rate?

• The grant amounts to 25 percent of total eligible expenditures.
• Financially weak municipalities and applicants from lignite-mining regions (according to can receive 40 percent of total eligible expenditures as a grant.
• Municipalities are considered financially weak if they can demonstrate participation in a state aid or budget stabilization program, or if their financial weakness is certified by the municipal supervisory authority.
• Applicants from lignite-mining regions do not need to provide separate proof to benefit from the increased funding rate. In this case, allocation via their postal code is sufficient. Please note that you must explicitly apply for the increased funding rate using the easy online form (see "Application Process and Application").

Funding details:

• Financing contribution: Up to 100% of the investment costs.
• Repayment subsidies: Available depending on the program and measure.

Requirements:

• Compliance with minimum technical requirements. Proof of energy savings.
• Further information can be found on the KfW website:

Please note that certain requirements apply to these tax benefits and funding programs. We recommend seeking individual advice before implementing an LED renovation to identify and optimally utilize the funding opportunities that are right for your company or municipality.

Examples of state funding programs:

• Bavaria: SportFöR – Funding for sports clubs with subsidies of between 20% and 55% for LED lighting.
• Baden-Württemberg: WLSB Sportstättenbau – Funding for sports clubs with subsidies of 30% for LED lighting in indoor and outdoor areas.
• Hessen: Funding for club-owned sports facilities with subsidies for LED lighting.

Please note that the availability and conditions of these programs vary by state.

Special depreciation for energy-saving renovations

Companies that upgrade their buildings to make them more energy efficient can receive tax incentives. This includes measures such as converting to LED lighting. These investments contribute to reducing energy consumption and CO₂ emissions and can be deducted from their taxes.

Investment allowance for environmentally friendly systems

Companies can claim an investment allowance for investments in environmentally friendly and energy-efficient systems. This applies particularly to systems that contribute to improving energy efficiency, such as LED lighting systems. This allowance allows companies to reduce their tax burden while simultaneously investing in sustainable technologies.