WIf Sebastian Brodmann had his way, he would have his company’s planned third solar system built immediately. “We still have free roof space,” says the managing director of Johann Spielmann GmbH in Dorsten, which is behind the organic beverage brand Landpark. Alone, the inverters are difficult to get, which make the gliding current of the solar modules suitable for the power grid, and the approval procedures for solar systems have become more difficult.

In addition, Brodmann would like to have a solar park built on the company’s own forest and meadow area. But there is a problem here too. Brodmann: “May the area be rededicated?” The family business already generates a third of its electricity from solar energy. With the area of ​​the third solar system, it should be about 50 percent.

Brodmann wants to set up his company completely emission-free in the future. The medium-sized company financed 80 percent of the first systems – erected in 2018 and at the beginning of 2022 – with the rest coming from its own funds. Total costs: almost 800,000 euros. Brodmann used the “universal loan” from NRW.Bank for the second system.

As an expert in intelligent building technology, the Berlin-based family company Kieback & Peter supports investors, owners and operators of buildings who want to save energy and reduce their carbon dioxide (CO2) emissions. The first step is an actual recording.

Emit no greenhouse gases

“Where am I and how much CO2 emissions and energy consumption are associated with it,” explains Björn Brecht, Head of Product & Solution Management. It is now possible to plan which measures must be taken to ensure that no more greenhouse gases are emitted by 2045.

The energy flows are measured using building and energy management software. According to Brecht, there is “gigantic potential” in optimizing ventilation systems. In addition, many medium-sized companies have complex heating systems, such as gas or oil and a combined heat and power plant that was built later. Actually, the latter should run every day and “only if that’s not enough, oil or gas is added,” he says.

But in practice it is often the other way around. Here it is important “to balance the suppliers with each other.” Kieback & Peter wants to achieve net-zero emissions in its own operations by 2027 and is investing in buildings, vehicle fleets and production to do so.

Medium-sized companies are not isolated cases. In fact, according to the European Commission, buildings in the European Union are responsible for 40 percent of energy consumption and 36 percent of greenhouse gas emissions. The Federal Ministry of Economics and Climate Protection describes the building sector as a “central stage on the way to climate neutrality by the year 2045”.

Use renewable energies

On April 19, the Federal Government passed the second amendment to the Building Energy Act in the Federal Cabinet. Among other things, it stipulates that from January 1, 2024, every newly installed heating system must use at least 65 percent renewable energy.

This applies to new and existing buildings, residential and non-residential buildings. Existing heaters are not affected and can continue to be used. Repairs are still possible. The end date for using fossil fuels in heating is December 31, 2044.

What does this mean for medium-sized companies that want to replace their heating from 2024 or have to for reasons of age? Eckard von Schwerin, consultant for funding programs at the federal development bank KfWsays that there is “a lot going on” when it comes to the heating issue: “We currently do not yet know what the general conditions for medium-sized companies will look like and what role KfW will play.”

There is even more to come for companies – the federal government wants to accelerate the photovoltaic (PV) expansion. According to lawyer Niklas Ganssauge, partner at CMS Germany, there is no uniform regulation so far, but the federal states have their own plans. Their laws require “rooftops to be fitted with solar panels,” he says.

Various grants

In most federal states, this initially applies to new construction and extensions of non-residential buildings, and then also to roof renovations on existing buildings. The point in time and the scope “differs from state to state.” According to Ganssauge, this should be the case across the board for non-residential buildings in most federal states by the end of 2025.

Medium-sized companies can use various subsidies for their measures. KfW promotes the refurbishment of efficient buildings, their purchase or construction Federal Office of Economics and Export Control (BAFA) individual reorganization measures. There are also programs run by the state development institutes. The on-lending principle applies to KfW and state development institutions – the house bank forwards the loan application.

In the commercial sector, KfW distinguishes between buildings that are to be renovated and new buildings as part of the “Federal Funding for Efficient Buildings”. For the latter, the “climate-friendly new building” program has been in place since March 1st. In both cases, medium-sized companies plan what needs to be done together with an energy consultant. If the development loan is approved, there is a repayment subsidy of up to 35 percent for renovations.

For new buildings that meet special sustainability criteria and receive the “Sustainable Building” seal of quality, a sustainability certifier must also be at the table. Companies do not receive a repayment subsidy here – “the attractiveness lies in the low interest rates”. Von Schwerin advises medium-sized companies to discuss with their house bank whether, in addition to the KfW subsidy, a “schnapps on top of that from the state development institute is possible”. Important: KfW only supports measures that go beyond what is required by law.

Energy Efficient Investments

A state development institute is the NRW.Bank. It offers various subsidies for companies that are planning, among other things, energy-efficient investments. For example, Sebastian Brodmann received the “universal credit” for the second solar system, because “solar systems are classic commercial investments where most of the electricity generated is self-consumed,” says Michael Monstadt, head of the Westphalia funding consultancy. There is also the “Efficiency Credit” for investments in energy-efficient machines, for example, and the “Energy Infrastructure Promotional Loan” for companies that feed the majority of their own electricity into the grid.

Monstadt gives an example for the “Efficiency credit for construction” sub-group: Anyone who has their facade insulated for 100,000 euros can receive a BAFA subsidy of up to 20,000 euros and “a promotional loan of 80,000 euros from us”, issued via the house bank. When medium-sized companies discuss their energy efficiency plans with Commerzbank’s subsidy experts, they provide individual advice as to whether public subsidies or in-house financing are suitable solutions.

Jens Sossong, coordinator of the Public Funds Competence Team, has seen “a noticeably greater need for advice” for the past one to two months. The medium-sized companies are exploring what measures to take, and this is reflected in a cross-sector wait-and-see attitude, says Christine Rademacher, Head of Structured Financing.

Sossong advises “to talk to the financing partner at an early stage and not to sign any contracts beforehand”. Monstadt emphasizes analyzing in advance “where they stand and where they want to go”. Before placing orders, you should speak to your house bank. She submits the grant application. Sebastian Brodmann also applied for the development loan through his house bank.