Subsidies for sustainable construction

Before Article

If you are planning to make your building more sustainable, there are a number of subsidy schemes for which you might qualify. With these subsidies, you can improve your sustainability business case even further, keep investments lower, and achieve greater savings. Subsidies may ensure that your building and systems will be significantly more energy efficient and more sustainable. In addition, the tenant’s energy expenses will be lower, improving your competitive position within the market. Do you need help applying for a subsidy? Or would you like to know what the impact of this subsidy could be for your situation? Contact our consultants for tailor-made advice.

In this article, CFP Green Buildings and Van Draeckeburgh have listed the most relevant subsidy schemes for 2019.

1. Sustainability Regulations on Reductions in Landlord Levies: for public housing

The Sustainability Regulations on Reductions in Landlord Levies (RVV Verduurzaming) is a fiscal incentive scheme for public housing. The scheme is meant for landlords with fewer than 50 (public) rented houses who pay a levy on the WOZ-value of the rented house. If a rented house is upgraded by a minimum of 3 energy labels (and the minimum label is B and the Energy Index < 1.40), a reduction of the landlord levy can be claimed.

When to apply?

It is recommended that you apply for the subsidy before 1 April 2019. All applications before 1 April will receive a positive response; after that date, the remaining available budget will be taken into account. Once you have submitted your application, the investment must be realised within 3 years.

Apply before 1 April 2019! After this date, the scheme will probably be terminated; the expectation is that the available budget will be exceeded by that date.

– Mitchell Gmelich, Van Draeckeburgh

2. Energy-saving Investment Credit 2019: for investments in energy-saving technologies

The Energy-saving Investment Credit (Energie Investeringsaftrek, or EIA) is intended for entrepreneurs who want to invest in energy-saving technologies and applications of sustainable energy within their organisation. With the EIA, you will save on income tax or corporation tax. The scheme results in an average gain of 11%. In addition, you will also save on your energy costs. Measures for which the EIA can be applied for include the following:

  • implementation of an energy recommendation
  • improving the energy label
  • new HR+++ glazing
  • insulation for existing structures
  • heat pump system
  • ground source heat pump system
  • heat pump air conditioning
  • heat recovery from ventilation air
  • LED lighting system in existing buildings
  • lighting control system

When to apply?

It is important that you apply for the EIA on time, because otherwise the scheme may be limited or even suspended. The term of reporting of the purchase of business assets is a maximum of 3 months after the contract for delivery. This can be, for example, a verbal commitment to install a measure.

Natural moments such as renovation, maintenance or replacement are the best triggers for sustainability. Grants are sometimes the deciding factor for a business case, but are always important to check, such as with the Energy Module of our CSR manager.

– Bram Adema, CFP Green Buildings

3. Environmental Investment Credit 2019: for the purchase of environmentally friendly business assets

The Environmental Investment Credit (Milieu-Investeringsaftrek, or MIA) encourages entrepreneurs to realise sustainable buildings and to purchase environmentally friendly business assets. Depending on the level of ambition, you can deduct up to 36% of the cost of investments in a sustainable building from the taxable profit. Investments for which the MIA can be applied for include the following:

  • sustainable property certified by means of a BREEAM or GPR certificate
  • charge point for electric vehicles and vessels
  • grey water system
  • sustainably produced wood
  • sustainably produced products (building materials, interior, and furniture)

When to apply?

You can apply for the MIA no more than 3 months after the contract to deliver. The available budget is € 114 million. When the budget overrun is in sight, the Minister of Finance may limit or suspend the scheme. This has not happened since 2008, because the budget that is left in one year can be transferred to a subsequent year.

Een veld met zonnepanelen

4. Renewable Energy Production Incentive: for solar panels

The Renewable Energy Production Incentive subsidy (Stimulering Duurzame Energieproducten, or SDE+) is a contribution from the national government to make the production of sustainable energy using solar panels cost-effective. The scheme only applies to owners with a connection for large-volume users and for solar panel systems with a minimum capacity of 15kWp.
The subsidy consists of a payment per generated unit (kWh) of electricity for a period of 15 years. The SDE+ compensates for the difference between the cost price of grey energy and that of green energy. The payment amount, therefore, depends on the developments of the energy price. For solar panels, the net subsidy is approximately 4 cents per kWh.

When to apply?

The SDE+ can be applied for 2x per year. The application process has 3 stages, each with a maximum application amount. The later you submit your application, the higher the amount for which you can request a subsidy. By submitting your project with a price that is as competitive as possible, your chance of receiving a subsidy increases.

5. Investment Subsidy for Sustainable Energy: for the purchase of small systems

The Investment Subsidy for Sustainable Energy (Investeringssubsidie Duurzame Energie or ISDE) is meant for both the business market and private individuals. With the ISDE, you can receive a subsidy for the purchase of sustainable alternatives to gas and electricity. For example, solar boilers, heat pumps, biomass boilers, and pellet stoves. The most common technology is the heat pump for sustainable heating and cooling. Depending on the type of heat pump and the capacity, the subsidy is between € 1,500 and € 5,000 per unit.

When to apply?

The ISDE subsidy is to be applied for before you purchase the unit. The ISDE is a long-term scheme that runs until 31 December 2020. The available subsidy in 2019 is € 100 million.

The applications will be processed according to the order in which they are received, so it is advisable not to wait too long. The available subsidy for 2019 is € 100 million. The subsidy will be continued until the end of 2020.

– Mitchell Gmelich, Van Draeckeburgh

6. Green projects

The financing of ‘green projects’ – or projects that have a positive effect on the environment – becomes more attractive thanks to government schemes. Because the government offers a tax advantage to green savers and investors, the bank can offer an investor a loan with a lower interest rate. The interest rate depends on the bank in question. You can request financing for the following, among others:

  • Sustainable construction
  • Sustainable energy
  • Energy savings
  • Sustainable mobility
  • Sustainable water chain
  • Nature, forest, and landscape
  • Organic agriculture
  • Green Label Greenhouses
  • Closed greenhouse systems
  • Agrification
  • Recovery and reuse

When to apply?

The tax subsidy for green projects was cancelled as of 2019. The subsidy can still be applied for if the assignment was issued in 2018.