Quick savings or waiting for a grant? Analyze it!
Many entrepreneurs, when planning modernization projects, consider the timing of implementing energy efficiency investments. On one hand, there is the prospect of funding from various sources, which can significantly reduce the project’s initial cost. On the other hand, it is worth considering whether waiting for these funds may lead to greater losses resulting from the lack of implementation of energy-saving technologies. Every day of delay is a tangible financial loss that could have been avoided.
Grants for industry – what are the options?
Currently, there are many forms of financial support available on the market aimed at stimulating energy-saving investments. Examples of such mechanisms include:
Grants from the National Recovery Plan (KPO)
They support projects in the field of new technologies, green investments, and reducing energy intensity. The total amount of allocated funds exceeds EUR 25 billion, but obtaining financing is not immediate – competition results are usually announced with a delay of several months.
Fundusze Europejskie dla Nowoczesnej Gospodarki (FENG) (FENG)
A comprehensive financial support program with a budget of nearly EUR 8 billion. It includes various forms of support: from grants, to loans, to financial guarantees. However, preparing and submitting an application to FENG can take up to several months.
FEnIKS – Fundusze Europejskie na Infrastrukturę, Klimat, Środowisko
FEnIKS allocates EUR 24 billion to projects related to climate protection and reducing greenhouse gas emissions. This program requires meeting strict project evaluation criteria, which naturally extends the waiting time for financing.
NFOŚiGW
These are grants from the National Fund for Environmental Protection and Water Management, which support, among others, investments in cogeneration. Since April 2024, applications have been accepted for funding under the “Cogeneration for Energy and Industry” competition. The application process also takes several months, and the available budget amounts to PLN 3.5 billion.
White certificates
This is a program offering energy efficiency certificates (so-called white certificates) for companies planning to implement energy-saving investments. At the investment planning stage, an application is submitted for the issuance of white certificates (so we already know the scale of the “grant,” as the review of an application submitted with a qualified auditor is merely a formality), and they can then be monetized after the investment is completed. The advantage of this form of support is that you can start implementing the project immediately after submitting the application. Unlike grants, where the project’s course and budget are usually limited by a strict plan, white certificates can also be obtained for a more flexible implementation – the most important thing is to achieve the declared energy savings. After the project is completed and a possible post-completion audit, white certificates are recorded in the company’s brokerage account and can be monetized.
Which funding is worth using?
Each form of financing energy-saving investments has its advantages and disadvantages. In all programs, funds from grants are released after the investment is completed. EU and national grants offer significant financial support, but the application process is time-consuming, and the announcement of results can take several months. Additionally, in the case of grants, clients often postpone the start of the project until they receive information about the award of the grant and sign a contract with the relevant institution.
Usually, calls for EU funding are open several times a year, so if you miss the deadline to submit an application, you will have to wait for the next round. The call for energy efficiency certificates is continuous, which means that unlike grants, the application can be submitted at any time. Submitting it should not take more than 2 weeks, after which the investment can begin. Remember that an energy efficiency audit must be prepared for the project covered by the application for white certificates. Due to possible inspections from the Energy Regulatory Office, it is worth choosing a reputable partner for this audit, and to avoid incurring additional costs before the investment, ensure settlement on a success fee basis.
The choice of the right solution depends on the specifics of the project and the company’s preferences, which must decide between quick implementation and a longer wait for support. Often, funding programs for energy-saving investments require financing the project from own resources, and only after its completion does settlement and partial reimbursement occur. In the case of grants, it is possible to apply for advances for project implementation or reimbursement of part of the funds already spent during the project’s execution. In the case of white certificates, funds are obtained only after the investment is completed.
Schumacher Packaging – an example that speaks for itself
Delaying a decision on an energy-saving investment can lead to huge losses. The example of Schumacher Packaging Polska shows how much can be gained by acting quickly. The investment we implemented, worth PLN 40 million, paid for itself in less than two years. This means that about PLN 20 million remains in the client’s account each year. Now, imagine that this company postponed its decision to implement the project and waited for a grant, with the process of launching the competition and then reviewing the application taking over a dozen months.
During this time, the company would lose about PLN 55,000 every day. This is a tangible amount that could be invested in further company development, new technologies, or other projects increasing operational efficiency. Money that could have been saved flows away – all because of waiting for a potential grant.
How to calculate energy efficiency savings?
For every company, one of the most important investment efficiency indicators is the payback period. If it is short and the savings generated by the project are significant, waiting for grants may cause the company to lose tangible amounts of money that could have been saved.
Investments in energy efficiency are one of the most effective tools for increasing profitability in industrial companies. On one hand, you can wait for grants that will reduce the initial investment cost, but on the other hand – every day of delay is a financial loss. In many cases, quick project implementation brings greater benefits than waiting for financial support. Of course, grants are valuable support, but the key is to skillfully balance the waiting time for funding with the real savings that can be achieved through earlier project implementation. The basis is a very thorough analysis and optimal forecasting of future energy or utility prices.
Summary
Entrepreneurs facing a decision on investing in energy efficiency must make a difficult calculation: is it worth waiting for grants that can lower initial costs, or is it better to act immediately and start generating savings earlier? The answer is not straightforward – it all depends on the specific situation of the company, available resources, and forecasted energy prices. Analyzing the financial benefits of earlier implementation of energy-saving technologies should be a key element of the decision-making process. Sometimes, the profit from quick action outweighs the potential benefits of a long wait for financial support, which can translate into better long-term profitability for the company.
