The federal government's EEW funding from the Federal Office for Economic Affairs and Export Control (BAFA) is aimed at companies in all sectors with a place of business in Germany. Two modules are particularly relevant for project developers and operators of photovoltaic and battery storage systems: Module 3 (Process control technology and energy management software) and Module 4 (General process optimization, including electrical energy storage). The essential funding requirements, exclusions, and procedural guidelines are provided below.
This post refers to the official BAFA glossary version 7.6 of 04/01/2026, which here to be viewed or available for download.
Module 3: Energy Management Software and BMS Technology
Module 3 promotes investments in measurement, control, and regulation technology (MSR), sensors, and listed energy management software. This is the central funding module for the implementation of energy management systems.EMS) in the context of Photovoltaics and Battery storage.
What is being funded?
- Energiemanagement-Hardware (z. B. EMS-Gateway, MSR-Komponenten)
- License fees for energy management software listed with the BAFA
- Cloud-based software solutions (eligible for the funding period)
- Flow rate compensation (when integrated into an EMS)
- Sensors and Data Loggers
- Control and automation technology with a proven energy efficiency connection
Not eligible under Module 3 are battery storage systems, inverters, PV modules, delivery of the overall system, maintenance, updates, and license renewals after the approval period.
Technical Minimum Requirements for Module 3
According to the current overview, when applying for MSR (measurement, control, and regulation) and sensor technology, a system concept must be submitted, showing the integration of the supported technology into an energy management system listed by the BAFA. In addition, depending on the measure, the following documents are required:
- Data Acquisition Plan (for Measurement and Sensor Technology)
- Functional plan with purpose of control/regulation (for MSR technology)
- Bill of Materials for Actuators and Sensors
Important: The energy management software used must be listed in the official BAFA list of eligible software and integrated into the energy or environmental management system.
Module 4: Electrical Energy Storage & Process Optimization
Module 4 is the largely technology-open premium funding of the EEW program. It is aimed at measures to increase energy and resource efficiency in industrial and commercial processes – and is therefore the module with the broadest scope for PV and storage projects in the commercial and industrial context.
The prerequisite is always a Saving concept with proven greenhouse gas savings, which must be documented according to BAFA specifications. In addition, for selected measures (waste heat utilization, electrification, hydrogen), a Decarbonization bonus of up to 10 percentage points to be approved.
What is being funded?
- Electrochemical storage (battery storage) when CO₂ savings are proven according to the information sheet „CO₂ Factors.”
- PV systems as part of Electrification measures – d. h. Umstieg von einem fossilen Energieträger auf Strom aus erneuerbaren Quellen (Prozessumstellung)
- Measures for the electrification of processes (including Power-to-Heat, provided that the requirements of Annex M4, Section 2.5.3 are met)
- Process and procedure changes for energy and/or resource savings
- Measures for utilizing process waste heat (development, feeding into district heating networks, ORC power generation)
- Optimization of plants for heating, cooling, and ventilation (with predominant process relevance)
- Storage for electrical energy (capacitor banks, battery storage) while adhering to CO₂ guidelines
- MSR/EMS technology as an alternative to Module 3 – provided process relevance and savings concept are available
Electricity generation facilities already funded by the EEG are no longer eligible under Module 4. This also applies to gas storage facilities, redundancy systems, used facilities, biomass combustion plants (→ Module 2), CHP plants (→ Module 2), and measures without proven CO₂ savings potential.
Photovoltaics in the context of electrification, Module 4
Photovoltaics is in Module 4 not eligible for funding as an isolated power generation measure – the sole generation of electrical energy, according to the glossary, does not constitute a process within the meaning of the funding program. PV becomes relevant when it is an integral part of a Electrification measure This means that a fossil fuel is replaced by electricity from a renewable source, and the energy generated is primarily used for its own processes. The maximum total subsidy per interconnected project is 20 million euros.
Accordingly, the PV electricity generated must be used directly for the production of goods or the provision of services within the scope of an economic activity. Pure electricity generation (without process integration) or measures that predominantly feed useful heat into a public grid do not meet this requirement. Compliance with the process reference must be demonstrated in detail in the savings concept.
Funding Level by Company Size
The funding rates are subject to individual eligibility and the current BAFA guidelines:
| Company size | Employees | Subsidy amount |
| Small business | up to 49 | up to 45 % |
| Medium-sized business | 50 – 249 | up to 35 % |
| Large company | from 250 | up to 25 % |
Application Process: The Correct Procedure
For EEW-subsidized measures, no further public subsidies may be applied for. The prohibition of cumulation also includes EEG and KWKG remuneration as well as guarantees with subsidy value. Compliance must be declared in the proof of use. Here are the steps that must be followed:
1. Project planning and preparation of documents
Finalize system concept, data acquisition plan, quotes, and if applicable, bill of materials. Do not sign any contracts yet.
2. Application prior to project commencement
The funding application must absolutely be submitted before the project begins. The conclusion of supply or service contracts is already considered the start. Contracts may only be concluded between the application submission and approval with a condition precedent or subsequent.
3. Await approval
Implementation may only begin after the award notice has been received. Changes affecting the amount of funding must be reported within one month. Implementation must be completed within 36 months.
4. Implementation & Commissioning
Installation of hardware, integration into the EMS, documentation of energy key figures.
5. Submit proof of use
Within 3 months of commissioning: form, contractor declaration, proof of costs, all invoices including location details, proof of payment, and a clear project assignment identifier. All invoices must be in German.
6. Payout
The applicant pays upfront. After the BAFA's review of the proof of use, the grant will be disbursed.
Eligible companies
Companies of any size and from any industry with a place of business in Germany that can prove economic activity are eligible to apply. Municipalities and purely municipal enterprises are not eligible to apply. Municipal companies with their own legal form and independent legal personality may be eligible to apply under certain conditions.
Individuals, authorities, educational institutions, and companies without a branch in Germany are not eligible. Projects that have already begun implementation before the application is submitted are generally excluded from funding.