Investment Aid for Energy Efficiency Projects

Malta Enterprise Corporation and the Energy and Water Agency shall be providing assistance to undertakings seeking to carry out investments leading to improved energy-efficiency. Applications under this Scheme are to be submitted before ‘Start of Works’ and will be received until 31 October 2023.

The support, which shall be in the form of a cash grant or a tax credit or a combination of both, is intended to facilitate investments in technological solutions that provide higher energy efficiency and contribute directly towards a reduction in the energy requirements of the beneficiaries.

Eligible projects and costs

This incentive is available to eligible undertakings which undertake eligible projects, including:

a) Investment in substitution or upgrading of equipment and installations to reduce energy consumption.

b) Renovation or upgrading of equipment of existing installation for heating (or cooling) systems.

c) The improvement of energy efficiency of existing illumination systems.

An eligible project requires an investment of at least €10,000 that is directly related to achieving energy savings, and must achieve a proven energy saving of at least 10%. It must be supported by an energy audit or a specific proposal assessment prepared by a certified energy auditor or a warranted engineer.

The eligible costs, which should be directly linked to the achievement of a higher level of energy efficiency, shall be determined as follows:

a) where the costs of investing in energy efficiency can be identified in the total investment cost as a separate investment, this energy efficiency-related cost shall constitute the eligible costs;

b) in all other cases, the costs of investing in energy efficiency are identified by reference to a similar, less energy efficient investment that would have been credibly carried out without the aid. The difference between the costs of both investments identifies the energy efficiency-related cost and constitutes the eligible costs.

Aid shall not be granted to investment in new buildings or extensions of existing buildings and on investments related to the generation of electricity such as PV installations.

The total investment aid, which will not exceed €15 million per undertaking per investment project, may not exceed the maximum aid intensity of 50%, 40% and 30% for small, medium-sized and large enterprises respectively.

How can we help?

Deloitte Malta is able to assist in answering your queries, so please do not hesitate to reach out to us for any further guidance you may require.

In addition, Deloitte Malta is able to assist with the preparation of the required applications and any supporting documentation, as well as document submission and any required follow-ups.