- Posted by: Press Office
- Category: Fund consulting
Malta Enterprise Corporation in collaboration with the Energy and Water Agency shall be supporting undertakings in carrying out investments leading to improved energy-efficiency. The assistance 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.
The aid awarded through this measure shall be in the form of a cash grant or a tax credit (which can be utilised against tax payable by the beneficiary) or a combination of both. Approved projects must commence within six (6) months from the date they are approved and should be completed within thirty-six (36) months from approval date. A project shall be considered to have commenced when the firm enters into a contractual obligation that makes it difficult from an economic standpoint to abandon the project.
This incentive is available to eligible undertakings duly registered in the European Union as a partnership en nom collectif, en commandite or a limited liability company or a similar set-up, has an operating base in Malta, and which adhere to the applicable State Aid regulations.
Projects must have the aim of improving energy efficiency and may include:
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.
To be considered eligible the project must entail an investment of at least ten thousand Euro (€10,000) that is directly
related to achieving energy savings.
You also need to provide a corroborated justification from a competent person that the resultant estimated energy saving to be achieved as a result of implementing the proposed investment will be of at least 10%.
The Corporation may support investments in tangible assets procured as part of a project carried out by an eligible undertaking to achieve a higher level of energy efficiency. The project must be supported either by an energy audit or a specific proposal assessment prepared by a certified energy auditor or a warranted engineer who would clearly describe and
identify the proposed project and its expected benefits.
Only costs directly linked to the achievement of a higher level of energy efficiency shall be considered eligible.
The eligible costs shall be the extra investment costs necessary to achieve the higher level of energy efficiency. They 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.
Costs not directly linked to the achievement of a higher level of energy efficiency shall not be eligible.
Aid shall not be granted where investment and/or improvements are undertaken to comply with Union standards already adopted, even if they are not yet in force.
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.
Costs incurred from third parties related directly to the procurement and installation of an eligible investment shall be considered as part of the investment if such transaction is carried out at arm’s length.
The Corporation shall award support under this measure until 31st December 2023, yet it may, at its own discretion close the scheme at an earlier date. Applications for support must be submitted to the Corporation by not later than 31st October, 2023.
Approved projects must commence within six (6) months from the date they are approved and should be completed within thirty-six (36) months from approval date. A project shall be considered to have commenced when the firm enters into a contractual obligation that makes it difficult from an economic standpoint to abandon the project.
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