Investment Aid for Energy Efficiency Projects

Malta
Phase: Management
Type:
  • Access to finance
  • Transition to a climate-neutral economy
  • Support of companies' growth
  • Support of SMEs
Last modified: 08 January, 2021
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Investment Aid for Energy Efficiency Projects

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Investment Aid for Energy Efficiency Projects

Coverage/Eligibility

This incentive is available to undertakings that are duly registered in the European Union and that have an operating base in Malta. To qualify, applicants must operate in one of the following core activities: manufacturing; repair, overhaul and maintenance of aircraft and/or electromechanical equipment; information hosting and/or processing; waste treatment; accommodation and food service activities; packaging activities; human health and social work activities; and washing and dry-cleaning of textiles. Other activities not mentioned in the list above may also be eligible as long as their investment would translate in energy savings of at least 20%.

Eligible applicants must conform to the applicable state aid regulations. If an undertaking is engaged in activities in addition to the aforementioned eligible core activities, funding must translate in energy efficiency in the operation of the eligible core activities. Eligible applicants are also bound to make a minimum investment of €25,000 of the eligible costs.

Main characteristics

This aid, which is under the form of a tax credit, is administered by Malta Enterprise. It is aimed at supporting eligible investments in tangible assets procured to achieve a higher level of energy efficiency. The total aid may not exceed the maximum aid intensity allowable in relation to the size of the undertaking: Small undertakings may benefit from 50% of their costs, while medium undertakings may benefit from 40% and large undertakings may benefit from 30%. The size of the undertaking is determined by an adjudication process. Applications are processed on a first-come-first-served basis until the budget allocated for this measure is fully utilised.

Funding

  • National funds

Involved actors

National government
Malta Enterprise in collaboration with the National Energy and Water and Agency.

Effectiveness

No information available. 

Strengths

Given that applicants whose investment translates in energy savings of at least 20% are eligible, this aid potentially targets a wide number of applicants across varied sectors. Besides, one should note that this aid puts a particular emphasis on supporting green initiatives such as waste management.  

Weaknesses

There is very little information for potential applicants to determine what constitutes a small, medium, or large undertaking, consequently making it hard for potential applicants to estimate the aid that they might be eligible for. This aid is open for the first 100 eligible applicants every year though there remains a possibility that the funds allocated for this aid are used up before the 100 applicant target is even reached. Given this scenario a request could be made for additional funds although allocation of such funds is not guaranteed.  The guidelines could be clearer, as although they stipulate that applications should be submitted by the end of April, they fail to mention that late applications are accepted until the end of the year, on condition that the allocated funds are not exhausted. The €25,000 that applicants must invest in order to be eligible might also be viewed as too large a sum for smaller companies to even consider applying for this aid. 

Examples

No information available.
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