In our previous blog, the grant was still under public consultation – now, the final version of the call has been published. Here's what you need to know!
What is this grant, and why is it important?
This funding opportunity aims to modernize district heating systems across Hungary. The main goal is to provide cheaper, greener, and more reliable heating in cities that already operate district heating infrastructure.
What does this mean in practice?
Supported actions may include:
- separation and modernization of heat distribution centers
- replacement and underground installation of district heating pipelines
- construction of heat storage units
- integration of renewable or waste heat-based producers into the system
These may be complemented by essential associated activities, such as: engineering and technical planning, public procurement procedures, project management or implementation of remote monitoring and control systems.
What is not eligible for funding?
- consumer-side developments (e.g. radiator replacement)
- fossil-fuel based projects (with the exception of natural gas)
- real estate purchases
What is the funding amount?
The total budget of the program is HUF 45 billion.
- HUF 25 billion for energy efficiency and heat storage development
- HUF 20 billion for renewable and waste heat utilization
Each project may receive between HUF 20 million and HUF 1.5 billion in funding.
In the final call, it was confirmed that entities with natural monopoly status may be eligible for up to 100% support. Market-based players receive a baseline 30% intensity, which can be increased depending on company size.
Who can apply?
Only licensed district heating providers who:
- are legal entities headquartered in Hungary or the EEA
- are organized as business entities, municipal companies, or nonprofits
- meet (or commit to meeting) the EU criteria for “efficient district heating”
One of the eligibility conditions is having at least one completed business year and non-negative equity.
Individuals or households cannot apply, but local residents will benefit if their city’s district heating company utilizes the opportunity.
When to apply?
Applications will be accepted in multiple phases. The first submission window is:
- From June 18 to July 31, 2025. Apply early - funds may be depleted quickly.
This is followed by four more rounds, continuing until spring 2026.
What are the benefits for society?
- lower greenhouse gas emissions: cleaner air, more sustainable cities
- more stable heating prices: savings could be reflected in consumer tariffs
- new technologies: smart control, improved efficiency
- national green goals: supports Hungary’s target of 50% GHG reduction by 2030
For further information or consultation, please fill out our contact form.