Budget and regional focus of the scheme
The program is launched with a total budget of HUF 38.7 billion, of which 65% of the resources are allocated to enterprises operating in the four least developed regions – Southern Great Plain, Southern Transdanubia, Northern Great Plain, and Northern Hungary. The remaining 35% can be used in the regions of Central Transdanubia, Pest, and Western Transdanubia.
Water utility service providers will have access to a separate funding allocation, with a maximum of HUF 3 billion available to them.
Objective of the Program
The main goal of the loan is to ensure that participating SMEs reduce their primary energy consumption by at least 30%. This may be achieved through:
- building energy efficiency upgrades (e.g., insulation, window/door replacement),
- technology or process modernization (e.g., equipment replacement, waste heat utilization),
- or through a complex investment, where multiple interventions are implemented together.
Financing Conditions
- Interest-free loan amount: minimum HUF 10 million, maximum HUF 500 million.
- Term: up to 120 months, depending on the amortization rate.
- Own contribution: at least 10% of the eligible project costs.
- Expected energy savings: minimum 30%.
Eligible Activities
A) Building Energy Efficiency
- building insulation
- replacement of doors and windows
- modernization of lighting systems and domestic hot water systems
- increasing the efficiency of cooling and heating systems
At least two building element types must be modernized!
B) Technological Modernization
- procurement of energy-efficient machines and technologies
- utilization of waste heat
- modernization of technology and industrial compressed air systems
C) Water Utility Sector
- only the modernization of mechanical components (e.g., pumps) owned by the applicant that improve energy efficiency is eligible
Exclusions and Limitations
The use of the program is subject to numerous exclusionary and restrictive conditions that applicants must take into account already during the project planning phase. The scheme is not available to start-up enterprises, meaning companies without at least one full closed business year are not eligible. Another important criterion is that projects must be implemented outside Budapest – implementation within Budapest disqualifies the applicant, regardless of the company’s headquarters.
Investments based on the use of fossil fuels – such as coal or natural gas – are also excluded, including the development of heating or cooling systems using such sources. Likewise, vehicle procurement and real estate purchases are not eligible.
Lastly, it is important to highlight that artificial splitting of projects is also a disqualifying factor. This means that submitting the same investment objective as multiple separate projects solely to stay within the maximum loan amount limit is not allowed.
Submission and Deadlines
Applications can be submitted until May 31, 2027, or until the budget is exhausted. The project must be completed within 24 months from the signing of the loan agreement.
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