2024/02/14
The government proposes to finance the installation of individual energy storage systems not only for citizens but also for companies. We will explain in detail what they are and, most importantly, how their installation can benefit your business.
What is renewable energy?
Renewable energy is energy obtained from natural sources that are replenished at a rate exceeding the rate of consumption. Examples of such constantly replenished sources include sunlight and wind. Renewable sources can provide a vast amount of energy and surround us everywhere.
In contrast, fossil fuels such as coal, oil, and gas are non-renewable resources that take hundreds of millions of years to form. Burning fossil fuels for energy production releases harmful greenhouse gases such as carbon dioxide.
Obtaining energy from renewable sources is associated with much lower emissions than burning fossil fuels. Transitioning from fossil fuels, which currently account for the majority of emissions, to renewable energy sources is crucial for addressing the climate crisis.
Today, renewable energy sources are a cheaper alternative in most countries and create three times more jobs than fossil fuels.
What are individual energy storage systems?
Energy production from renewable sources depends on natural conditions and does not provide uninterrupted power supply. For example, when the sun is shining during the day, a solar power station generates and supplies energy, but when it is not, the power station does not generate or produce enough energy to meet the current needs.
To address this issue, storage devices are used to accumulate excess electricity during periods of intense production and use it when electricity generation is low.
What is the program, and which storage systems is the government ready to invest in?
The government is ready to assist with the acquisition and installation of lithium iron phosphate or lithium-ion electric energy storage systems with a capacity of up to 500 kWh.
It is envisaged that the costs of installing an individual electric energy storage system will be covered by a fixed unit rate—€744.23 excluding VAT for the installation of a lithium iron phosphate storage system and €646.41 excluding VAT for a lithium-ion storage system. The fixed cost rates per kWh are multiplied by the specific power of the planned individual electric energy storage system installation, which cannot exceed 500 kWh.
Funding will range from 25% to 30% depending on the applicant.
The project cost is calculated by multiplying the selected fixed rate by the power (kWh) of the storage system planned for installation. For example, if a small company wishes to install a lithium iron phosphate battery with a capacity of 100 kWh: the maximum possible funding amount will be €744.23/kWh * 100 kWh * 25% = €18,605.75.
The program implementation is scheduled for 32 months—from September 2023 to May 2026. Its goal is to create 15 MW of new (individual) electricity storage capacity generated from renewable energy sources by May 31, 2026.
The program budget is €3,429,486.76.
Who is eligible for funding?
Micro-enterprises (companies with no more than 10 employees and an annual income not exceeding €2 million) and small enterprises (companies with no more than 50 employees and an annual income not exceeding €10 million) registered at least 1 year before the application submission;
Farmers whose farms have been registered in the Farm Register for at least 1 year before the application submission;
Renewable resource energy associations (AIEB) whose shareholders do not include medium-sized companies and/or companies managed by municipalities;
Civil energy associations (PEB).
Funding applications will be selected through a tender process.
It is worth noting that it is advisable to prepare an application now to submit it at the beginning of the program opening: as practice has shown, there is significant interest, but funding is limited.
More detailed information on how to submit an application and technical requirements is published on the websites www.esinvesticijos.lt and www.ena.lt.
