Following the launch of the calls in the RES+ Programme at the beginning of July, the State Environmental Fund of the Czech Republic (“SEF“) has launched further calls in recent days. The purpose of these new calls is to support the modernization of heat energy supply systems (“HES“).

1.  THE HEAT PROGRAMME

The first of these calls has been published under the HEAT Programme and it is the call No. 1/2025. Under this call, it is possible to apply for support for the reconstruction or replacement of a heat source (category A) or for the modernization and energy efficiency improvements of HES (category B). The funds of the HEAT Programme come from the so-called Modernization Fund.

Applications can be submitted from 7 July 2025 to 28 November 2025. The total allocation of the call is CZK 6 billion.

Category A supports the change of the fuel base of a heat source combusting fossil fuels to one of the following configurations:^[1]

1. biomass, bio-gas or methane, with or without combined heat and power (“CHP“);
2. ambient heat technologies with and without CHP, which includes heat pumps and geothermal energy installations;
3. waste heat recovery with and without CHP;
4. natural gas with CHP, provided that the installation does not burn natural gas exclusively and the technology is combined with one of the technologies listed in points 1 to 3 above.^[2]

However, projects consisting in the reconstruction or replacement of heat sources that are not part of the HES, projects consisting in the installation of photovoltaic plants or the replacement of heat sources without changing the fuel base, are not supported. Projects supported under Category A must be implemented within 60 months of the issuance of the Minister of the Environment’s decision to grant the subsidy, whereas projects under category B (modernization and energy efficiency improvements within HES) must be finalized within 36 months. In case the submitted project combines support under both category A and B, the project must be implemented within 84 months.

Eligible applicants for support under the call include owners of an existing thermal energy source who hold a license for the production of thermal and/or electrical energy or a license for the distribution of thermal energy, as well as owners of HES who do not hold one of the licenses listed above, but the relevant infrastructure owned by the applicant is operated by an entity with the relevant license. Owners of new heat sources may also apply for support if the heat output of such sources is fed into an existing HES, provided that the new heat source replaces all or part of the output of the existing heat source.^[3]

It is also worth mentioning a list of certain parameters that the supported projects must fulfil. For category A, the project must result in a minimum 20% reduction in carbon dioxide emissions compared to the previous situation, a minimum 15% reduction in energy consumption from non-renewable sources and an overall reduction in primary energy consumption.

In the case of category B, the call No. 1/2025 requires that the modernization and efficiency improvement project in the HES must result in a reduction of carbon dioxide emissions of at least 20 % and a reduction of primary energy consumption of at least 20 %.

2. I+ PROGRAMME FOR INNOVATIVE AND COMPLEX PROJECTS

The purpose of this programme is to increase energy efficiency in the heating sector through the construction of new district heating transmission systems. Of course, activities already supported under the HEAT Programme, i.e. the reconstruction or replacement of heat sources or the construction of new CHP plants, are not supported under this programme.

Applications can be submitted from 10 July to 30 September 2025. The total allocation of this call is higher than for the call No. 1/2025 of the HEAT Programme, as it foresees CZK 11 billion.

The funds allocated to the I+ Programme come directly from the SEF and were approved by a resolution of the Government of the Czech Republic on 9 July 2025. It should be added that only projects that have already been approved as projects of the so-called Innovation Fund can participate in the call, since the subsidy support under the call No. 1/2025 of the I+ Programme is intended to fill the cost gap in financing the already approved projects.

The supported projects must be implemented within 84 months of the decision of the Minister of the Environment to grant the funds. Similarly to the HEAT Programme, the implementation of the supported projects must result in a reduction of carbon dioxide emissions and a reduction of primary energy consumption, but in this case a reduction of at least 10% compared to the situation before the implementation of the project is sufficient.

In practical terms, the application for subsidy support is the same for both calls – the application is submitted electronically through the SEF system, which is available on the website www.sfzp.cz. The range of documents required for the application is fairly standard, so applicants must expect to submit, for example, project documentation, an energy assessment, documents for the assessment of a company in difficulty, as subsidy support may not be granted to such companies, and documents to verify the ownership structure of the project to avoid potential conflicts of interest and ensure transparency.

Further information on the HEAT programme can be found on the SEF website here. Relevant information on the I+ programme can be found here.

Should any further calls be published by the SEF, we will inform you without delay.

[1]     The choice of configuration also determines the amount of eligible project costs that can be financed through subsidy support.

[2]     Furthermore, the natural gas heat production of such a source must not exceed 75 % of the total annual heat production.

[3]     Again, the applicant must hold one of the following licenses: generation of thermal or electric energy or distribution of thermal energy.

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