Upgrading the HVAC in a commercial premises, replacing an old boiler with a heat pump, installing photovoltaic panels on a warehouse roof or improving a building’s insulation are investments that pay for themselves in the medium term through energy savings. But the upfront cost remains a real barrier for many businesses.
European, national and regional administrations have launched a broad range of grant programmes and tax incentives in recent years to facilitate the energy transition for businesses. This article outlines the main funding lines available in 2026 for companies in the Valencian Community.
Next Generation EU funds: the European push
The Next Generation EU funds, channelled through the Spanish Government’s Recovery, Transformation and Resilience Plan, have represented the largest injection of resources for energy efficiency in decades. Although the first calls were published in 2021, the programmes remain active with successive extensions and new funding lines.
PREE 5000 programme (building energy rehabilitation)
Aimed at existing buildings of any use (residential, commercial, industrial, tertiary). It funds improvements to the thermal envelope (insulation, windows), replacement of thermal installations (HVAC, heating, DHW) and installation of renewable energy for self-consumption.
Key points:
- Grant intensity: up to 40-65% of eligible costs, depending on the energy improvement achieved and company size.
- Main requirement: the intervention must improve the building’s energy rating by at least one grade.
- Eligible costs include the installation, technical project and site supervision.
- Managed in the Valencian Community by IVACE (Valencian Institute of Business Competitiveness) or the relevant regional ministry.
Self-consumption and storage incentive programme
Direct grants for the installation of photovoltaic self-consumption systems (with or without surplus) and battery storage systems.
Key points:
- Grants of 300 to 500 euros per kWp installed for photovoltaic self-consumption in the industrial sector.
- Additional grants of 140 to 490 euros per kWh for battery storage.
- Compatible with tax deductions.
IVACE grants for industrial companies
IVACE (Valencian Institute of Business Competitiveness) manages its own funding lines for energy efficiency and renewable energy deployment in the Valencian Community’s industrial and services sectors.
Energy savings and efficiency in industry
Designed to fund energy-saving measures in industrial processes and auxiliary installations.
Eligible interventions:
- Replacement of HVAC equipment with higher-efficiency systems.
- Installation of variable frequency drives for electric motors.
- Lighting system improvements.
- Compressed air system optimisation.
- Waste heat recovery.
- Implementation of energy management systems.
Typical conditions:
- Grant intensity: up to 30-45% of eligible costs for SMEs, slightly less for larger companies.
- Minimum eligible investment: generally between 10,000 and 15,000 euros.
- Execution period: typically 12-18 months from the decision.
- Prior energy audit required in many programmes.
Renewable energy and self-consumption line
Complements national programmes with specific grants for Valencian Community businesses installing photovoltaic, solar thermal, biomass or geothermal self-consumption systems.
Tax deductions for energy efficiency
In addition to direct grants, businesses can benefit from significant tax incentives:
Corporate tax deduction
Investments in assets that contribute to environmental protection may qualify for a deduction on the corporate tax liability. The percentages vary according to the legislation in force for each tax year, but have ranged between 8% and 15% of the investment.
Income tax deduction for self-employed workers
Self-employed workers can apply deductions for energy efficiency investments in their business premises, under conditions similar to those for residential buildings:
- 20% deduction on amounts invested in works that reduce heating and cooling demand by at least 7%.
- 40% deduction on amounts invested in works that reduce non-renewable primary energy consumption by at least 30% or improve the building’s energy rating to class A or B.
Accelerated depreciation
High energy efficiency equipment may qualify for accelerated depreciation rates, allowing businesses to deduct costs more quickly and improve cash flow in the early years.
How to estimate the grant for your project
To estimate the grant you might receive, you need to define:
- Type of intervention: what you plan to install or upgrade.
- Budget: total cost of the installation, including equipment, labour and technical project.
- Expected energy improvement: consumption reduction or energy rating improvement, which can be estimated through a prior audit or technical study.
- Company size: SMEs generally receive higher grant percentages than large companies.
Indicative example:
| Intervention | Investment | Estimated grant | Annual savings | Payback with grant |
|---|---|---|---|---|
| HVAC replacement with heat pump | 45,000 euros | 15,000-20,000 euros | 8,000 euros | 3-4 years |
| 50 kWp photovoltaic self-consumption | 35,000 euros | 10,000-15,000 euros | 9,000 euros | 2-3 years |
| LED lighting conversion | 18,000 euros | 5,000-8,000 euros | 5,000 euros | 2-3 years |
| Industrial roof insulation | 25,000 euros | 8,000-12,000 euros | 4,000 euros | 3-4 years |
These figures are indicative and depend on the specific call, company size and demonstrated energy improvement.
Common requirements for applying
Although each programme has its own conditions, most share these requirements:
- Work must not have started before the application (or before the date specified in the call). Acting before applying can invalidate the grant.
- Three comparative quotations from different suppliers for significant-value interventions.
- Energy audit or energy certificate of the current state of the building or installation.
- Technical project or report signed by a qualified technician.
- Up to date with tax and Social Security obligations.
- Not in a crisis situation as defined by EU state aid rules.
Common mistakes when applying for grants
- Starting work before applying: this is the most serious and most frequent mistake. In most programmes, the start date must be after the application submission date.
- Incomplete technical documentation: an incomplete project or insufficient technical report can delay or lead to rejection of the application.
- Failing to justify the energy improvement: the grant is conditional on demonstrating a real, quantifiable improvement. A simple equipment quotation is not sufficient.
- Forgetting to check compatibility between grants: some grants are compatible with each other and with tax deductions, but in no case may the combined grants exceed 100% of the intervention cost.
Calendar and deadlines
Grant calls are typically published in the first months of the year, with application windows ranging from 30 days to several months (or until funds are exhausted). It is essential to monitor publications from IVACE, IDAE (Institute for Energy Diversification and Savings) and the Official Gazette of the Valencian Regional Government (DOGV).
Applications are usually submitted electronically, and resolution timeframes range from 3 to 6 months. Justification of the completed work must be submitted within the deadline established in the grant decision.
How we can help
At Acoval, we do not just carry out the installations — we also support our clients in preparing the technical documentation required for grant applications. We prepare the technical project, energy savings study and certification that grant calls require.
If you are planning an improvement to your HVAC, heating, electrical installation or industrial refrigeration and want to know which grants you can access, contact us. We will guide you on available funding lines and help you prepare the application.
