Funding for a farm biogas plant in Germany comes mainly through the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG): you receive a statutory value for the electricity you feed in for 20 years, for small manure plants under section 44 EEG. Direct investment grants for the plant itself are the exception. On top of that, low-interest development loans, grants for heat networks and wood boilers, and programmes run by individual federal states may apply. Everything here reflects the situation in October 2026; funding schemes often change at short notice.
The EEG as the main instrument
For new small manure plants (Gülle-Kleinanlagen), section 44 EEG sets a reference value (anzulegender Wert) of 22 euro cents per kWh up to 75 kW rated output (Bemessungsleistung) and 19 cents per kWh up to 150 kW. Under section 44a EEG these values fall by 0.5 per cent a year for newly commissioned plants; for commissioning from 1 July 2026 they work out at around 21.67 and 18.72 cents per kWh. Conditions include an annual average of at least 80 per cent manure by mass and no more than 150 kW installed capacity at the site.
How the value is calculated pro rata between 75 and 150 kW, and which deductions apply under the fixed feed-in tariff, is explained in the guide to the EEG feed-in tariff for biogas. Larger new plants, and existing plants whose support has ended, have to take part in tenders run by the Federal Network Agency (Bundesnetzagentur).
For financing, note that the EEG payment is not a capital grant but a revenue stream secured for many years. Banks assess exactly this cash flow when deciding on a loan.
Investment support from the federal states
Farm investment support (Agrarinvestitionsförderungsprogramm, AFP) is run by the federal states, based on the joint federal and state task for agricultural structures (GAK) and Germany’s CAP Strategic Plan. Each state decides whether biogas plants or parts of them are eligible. Plants generating electricity paid under the EEG are often excluded or only partly eligible. Depending on the state, these are more likely to qualify:
- slurry stores and their covers, where they go beyond legal minimum requirements
- emission-reducing technology in livestock housing and slurry spreading
- energy-saving measures on the farm
Grant rates, minimum and maximum project sizes and income thresholds differ from state to state. Check your state’s current guideline and talk to the approval body early.
Development loans from KfW and Rentenbank
For the biogas plant itself, the combined heat and power (CHP) unit or a heat network, development loans are the usual route. Two programmes are particularly relevant for farms:
| Programme | What is funded | Application |
|---|---|---|
| KfW Renewable Energies Standard (270) | plants generating electricity and heat from renewables, heat networks, storage | through your own bank |
| Rentenbank “Energie vom Land” | generation, storage and distribution of renewable energy in agriculture and forestry, up to 100 per cent of eligible costs | through your own bank |
For plants receiving EEG payments, development banks often only grant interest terms that are unproblematic under state aid rules. Rates change constantly and depend on creditworthiness and collateral. Ask your bank for binding terms and compare them with an ordinary investment loan.
Heat networks: BEW and building networks
If you want to supply neighbours with heat from the CHP unit or a wood chip boiler, the Federal Funding for Efficient Heat Networks (Bundesförderung für effiziente Wärmenetze, BEW), administered by the Federal Office for Economic Affairs and Export Control (BAFA), may apply. It is divided into modules:
- Module 1: feasibility studies and transformation plans, grants of up to 50 per cent of eligible costs.
- Module 2: systemic funding for building and converting heat networks, for new networks with a high share of renewable heat and waste heat. A feasibility study and a calculation of the profitability gap are required.
- Module 3: individual measures on existing networks.
- Module 4: operating cost support for certain technologies such as solar thermal and heat pumps.
The share of biomass in heat generation is capped under the BEW. Smaller networks serving only a few buildings are not covered by the BEW but count as building networks (Gebäudenetze) under the Federal Funding for Efficient Buildings (BEG). Practical aspects are covered in the guide to biogas heat use.
Wood heating and buildings: BEG
Replacing an old heating system with a biomass boiler is funded under the BEG individual measures, for private owners of residential buildings through KfW. The base rate is 30 per cent of eligible costs, and bonuses may be added. Wood boilers must meet extra technical requirements, for example on dust emissions and buffer tanks. Some bonuses are being reduced step by step, and the future of heating subsidies is under political discussion. Technical details are in the guide to wood heating on the farm.
For process heat in businesses, the Federal Funding for Energy and Resource Efficiency in Industry (EEW) may apply. The federal programme for energy efficiency and CO2 savings in agriculture and horticulture, managed by the Agency for Renewable Resources (FNR), accepted applications until 31 May 2026 because the 2026 budget was largely used up. According to the FNR, reopening is envisaged for the end of 2026, subject to the 2027 federal budget.
Regional schemes and practical rules
Beyond federal and state level, some districts, municipalities and LEADER regions fund feasibility studies, local heat networks or energy advice. These schemes are small but can be useful in the planning phase.
Whatever the scheme, a few basic rules apply:
- Apply before you start: do not sign supply or construction contracts before the application is submitted or an early start has been approved.
- Check combinations: clarify which forms of support can be combined and whether the EEG payment limits the amount.
- Note deadlines and commitments: many schemes require the asset to be used for its purpose for several years and proof of how funds were spent.
- Involve specialists: planning offices know current schemes and the usual pitfalls in applications.
The sequence in practice
A fixed sequence helps ensure no application fails on a formality:
- Outline the project: output, site, heat use, rough costs.
- Check profitability without funding and run scenarios.
- Get funding advice, for example from the chamber of agriculture, the state office or a planning firm.
- Arrange financing with your bank and apply for development loans at the same time.
- Submit grant applications and only award contracts after applying or after approval.
- Keep invoices, payment records and photos carefully, because proof of use will require them later.
Allow time for approvals. Depending on the scheme and the number of applications, several weeks to months can pass between application and decision. For schemes with application freezes or deadlines, prepare the documents completely in advance.
Run the numbers without grants first, for example with the biogas calculator, and treat funding as an improvement rather than the basis of profitability. Planning offices that also handle funding applications are listed in the provider directory.
Frequently asked questions
Is there an investment grant for a small manure biogas plant in Germany?
As of October 2026 there is no nationwide grant specifically for small manure plants. Support comes mainly through the EEG payment. Some federal states fund parts such as slurry stores or covers, under very different conditions. Ask the chamber of agriculture or the responsible state office.
Can EEG payments be combined with investment support?
Partly, but EU state aid cumulation limits apply. Funding bodies usually ask whether the plant receives EEG payments and often then only grant terms that do not count as state aid. Clarify the combination with the funding body before you apply.
When do I have to apply for funding?
Almost all schemes require the application before the project begins. Signing a supply or construction contract usually counts as the start. Planning work is often allowed beforehand, but each scheme sets its own rules.
Where can I find current German funding schemes?
The federal funding database (Förderdatenbank) gives an overview of federal and state schemes. For agricultural programmes, the chambers of agriculture, state research institutes and the Agency for Renewable Resources (FNR) are good contacts.
How much power and revenue could your livestock deliver? Run the numbers with open assumptions.
Open the biogas calculator