The ENERG Programme from the National Development Bank of the Czech Republic, is making investments in energy efficiency more accessible to SMEs in Prague through providing interest-free loans for energy-saving projects. It supports a wide range of measures, including building insulation, modernising energy systems, installing renewable energy and heat pumps, and upgrading lighting and distribution networks. The programme combines financial support with incentives, such as grants for energy assessments and performance-based bonuses tied to achieved energy savings. Third-party assessments ensure measurable impact, while the combination of a loan and grant component lowers upfront costs and strengthens the business case for green investments.
National Development Bank of the Czech Republic – ENERG Programme, Prague
Abstract
The ENERG Programme is an initiative by the National Development Bank (NRB) of the Czech Republic designed to support businesses in Prague with interest-free loans for energy-saving projects. This programme complements the broader Energy Savings Programme but is specifically tailored to projects within the capital city.
Loans range from CZK 500,000 to CZK 60 million (approximately EUR 20 000 to EUR 2.4 million), covering up to 70% of eligible project expenses. Loans have a maturity of up to 10 years, with a possible grace period of up to 2 years. NRB does not charge interest, nor fees. The programme is available to businesses of all sizes and sectors, operating within the city of Prague.
The programme supports a variety of energy-saving initiatives, as follows:
insulation of buildings intended for business and replacement of windows, doors, heat recovery, etc.;
replacement of air-conditioning with more energy-efficient air-conditioning;
modernisation of self-consumption energy generation equipment;
installation of renewable energy generation and heat pumps, if implemented together with other measures;
lighting of buildings and industrial premises;
reconstruction of electricity and gas distribution systems related to the reduction of the energy consumption of the building.
In addition to the loan, beneficiaries can also receive a non-repayable financial contribution akin to a grant provided by the programme to businesses as an incentive for implementing energy-saving projects. This consists of two possible components:
Energy assessment: This covers up to 80% of the costs of an energy assessment report with a cap of CZK 100 000 (approximately EUR 4 000).
Performance-based bonus: A financial contribution of 7% of the utilised loan amount is provided upon achieving the planned energy savings.
The National Development Bank (NRB) is a specialised state-owned banking institution aimed at contributing to sustainable economic development of Czechia. It is the main provider of financing instruments funded from public and European resources as well as from own resources and in cooperation with private financing providers.
The ENERG programme is exclusively available in Prague, aligning with the European Commission’s requirements for advanced regions. A very similar programme has been established for the other regions of the country and financed by the European Commission (as the capital region is not eligible because of its high-income status).
This programme aligns with Czechia’s national priorities for the greening of businesses, as outlined in its Energy and Climate Plan, adopted in 2019, which emphasises energy efficiency improvements, renewable energy adoption, and reduced energy intensity in line with EU climate targets and directives. The NRB’s role extends to providing financial support in a way that balances regulatory obligations, such as adhering to state aid rules and ensuring fair competition, while enabling businesses to overcome structural barriers, including the high upfront costs of energy-efficient technologies.
Reasonable prerequisites for participation: To access the programme, SMEs do not have to respect strict energy efficiency requirements; it allows for a minimum 10% energy efficiency savings, in order to encourage SMEs’ participation. Higher requirements are perceived as unproductive as it would lower the number of participating companies too much. The verification process is structured in two stages: an initial estimation at the start of the project, followed by a more detailed verification if the company applies for a grant.
Balancing of administrative requirements with accessibility for SMEs: The application process for NRB programmes is more complex than that of commercial loans, as businesses have to meet additional eligibility criteria, including, for instance, state aid compliance, beneficiary ownership checks and financial viability assessments. Hence, administrative complexity, particularly for micro-enterprises, can often act as an obstacle in the process and deter SMEs from applying. Efforts have been made to simplify reporting obligations, including the introduction of a calculator to help businesses estimate energy savings and understand financial benefits. The national development bank’s advisory arm has also supported companies in navigating the process, and it has a help desk to assist them.
Blended financing to incentivise investment: The combination of a zero-interest loan and a subsidy component has proven effective in making the programme financially attractive while encouraging businesses to invest in energy efficiency. This blended approach lowers upfront costs and improves the business case for green investments, particularly for SMEs with limited capital.
Energy savings assessments as a targeted support tool. A key success factor is the inclusion of an energy savings assessment, which most beneficiaries undertake as part of the support package. Conducted by accredited providers, these assessments help businesses identify climate- and cost-effective investments, aligning environmental goals with operational needs. For smaller firms especially, this guidance ensures that decisions are both environmentally sound and financially viable.
Verification through third-party assessments. These externally verified assessments also offer assurance to NRB that the support is delivering measurable environmental impact. By providing an objective estimate of expected energy savings, they reduce the need for intensive post-disbursement monitoring and detailed reporting, lightening the administrative burden, particularly for smaller enterprises.
Adaptive design to maintain financial attractiveness. Originally launched with a 2% interest rate, the loan component was reduced to zero from February 2025, in line with declining market rates, to keep the programme competitive with private financing options.
Improved accessibility through direct grant application. To further enhance accessibility and appeal, particularly for businesses with tight cash flow, the programme introduced a mechanism to apply grants directly to reduce loan balances, rather than issuing them separately. This makes the financial benefit more immediate and tangible, helping overcome internal hurdles related to payback concerns and increasing uptake among cautious or resource-constrained firms.
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