The Factory and Business Site Type (Type I) under the FY2026 supplementary budget’s energy-saving investment subsidy program requires applicants to prepare an energy-saving plan for the entire business site and apply by combining replacements of eligible equipment with custom-made equipment or advanced equipment. The first and second application rounds have closed, and details of the third round are awaiting publication by SII.
This article explains and organizes the information needed when considering an application for Type I, including eligible equipment categories and application tracks, subsidy rates and maximum amounts, requirements, the FY2026 application schedule, and examples of selected projects. Applicants must satisfy multiple conditions, including both an energy-saving plan for the entire factory or business site and energy-saving requirements for individual equipment, as well as requirements concerning the investment payback period and applicant classification.
Type I covers 3 categories of equipment: designated equipment, custom-made equipment, and advanced equipment and systems. Designated equipment in particular covers 15 categories, including air conditioners, boilers, and transformers. Custom-made equipment and advanced equipment are also installed in combination with an energy-saving plan for the entire business site.
Four application tracks have been established: the Advanced Track, General Track, SME Investment Promotion Track, and Supply Chain Collaboration Track. Each track sets its own energy-saving and investment payback-period requirements. The application periods are from late March to late April for the first round, June to July for the second round, and for the third round, details will be announced once published.
Subsidy rates and maximum amounts vary by track and business type, with maximum amounts of ¥1.5 billion for a single fiscal year and up to ¥4 billion for multi-year projects. The treatment of maximum amounts also differs for multi-year projects and collaboration tracks. In addition, requirements for individual equipment have been introduced, with both energy savings across the entire business site and the energy-saving effect of individual equipment evaluated.
Examples of selected projects include the replacement of high-efficiency equipment at chemical plants, printing plants, and food-related factories. These examples demonstrate the combination of overall optimization under Type I with energy savings from individual equipment.