The European Commission has published the final terms of the IF26 Heat Auction. This is the second Innovation Fund auction for industrial process heat, with a total budget of EUR 1 billion. The call is expected to open in December 2026, and the winning bids will be announced in May 2027.
A long-awaited change for solar heat is a new category for process heat between 80 and 100 °C. It has its own budget of EUR 100 million, and electric boilers cannot take part.
This category suits large-scale industrial solar heat with flat-plate collectors, like the systems supplied by Savosolar, the Finnish company recently acquired by Absolicon.
Process heat between 100 and 400 °C, where Absolicon’s concentrating solar collectors fit, has a budget of EUR 600 million. Higher temperatures have EUR 300 million.
Solar heat and other technologies get a 25 percent bonus in the bidding compared with electric boilers. This gives them a clear advantage in the competition for funding.
About the IF26 Heat Auction
The IF26 Heat Auction is the EU’s second auction round under the Innovation Fund. It supports industry in moving away from burning fuels to produce heat. Support is paid as a fixed premium based on CO₂ savings over five years. This year’s budget of EUR 1 billion is split across three categories. Companies bid the premium they need, and the lowest bids win.
