The strongest aspect of switching to high-efficiency motors is energy savings; but there is a second lever that significantly accelerates the payback of this investment: state incentives and support. Thanks to the Efficiency Increasing Project (VAP), KOSGEB support and energy efficiency incentives, the upfront investment burden of switching to an IE3 or IE4 motor decreases and the amortization period shortens markedly. This guide explains, from a buyer's point of view, which support mechanisms may come into play when switching to high-efficiency motors, how they speed up payback, and how this process integrates with the right motor supply. The aim is not to give tax advice but to clearly show which supports you should research when planning your efficient motor investment. As HEM Motor, we supply IE3 and IE4 high-efficiency motors from stock and provide the technical motor data and documentation you will need in your efficiency projects.

State incentives and KOSGEB support when switching to high-efficiency motors

What Is the Efficiency Increasing Project (VAP)?

The Efficiency Increasing Project (VAP) is a mechanism designed to support industrial facilities' investments aimed at reducing energy consumption. Replacing old, low-efficiency (IE1/IE2) motors with IE3 or IE4 high-efficiency motors is a classic efficiency-increasing measure, and such projects can usually be evaluated within the scope of VAP. The basic logic of VAP is that a certain proportion of an investment delivering measurable energy savings is supported; this lowers the net cost of the motor replacement investment.

Identifying the efficiency class of a motor fleet and prioritising which motors should be replaced form the basis of a VAP application. Our article on preparing for an energy efficiency audit: facility motor inventory and efficiency class determination helps you build your facility's motor inventory step by step. Our article on which facility should switch to IE4 super premium motors first? guides which motor to switch first.

KOSGEB Support and Energy Efficiency Incentives

KOSGEB supports the machinery-equipment renewal and efficiency investments of small and medium-sized enterprises (SMEs) through various support programmes. Switching to high-efficiency motors is a typical modernisation investment for SMEs and can be evaluated within suitable programmes. In addition, various incentive and grant mechanisms in the field of energy efficiency can cover part of efficiency investments.

The scope, rates and application conditions of these support programmes are updated from time to time; therefore, for current and official information, we recommend always relying on the official channels of the relevant institution (KOSGEB and the Ministry of Energy and Natural Resources / relevant directorates) and a licensed financial advisor. Our contribution is to provide the motor technical data and efficiency documents required in these applications.

Accelerated amortization with KOSGEB support and energy efficiency incentives

Payback and Amortization Accelerated by Support

The basic financial logic of switching to high-efficiency motors is that the energy a motor consumes over its lifetime far exceeds its initial purchase price. An IE3 or IE4 motor delivers significant annual energy savings compared to an old IE1/IE2 motor; these savings pay back the cost difference within a certain period. This is where incentives and support enter the equation as follows:

  • The upfront investment burden decreases: When support covers part of the investment, the net amount to be paid back drops.
  • The amortization period shortens: Because the net cost is lower, the same annual savings cover the investment in a shorter time.
  • It scales across the fleet: Savings that are meaningful on a single motor become a much larger item when spread across the whole fleet.

We covered the real consumption calculation and payback period of replacing an old motor with IE4 in our article on what does replacing your old motor with IE4 gain you?, and how payback shortens with incentives in detail in our article on replacing an old standard motor with IE4: payback period and incentives. To calculate the total cost of ownership (TCO) correctly, our article on how to calculate total cost of ownership (TCO) for high-efficiency motors is a key resource.

Application Process and Correct Motor Supply

Incentive and support applications generally follow these steps: documenting the current situation (motor inventory, efficiency classes, consumption), calculating the savings to be achieved, determining the suitable support programme, and submitting the application. For this process to proceed smoothly, the efficiency class certificates, technical nameplate values and conformity documents of the motors you will supply are critical. We collected methods for measuring and documenting annual savings in our article on measuring and documenting annual energy savings in high-efficiency motors.

To scale savings from a single motor to the fleet, see our article on scalable savings when switching to high-efficiency motors. You can review our high-efficiency motor product family on the high-efficiency electric motors, IE4 electric motor and IE3 electric motor pages, reach all our efficiency content via our high-efficiency motors category, and the whole product range via the HEM Motor homepage.

Which Motors Should Be Prioritised? The Transition Plan

To gain the highest benefit from incentives and support, you should replace not your entire motor fleet at once but the motors that will gain the most, by prioritising them. The main factors that determine a motor''s replacement priority are:

  • Operating hours: Motors running 24/7 save much faster than rarely running motors; give priority to these.
  • Power (kW): On high-power motors, the same efficiency difference means a larger absolute saving.
  • Current efficiency class: Old IE1/IE2 motors offer much larger gains than switching from IE3 to IE4.

This prioritisation both strengthens the rationale of your VAP application and lets you use your budget most efficiently. We covered which facility should switch to IE4 first in our article on which facility should switch to IE4 super premium motors first?, and the IE4 threshold in pumps, fans and compressors in our article on the IE4 threshold in pumps, fans and compressors.

Calculating Real Savings Correctly: Nameplate Efficiency or Field Efficiency?

For the savings calculation submitted in an incentive application to be realistic is critical for the application to proceed smoothly. The common mistake here is to look only at nameplate efficiency and ignore how the motor actually works under real load in the field. Real savings are determined by the motor''s actual load ratio, operating hours and electricity tariff. Therefore:

  • Measure the motor''s actual load ratio; most motors run below their nameplate power.
  • Record the annual operating hours correctly; these hours determine the savings.
  • Account for the difference between nameplate efficiency and field efficiency.

We detailed the difference between nameplate and field efficiency and calculating real savings correctly in our article on nameplate versus field efficiency: calculating real savings correctly, and the power factor and reactive penalty relationship in our article on power factor (cos φ) and reactive penalty in high-efficiency motors.

Increasing Savings With a Variable Frequency Drive

Alongside switching to high-efficiency motors, using a variable frequency drive (VFD), especially in pump and fan applications, significantly increases savings. A pump or fan running under variable load consumes much less energy when the drive adjusts the speed to demand. This combination increases the total savings delivered in an incentive-covered efficiency project, further accelerating the payback.

We covered how a high-efficiency motor with a variable frequency drive saves in pumps and fans in our article on high-efficiency motor + variable frequency drive: energy savings in pumps and fans, and the carbon footprint reduction aspect in our article on reduce your facility''s carbon footprint with high-efficiency motors. You can find the importance of efficiency in the context of the carbon border (CBAM) for exporting facilities in our article on the carbon border (CBAM) and exporting facilities with high-efficiency motors.

Building a Motor Inventory: The First Step of the Application

The basis of every incentive and support application is a solid motor inventory. An inventory containing the power, speed, efficiency class, operating hours and application information of the motors in your facility lets you both prioritise which motors to replace and calculate the savings to be achieved. Follow these steps when building an inventory:

  • Record each motor''s nameplate data (kW, speed, efficiency class, year of manufacture).
  • Note the machine the motor is connected to and its annual operating hours.
  • Mark old, low-efficiency (IE1/IE2) motors and give them replacement priority.

This inventory is also the basis of preparing for an energy efficiency audit. We covered the facility motor inventory and efficiency class determination step by step in our article on preparing for an energy efficiency audit: facility motor inventory and efficiency class determination, and motor fleet management in three-shift facilities in our article on motor fleet management in three-shift facilities.

Payback Calculation: A Simple Framework

You can roughly evaluate the payback period of an incentive-backed motor renewal project with this framework: first calculate the annual energy savings (kWh) between the old motor and the new high-efficiency motor; multiply this by the electricity unit price to find the annual monetary savings; then divide the net cost of the investment (with the incentive deducted) by these annual savings. The result is roughly the payback period. Because the incentive lowers the net cost, it noticeably shortens this period.

We covered how to do this calculation with real consumption data in our article on what does replacing your old motor with IE4 gain you?, and the method of measuring and documenting savings annually in our article on measuring and documenting annual energy savings in high-efficiency motors. Our article on high-efficiency motor: efficiency class and correct sizing also explains the effect of correct sizing on savings.

The Importance of Working With the Right Motor Supplier

The technical side of the incentive and support process relies on the efficiency documents and correct technical data of the motors you supply. Applications made with motors whose efficiency class documents are missing or inconsistent may run into problems. Therefore, in the application process, working with a supplier that can fully document the motors'' IE3/IE4 efficiency class and technical nameplate values is highly important. We ease the technical side of the application by sharing the efficiency and technical documents of the motors we supply.

We covered how to scale savings from a single motor to the fleet when switching to high-efficiency motors in our article on scalable savings when switching to high-efficiency motors: from a single motor to the fleet, and the investment decision between IE3 and IE4 in our article on IE3 or IE4? the right electric motor investment for your business.

Frequently Asked Questions

Can I benefit from incentives if I replace my old motors with IE4?

Replacing low-efficiency motors with high-efficiency (IE3/IE4) motors is a classic energy efficiency measure and can be evaluated within the scope of the Efficiency Increasing Project (VAP), KOSGEB programmes and energy efficiency incentives. However, the scope, rate and conditions of programmes are updated from time to time; therefore, for current eligibility, you should rely on the official channels of KOSGEB and the relevant ministry and a licensed financial advisor. We provide the motor efficiency certificates and technical data required in the application.

How much does an incentive shorten the payback period?

Because an incentive lowers the net cost of the investment, the same annual energy savings pay back the investment in a shorter time. That is, the amortization period calculated without support shortens by the support rate. The exact effect varies by the motor's power, operating hours, electricity tariff and the support rate provided. You can share your motor inventory and operating hours with us for a facility-specific payback estimate.

Which documents about the motors are required for the application?

Typically the motors' efficiency class (IE3/IE4) certificates, technical nameplate values (kW, speed, efficiency, cosφ) and conformity documents are requested; in addition, a project document calculating the savings between the current and new situation is required. By sharing the efficiency and technical documents of the motors we supply, we ease the technical side of this process. For the official application format, rely on the relevant institution's current guide.

Get a Quote

Are you switching to IE3 or IE4 high-efficiency motors for your efficiency project? Send us the power, speed and current efficiency class of the motors you want to replace, and we will quickly quote the suitable high-efficiency motors along with stock availability and technical efficiency documents. Call now: +90 (532) 345 49 86 or reach us via our contact page. We offer bulk pricing and documentation support for fleet-based motor renewal projects.