Kanagawa SME Energy-Saving Equipment Introduction Subsidy

This subsidy is granted by Kanagawa Prefecture under the Industrial and Commercial Sector Decarbonization Promotion Subsidy Grant Guidelines to SMEs located in Kanagawa that introduce energy-saving equipment to replace existing equipment. It aims to advance decarbonization in the industrial and business sectors by reducing energy-derived CO2 emissions. The application submission deadline is November 30, 2026 (Reiwa 8), and the project completion deadline is March 31, 2027 (Reiwa 9). Eligible applicants are SMEs implementing the project (individual proprietors must file blue tax returns), owning the land or buildings within Kanagawa where the project takes place. Eligible entities include SMEs, school corporations, general/public-interest incorporated associations and foundations, NPOs, medical corporations, social welfare corporations, and SME organizations. Financial soundness requirements such as no bank-transaction suspension in the past two years and no delinquent prefectural taxes must also be satisfied. Eligible equipment includes air-conditioning, LED lighting, boilers, water heating, compressors, transformers, refrigeration, gas cogeneration, energy management systems, and other equipment proposed via an energy-saving diagnosis. Eligible expenses cover design, equipment, and installation costs, excluding consumption taxes. All equipment must be unused, achieve annual CO2 reductions of at least 3 tons, and meet top-runner or equivalent energy-saving standards. The subsidy rate is one-third of eligible expenses, capped at JPY 5,000,000 (or JPY 6,000,000 for certified Kanagawa renewable-energy users or Kanagawa Decarbonization Challengers), whichever is lower. The application requires the grant application form (Form 1), business plan, list of officers, current-state photos, contracts, expense breakdowns, specifications/catalogues/CO2 reduction calculations, drawings, and corporate registration certificates. Registration in the J-Credit scheme is prohibited, and projects must not start before the grant decision; pre-application procedural conditions must therefore be carefully observed.