In 2018, Denmark’s Energy Agreement set a goal to phase out fossil fuel heating systems, including oil and gas-based solutions, by 2030 as part of the country’s broader climate objectives. Approximately 400,000 Danish homes were still relying on fossil fuel-based heating, creating a substantial barrier to Denmark’s climate goals. To achieve the transition to electricity-powered heat pumps, the Danish Energy Agency needed to establish a grant system that could incentivize the widespread adoption of green heating technology.

However, several operational challenges quickly arose that needed to be addressed:
The Danish Energy Agency faced an enormous volume of applications. Thousands of citizens were expected to apply for subsidies within a short period, particularly when the program was launched, placing a huge demand for administrative resources. Additionally, traditional manual processing methods were ill-equipped to handle such a large influx of applications. Manual case handling led to delays and administrative bottlenecks, causing frustration and uncertainty among applicants. This posed a serious risk to the overall efficiency and reputation of the program.

Public trust and transparency were also crucial issues. Citizens needed to be confident that their applications were being handled promptly and fairly. Slow responses and unclear timelines for processing could undermine public confidence in the scheme, potentially deterring people from applying or trusting the system. At the same time, the program operated on a first-come, first-served basis, which meant that managing the available funds effectively was vital. The Danish Energy Agency needed to ensure that strict budget control was in place, preventing overspending and ensuring that the funds were allocated appropriately.

To address these challenges, the Agency required a robust, scalable, and efficient digital solution that could manage high application volumes, improve administrative efficiency, maintain transparency, and provide real-time budget control.

cBrain partnered with the Danish Energy Agency to develop and implement a digital solution for the heat pump subsidy program. Delivered in just 12 weeks, this fully automated grant management platform addressed all the operational challenges identified.

The core of the solution was automation. Eligibility validation for applications was fully automated, with the system instantly cross-referencing national registries such as the Central Register of Buildings and Dwellings (BBR) and the Central Heating Planning Database. This ensured that only eligible homes received subsidies, while applications for properties already connected to district heating systems were automatically declined.

Additionally, the system was designed to support the program’s first-come, first-served nature by implementing real-time budget control. The system continuously tracked the total value of approved grants, and as soon as the budget limit was reached, the application process automatically closed. This ensured that there was no overspending and helped maintain the integrity of the program’s financial oversight.

One of the most impactful features of the solution was its straight-through processing capability. Eligible applications were processed instantly, with the system verifying home ownership, detecting duplicate applications, and generating approvals without the need for manual intervention. This led to a drastic reduction in the administrative burden. Furthermore, applicants were notified of their award within 24 hours, which drastically improved the applicant’s experience by providing fast and transparent updates on their application status.

Where manual review was necessary, the system incorporated a four-eyes principle for governance and oversight. This ensured that decisions requiring human intervention still adhered to strict compliance standards while maintaining the overall speed and efficiency of the process.

The platform also offered end-to-end grant management. From the moment an application was submitted, all the way through to post-installation payments, the system managed the entire lifecycle. Once the installation was complete, applicants had up to two years to submit the necessary documentation, at which point the system would automatically trigger payment workflows, further reducing the need for manual processing.

The implementation of the digital solution had immediate and measurable impacts on the heat pump subsidy program. Within the first few months, the system demonstrated remarkable efficiency and effectiveness in achieving the Agency’s goals.

One of the most significant outcomes was the automation of over 74% of applications. These were approved within minutes, eliminating the need for time-consuming manual processing. As a result, administrative workloads were drastically reduced, freeing up resources for other essential tasks. In addition, citizens received their award notifications within 24 hours, which greatly enhanced their overall experience and trust in the program. The speed of the process also ensured that applicants did not have to wait for extended periods, contributing to higher satisfaction rates.

The system’s real-time budget control feature allowed continuous tracking of committed funds, ensuring that the program stayed within budget limits. Once the funds were exhausted, the application process was automatically closed, ensuring financial oversight and preventing any risk of overspending. This feature helped maintain public confidence that the program would be fair and efficient, as well as aligned with Denmark’s financial constraints.

The fully automated, digital solution allowed end-to-end processing of all subsidy applications, from initial application through to post-installation payment, providing applicants with a streamlined experience and reducing administrative friction at every step. The program also benefitted from a highly scalable model, making it easier to apply the same digital solution to future subsidy programs, supporting Denmark’s long-term climate and energy goals.

Ultimately, the success of the project was demonstrated not just by the speed and efficiency of the system but by its ability to deliver real value in line with Denmark’s ambitious climate objectives. By accelerating the transition from fossil fuel heating to green heat pumps, the program contributed significantly to reducing CO₂ emissions, advancing Denmark’s climate goals, and ensuring compliance with the energy and subsidy regulations.