Subsidies for your own home: How to find the right subsidy program

Another funding database is offered by the Federal Ministry for Economic Affairs and Climate Action. The database contains only funding programmes from the federal government and partly from the federal states. In addition, however, there are other local subsidies from municipalities, districts or energy suppliers in many places. Find out more locally, for example at the town hall or at our advice.

Apply for funding online

The application process varies depending on the funding programme. You can obtain nationwide funding online from KfW and BAFA. Please note: The responsibilities between the two development institutions have changed in some cases at the beginning of 2024.

• It is best to seek advice before planning. The consumer advice centre offers energy advice and advice on real estate financing.
• Applications must be submitted before the start of the measures. There are exceptions for heating subsidies.
• In the case of measures on the building envelope, such as insulation measures and window replacement, it is necessary to involve energy efficiency experts as part of federal funding.
• There is no legal entitlement to funding. If, for example, the budget of a program is exhausted, no more funds can be paid out. We have currently marked these cases with the note "stopped".

Federal Funding for Efficient Buildings (BEG)

In the case of the federal government's funding programmes, which are handled by KfW and BAFA, there have been changes in the minimum technical requirements, the framework conditions and the responsibilities.

The BEG EM (EM = individual measures) was largely adjusted as of 1 January 2024. You can apply for subsidies online from KfW or BAFA. Specialist companies that you commission for applications for subsidies for heat generation must have registered once online with the German Energy Agency (dena).

KfW

There are different ways to receive funding from KfW, there are low-interest loans, loans with an additional repayment subsidy and pure grant funding.

KfW awards grants for various individual measures. If you receive a grant (also from BAFA) and have further financing needs, you can use a supplementary loan from KfW, which is applied for through a financing partner (e.g. house bank).

• Subsidy: KfW product 458 Heating subsidies for private individuals – residential buildings
• Supplementary loan: KfW product 358/359 Individual measures Supplementary loan – residential building

Further bonuses can be applied for, especially for heating subsidies.

If you are undertaking a complete renovation into an efficiency house (EH), you can apply for a "loan" or "loan with repayment subsidy" from KfW. This must be handled by a financing partner (e.g. house bank).

The replacement of the heating system (but not the optimisation of the heating system) is subsidised by the KfW.

Since 1 February 2024, you can register with KfW in the "My KfW" customer portal. Since 27 February 2024, private individuals who are owners of existing and owner-occupied single-family homes in Germany have been able to apply for the new heating subsidy.

Since 28 May 2024, private individuals who are owners of existing apartment buildings (with more than one residential unit) as well as condominium associations (WEG) have been eligible to apply, provided that measures are implemented on the common property.

Attention: There is a transitional regulation for heating subsidies: The funding application can be submitted until 30 November 2024, exceptionally even after the heating system has been replaced, until 31 August 2024.

Subsidies in a nutshell – information sheets

The most important information on many loans and grants can be found here as information sheets for download.

Through KfW, the German government is promoting measures for energy-efficient refurbishment, age-appropriate conversion and burglary protection of buildings. Fuel cells and photovoltaic systems are also funded. Here you will find helpful links from KfW to the individual products.

BEG climate-friendly new construction (BEG - KFN) (PDF)

Houses and apartments are considered climate-friendly if

• comply with certain limits for greenhouse gas emissions throughout the life cycle,
• achieve the KfW Efficiency House Standards 40 and
• whose heat is generated exclusively on the basis of renewable energies.

The new programme for climate-friendly new buildings currently contains three products for residential buildings:

• KfW product 297 Loan for private owner-occupiers of residential buildings,
• KfW product 298 Loan for residential buildingsand
• KfW Product 300 Home ownership for families.

A distinction is also made according to whether it is a climate-friendly residential building (KFWG) or a climate-friendly residential building with QNG (KFWG-Q), i.e. a specific quality seal for sustainability. For the former (KFWG), a loan with interest subsidy of max. €120,000 per residential unit can be applied for. For buildings with a quality seal (KFWG-Q), up to €150,000 per residential unit can be approved.

• BEG Efficiency House (BEG WG)(PDF)
• KfW Product 261 Loan with repayment subsidy

In the case of subsidies for residential buildings (WG), there is a worst-performing-building bonus (WPB bonus) of 10 percent. This bonus is available for buildings that are largely unrenovated, i.e. are classified in efficiency class H in the energy certificate, were built before 1957 and whose outer walls are 75 percent unrenovated.

In addition, there are various bonuses that can increase the repayment subsidy: These are

- Efficiency house (EH) and renewable energy (RE) class bonus: + 5 percent

- EH and sustainability (NH) class bonus: + 5 percent

EE and NH classes cannot be cumulated together. This applies to all eligible EH classes.

- Serial Renovations (SerSan) Bonus: +15 percent

- Worst performing building (WPB) bonus: +10 percent

SerSan and WPB bonuses can be cumulated, but are then limited to +20 percent.

• Age-appropriate conversion (PDF)
• KfW product 159 Credit
• 455-B Allowance
• Renewable Energy Photovoltaic Systems (PDF)
• KfW Product 270 Credit

Federal Office of Economics and Export Control (BAFA)

You can also apply for subsidies for individual renovation measures from BAFA. Since January 2024, subsidies have been available for the building envelope, plant technology (except heating), construction, conversion and expansion of a building network, heating optimisation as well as for specialist planning and construction supervision.

In order to be able to apply, you must create a BAFA user account. This works on the BAFA portal via the button "+ New application".

For heating optimisation and building networks, the BEG has provided since January 2024 that the funding application will only be submitted after the conclusion of a supply and service contract. This supply and service contract must contain an exit clause so that you are covered in the event that the subsidy is not approved. Planning services may be provided before the application is submitted.

• BEG Individual Measures (PDF)
  Subsidy
• Energy Consulting for Residential Buildings / Individual Renovation Roadmap (PDF)
  BAFA Grant

You can receive subsidies for material costs from both the BEG for residential buildings (WG) and individual measures (EM) if you carry out the measures yourself. However, only the material costs directly associated with the energy-efficient renovation measure are subsidized if energy efficiency experts or specialist companies confirm the professional implementation and correct material costs with the proof of use.

In the case of BEG Individual Measures, there is funding for specialist planning and construction supervision, e.g. by energy efficiency experts or experts, of 50 percent of the eligible costs. The maximum funding rates are now at:

• €5,000 for detached and semi-detached houses,
• €2,000 per residential unit for apartment buildings (from three or more residential units),
• 20,000 € per grant notice.

Is there a tax incentive for renovations?

Alternatively, you can also claim energy-efficient renovation measures for tax purposes. This allows you to receive a tax reduction in the form of a tax bonus. Measures on owner-occupied residential property are funded if the building is at least 10 years old.

Only renovation measures that are carried out by a specialist company and that meet the requirements of the Energy-Efficient Renovation Measures Ordinance (ESanMV)are taken into account for tax purposes. The measures must exceed the minimum technical requirements of the Building Energy Act (GEG) - as is the case with the KfW and BAFA funding programmes.

If all this applies, you can declare 20 percent and a maximum of 40,000 euros within three years in your tax return. You do not need to submit an application to the tax office before the start of the renovation measure.

Further information on tax incentives can be found on the website of the Federal Ministry for Economic Affairs and Energy:

1. Fact sheet
2. The official model for the certificate of remediation measures
3. Income Tax Act (EStG) § 35c

If you already know whether a tax credit for your renovation measures or a funding programme is an option: You can find the most important information on tax incentives as well as on many loans and grants here as information sheets for download.

Tax credit

Tax incentives for energy-efficient renovation measures(PDF)