Governmental grants & financing for efficient buildings

BENEFIT FROM UP TO 50% STATE SUBSIDY

In Germany, anyone who wants to build an energy-efficient building or renovate an old building does not have to do it entirely out of pocket. There are a number of ways to obtain financing and / or subsidies for heating and other measures. At the federal institutions (KfW, BAFA) you can get low-interest loans and grants for your new building or your heating modernization. In some federal states there are also interesting regional funding programs. In addition, financing offers from the house banks and other financing partners may also be of interest in some cases.

NOTE: MINOR ADJUSTMENTS AND DETAILS ARE STILL BEING MADE TO THE FUNDING PROGRAMMES. PLEASE INFORM YOURSELF UP TO DATE.


Federal funding for efficient buildings (BEG)

NEW FROM 01.01.2021 - Gradual introduction

The federal funding for efficient buildings is intended to provide even stronger incentives for investments in energy efficiency and renewable energies and thus make a decisive contribution to achieving the 2030 climate targets in the building sector. At the same time, the energetic building subsidy is being completely reorganized and further developed with the BEG.
For the first time, funding for energy efficiency and renewable energies will be brought together under one roof with federal funding for efficient buildings. In the case of new buildings and complete renovations, the use of renewable energies will be promoted even more in the future.

Funding is offered as both grant and loan funding in order to best meet the respective needs. At the same time, the federal funding for efficient buildings reduces the complexity of the funding landscape and thus the bureaucratic effort.

With the federal funding for efficient buildings, a single funding program replaces four existing funding programs (CO2 building renovation program, implemented by KfW with the funding programs "Energy Efficient Building and Renovation" (EBS), the market incentive program (MAP), implemented by BAFA "Heating with renewable energies “, The Energy Efficiency Incentive Program (APEE) and the Heating Optimization Program (HZO)).

In the future, an application will be sufficient to be able to take advantage of all funding offers. These are submitted either to the German Bundesamt für Wirtschaft und Ausfuhrkontrolle or to the KfW.


Federal funding for efficient buildings is divided into the following three sections:

1. BEG EM (individual measures) - only building stock / renovation

From 01.01.2021 - grant funding: 

The Market Incentive Program (MAP) will expire on 31.12.2020 and will be replaced by the BEG individual measures from 01.01.2021. However, these only apply to existing buildings. From now on, only efficiency house promotion via KfW will be possible for new buildings; promotion of individual measures will be discontinued. 

The well-known subsidy, rates from the market incentive program are continued here. For the use of a heat pump in modernization, 35 percent of the investment costs are incurred (for example a replacement of gas heating or an old heat pump with a new heat pump). When you exchange an old oil heater for a heat pump, you even get 45 percent of the investment costs back.

What are the investment costs? 

Eligible investment costs are the acquisition costs of the supported heat pump system:

  • the heat pump as a heat generator
  • the cost of installing and commissioning the heat pump
  • the heat source (for example the earth probe or the earth collector)
  • Technology and energy management systems (for example smart home systems)
  • Heat storage (hot water storage, heating buffer and combined storage)
  • Environment measures:
    • Furnishing or redesign of the heating/technology room
    • Heat distribution and heat transfer in the building stock (for example acquisition costs of surface heating systems or highly efficient circulation pumps)

NEW: a maximum of 60,000 euros can be counted as eligible costs per unit.

Up to 50% support with iSFP (individual refurbishment timetable):

If an iSFP has already been drawn up which includes the energy rehabilitation measure for which funding is requestedthe rate of funding for that measure will be increased by an additional 5%.

If an iSEP has already been drawn up which includes the energy rehabilitation measure for which funding is requested, the rate of funding for that measure will be increased by an additional 5 %. However, the measure must be implemented within a maximum period of 15 years after the iSFP has been drawn up.

Grants under the BEG EM can be applied online by BAFA from 02.01.2021.

Requirements for heat pumps

The annual COP previously relevant for funding is replaced by the seasonal space heating efficiency = ƞs (ETAs).

Eligible heat pumps must reach at least the following values under average climatic conditions:

Air/water
heat pump
135 % at
35 °C

120 % at
55 °C

Brine/water
heat pump
150 % at
35 °C
135 % at
55 °C
Water/water
heat pump
150 % at
35 °C
135 % at
55 °C

From 01.01.2021, all eligible heat generators must record all energy consumption as well as the amount of heat generated. In addition, heat pumps must have interfaces that enable them to be activated and operated automatically. This can be proven by the label "SG-ready". A certification according to one of the established European series regulations (EHPA, Keymark, EUROVENT) or individual tests according to EN 14511 / EN 14825 by an ISO 17025 accredited testing institute must be available. For earth probe drilling, the following applies unchanged: submission of a DVW´GW W 120-2 certificate as well as proof of no-fault insurance. 


2. BEG WG (residential buildings) - New construction and building stock / Renovation

Until 01.07.2021 - KfW loan with repayment grants:

Applications for full renovations and efficient new construction of residential and non-residential buildings can still be submitted to KfW as usual for the corresponding programs "Energeieffizient Bauen und Sanieren"(energy efficient building and renovation.

From 01.07.2021 - KfW loan with repayment grants or share promotion:

With the new BEG efficiency house funding, the KfW efficiency houses will be replaced both in the new building and in the renovation. In the future, there will be a choice between low-interest loan incl. repayment grant as well as a new share subsidy. In both variants, a project receives the same amount of funding.

In principle, the new funding guidelines continue to provide for the classic efficiency house stages. The new building will continue to include EFH-55, EFH-40 and EFH-40plus. In addition, two further differentiation are introduced, which can be combined with the efficiency house levels:

  • A new EE class when at least 55% of the heating/cooling needs are covered by renewable energies.
  • In addition, an NH classification if the building is issued a sustainability certificate.

If one of these two new conditions is met, support will be more lucrative in terms of eligible costs and rates. As before, there are no special technical requirements for the heat pump. For the calculation and certification of an efficiency house standard, the relevant directives shall be taken into account. 

Table for residential buildings - new construction:

Efficiency house
Standard
from 01.07.2021
(BEG)
5515 %
of max.
120.000 € /au
55 EE
and/or NH
17,5 %
of max.
150.000 € /au

40

20 %
of max.
120.000 € /au

40 EE
and/or NH

22,5 %
of max.
150.000 € /au
40plus25 %
of max.
150.000 € /au

Table for residential buildings - renovation:

Efficiency house
Standard
from 01.07.2021
(BEG)
monument25 %
of max.
120.000 € /au
monument EE
and/or NH
30 %
of max.
150.000 € /au

100

27,5 %
of max.
120.000 € /au

100 EE
and/or NH

32,5 %
of max.
150.000 € /au
8530 %
of max.
120.000 € /au
85 EE
and/or NH
35 %
of max.
150.000 € /au
7035 %
of max.
120.000 € /au
70 EE
and/or NH
40 %
of max.
150.000 € /au

55

40 %
of max.
120.000 € /au
55 EE
and/or NH
45 %
of max.
150.000 € /au

40

45 %
of max.
120.000 € /au
40 EE
and/or NH
50 %
of max.
150.000 € /au

According to the BEG, the funding share from 1 July 2021 will be 50% for the costs of energy planning and construction supervision as well as sustainability certification. Maximum eligible costs: the percentage refers to maximum eligible costs from construction or acquisition; transaction and land costs are excluded.


3. BEG NWG (non-residential building) - New construction and building stock / renovation

Until 01.07.2021 - KfW loan with repayment grants:

Applications for full renovations and efficient new construction of residential and non-residential buildings can still be submitted to KfW as usual for the corresponding programs "Energeieffizient Bauen und Sanieren" (energy efficient building and renovation).

From 01.07.2021 - KfW loan with repayment grants or share promotion:

With the new BEG efficiency house funding, the KfW efficiency houses will be replaced both in the new building and in the renovation. In the future, there will be a choice between low-interest loan incl. repayment grant as well as a new share subsidy. In both variants, a project receives the same amount of funding.

In principle, the new funding guidelines continue to provide for the classic efficiency house stages. The new building will continue to include EFH-55, EFH-40 and EFH-40plus. In addition, two further differentiation are introduced, which can be combined with the efficiency house levels:

  • A new EE class when at least 55% of the heating/cooling needs are covered by renewable energies.
  • In addition, an NH classification if the building is issued a sustainability certificate.

If one of these two new conditions is met, support will be more lucrative in terms of eligible costs and rates. As before, there are no special technical requirements for the heat pump. For the calculation and certification of an efficiency house standard, the relevant directives shall be taken into account. 

Table for non-residential buildings - New construction:

Efficiency house
Standard
from 01.07.2021
(BEG)
5515 %
of max. € 30 million
or
€ 2 000 per m² floor space
55 EE
and/or NH
17,5 %
of max. € 30 million
or
€ 2 000 per m² floor space

40

20 %
of max. € 30 million
or
€ 2 000 per m² floor space

40 EE
and/or NH

22,5 %
of max. € 30 million
or
€ 2 000 per m² floor space

Table for non-residential buildings - renovation:

Efficiency house
Standard
from 01.07.2021
(BEG)
monument25 %
of max. € 30 million
or
€ 2 000 per m² floor space
monument EE
and/or NH
30 %
of max. € 30 million
or
€ 2 000 per m² floor space

100

27,5 %
of max. € 30 million
or
€ 2 000 per m² floor space

100 EE
and/or NH

32,5 %
of max. € 30 million
or
€ 2 000 per m² floor space
85-
85 EE
and/or NH
-
7035 %
of max. € 30 million
or
€ 2 000 per m² floor space
70 EE
and/or NH
40 %
of max. € 30 million
or
€ 2 000 per m² floor space

55

40 %
of max. € 30 million
or
€ 2 000 per m² floor space
55 EE
and/or NH
45 %
of max. € 30 million
or
€ 2 000 per m² floor space

40

45 %
of max. € 30 million
or
€ 2 000 per m² floor space
40 EE
and/or NH
50 %
of max. € 30 million
or
€ 2 000 per m² floor space

According to the BEG, the funding share from 1 July 2021 will be 50% for the costs of energy planning and construction supervision as well as sustainability certification. Maximum eligible costs: the percentage refers to maximum eligible costs from construction or acquisition; transaction and land costs are excluded.


When should you choose a loan with a repayment grant and when should you choose a direct grant?

  • A loan with a repayment grant is recommended if you need financing for your construction project.
  • The grant, on the other hand, is recommended if you have enough equity and do not need financing.

Regional programs

Federal funding for efficient buildings is available throughout Germany. In addition, there are a number of regional programs, which vary from state to state and which can be partly combined with the federal heat pump support programs. So it can be very rewarding to take these funding opportunities into account when planning. 


House banks and financing partners

It is not only public credit institutions such as KfW and state banks that provide offers to finance housing in the programme. Other banks are also dealing with the issue of construction finance. So it may be worthwhile to look for a financing partner in addition to KfW. The disadvantage of this option: You have to forego the payment subsidy. Therefore, compare exactly which variant is the best in your case. 


Contact

The alpha innotec Förderservice (funding service) offers the all-round carefree package in terms of heating conveying and guarantees the highest funding amounts for your heat pumps with minimal effort.

To the alpha Förderservice

 



(alpha innotec - ait deutschland GmbH assusmes no liability for the topicality, accuracy and completeness of the information provided. Exclusion of liability against the author are generally excluded, provided that there is no demonstrable or grossly negligent fault on the part of the author. All contents are non-binding.)