Governmental grants & financing for efficient buildings

BENEFIT FROM UP TO 40% 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.


Federal funding for efficient buildings (BEG)

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.

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)).


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

1. BEG EM (individual measures) - only renovation

Valid from 15 August 2022

Grant funding:

For the use of a heat pump, the operator receives 25 % of the investment costs in the modernisation (e.g. replacement of gas or oil heating or even an old heat pump with a new heat pump). In addition, there is a "heating exchange bonus" of 10 % for oil heating (age does not matter) and gas heating (in operation for more than 20 years) and a "heat pump bonus" of 5 % for ground source heat pumps.

In the following table you will find the possible subsidy rates:

Old heat generatorNew heat pumpSubsidy rate
Gas heating, in operation for at least 20 yearsair/water heat pump35 %
Gas heating, in operation for less than 20 yearsair/water heat pump25 %
Gas heating, in operation for at least 20 yearsground source heat pump40 %
Gas heating, in operation for less than 20 yearsground source heat pump30 %
Oil heating, age does not matterair/water heat pump35 %
Oil heating, age does not matterground source heat pump40 %

What is meant by investment costs??
Eligible investment costs are the acquisition costs of the subsidised heat pump system, i.e.:

  • the heat pump as heat generator
  • the costs for installing and commissioning the heat pump
  • the heat source (e.g. the ground probe or the ground collector)
  • MSR technology and energy management systems (e.g. smart home systems)
  • Heat storage tanks (hot water storage tanks, heating buffer storage tanks and combi storage tanks
  • Environmental measures:
    • Furnishing or redesigning the heating/technology room.
    • Heat distribution and heat transfer in existing buildings (e.g. acquisition costs of panel heating systems or high-efficiency circulation pumps)

A maximum of 60,000 euros per residential unit can be counted as eligible costs.

The grants under the BEG EM must be applied for online at BAFA.

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

KfW loan with repayment grants:

With the new BEG efficiency house funding, the KfW efficiency houses will be replaced both in the new building and in the renovation. 

In principle, the new funding guidelines for new buildings only provide for the efficiency house level EFH-40 NH (building with sustainability certificate).

As before, there are no special technical requirements for the heat pump; for the calculation and certification of the efficiency house standard, the corresponding TMA of the efficiency house guidelines must be taken into account.

Table for residential buildings - new construction:

Efficiency house
Standard
Repayment subsidy in %
per housing unit

40 NH

5 % of max.
120.000 € /au

Table for residential buildings - renovation:

Efficiency house
Standard
Repayment subsidy in %
per housing unit
monument5 % of max.
120.000 € /au
monument EE
and/or NH
10 % of max.
150.000 € /au
855 % of max.
120.000 € /au
85 EE
and/or NH
10 % of max.
150.000 € /au
7010 % of max.
120.000 € /au
70 EE
and/or NH
15 % of max.
150.000 € /au

55

15 % of max.
120.000 € /au
55 EE
and/or NH
20 % of max.
150.000 € /au

40

20 % of max.
120.000 € /au
40 EE
and/or NH
25 % 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

KfW loan with repayment grants:

With the new BEG efficiency house funding, the KfW efficiency houses will be replaced both in the new building and in the renovation. 

In principle, the new funding guidelines for new buildings only provide for the efficiency house level EFH-40 NH (building with sustainability certificate).

As before, there are no special technical requirements for the heat pump; for the calculation and certification of the efficiency house standard, the corresponding TMA of the efficiency house guidelines must be taken into account.

Table for non-residential buildings - New construction:

Efficiency house
Standard
Repayment subsidy in %
per housing unit

40 NH

5 % of max. € 10 million
or
€ 2 000 per m² floor space

Table for non-residential buildings - renovation:

Efficiency house
Standard
Repayment subsidy in %
per housing unit
monument5 % of max. € 10 million
or
€ 2 000 per m² floor space
monument EE
and/or NH
10 % of max. € 10 million
or
€ 2 000 per m² floor space
7010 % of max. € 10 million
or
€ 2 000 per m² floor space
70 EE
and/or NH
15 % of max. € 10 million
or
€ 2 000 per m² floor space

55

15 % of max. € 10 million
or
€ 2 000 per m² floor space
55 EE
and/or NH
20 % of max. € 10 million
or
€ 2 000 per m² floor space

40

20 % of max. € 10 million
or
€ 2 000 per m² floor space
40 EE
and/or NH
25 % of max. € 10 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.


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.)