The Federal Government has re-adjusted the funding landscape for energy-efficient buildings, with significant changes to the Federal Funding for Efficient Buildings (BEG). These modifications will come into effect for new applications to KfW (Kreditanstalt für Wiederaufbau) on 21 July 2026. Applications approved before this date, as well as those for which owners possess confirmation and submit it by 20 July 2026, will remain valid under the previous funding conditions.
The modernisation of heating systems will continue to receive state support. All heating systems previously eligible for funding will remain included. The basic funding of 30 per cent for existing buildings will be retained.
One of the key points concerns the income bonus, which is being newly tiered for owner-occupiers. Households with a taxable annual income of up to EUR 30,000 will now receive a bonus of 40 per cent, representing an increase from the previous 30 per cent. For incomes up to EUR 40,000, the 30 per cent bonus remains. For the first time, a 10 per cent bonus is also being introduced for incomes up to EUR 50,000.
A new feature is the consideration of families: if at least one minor child lives in the household, the income relevant for funding will be reduced once by EUR 10,000, potentially allowing classification into a higher funding bracket. Furthermore, households with a taxable income between EUR 50,001 and EUR 60,000 will also receive a 10 per cent bonus.
The climate speed bonus, which was available to owner-occupiers for replacing oil, coal, gas-fired floor or night storage heaters, will see a reduction. From 21 July, it will decrease from 20 to 16 per cent. A gradual reduction is planned until its complete discontinuation on 1 August 2028.
The upper limits for the total funding rate and the eligible investment costs are also being adjusted. Households with an income up to EUR 30,000 or up to EUR 40,000 with a child can receive a maximum of 80 per cent funding. All other eligible applicants will be supported with up to 70 per cent of the funding. The upper limit of eligible investment costs for the first residential unit will be reduced from EUR 30,000 to EUR 28,000 from 1 February 2027. This upper limit will then be cut by EUR 750 semi-annually until it reaches EUR 25,000 on 1 August 2028. The heat pump efficiency bonus of 5 per cent and the emissions reduction surcharge of EUR 2,500 for biomass heating systems will be entirely abolished.
Additional changes are anticipated for 2027. This includes the introduction of a value creation bonus for heat pumps in the first quarter of 2027. This bonus is intended to be 15 per cent for heat pumps manufactured in Europe. Concurrently, a reduction of the basic funding for heat pumps from non-EU production to 15 per cent is planned.
