The municipal Climate-Neutral Buildings subsidy programme (FKG 22) provided key momentum for the energy-efficiency refurbishment of existing properties and the shift towards a climate-friendly heating supply in Munich in 2026 as well. However, the strained budgetary situation in the Bavarian state capital is forcing the administration to make a strategic course correction. To secure the funding system on a robust financial basis over the long term, a realignment of content and a sharper focus in the allocation of funds are required.
For this reason, the programme is being revised both technically and in terms of content. A key element of the reform is the introduction of a newly structured annual application budget intended to establish dependable financial caps. The resumption of municipal funding is slated for January 2027. Under the designation FKG 27, a newly designed digital application portal is to be made available to owners and investors at that time.
Temporary application freeze to prevent front-loading effects
To rule out budget overruns caused by front-loading effects and additional financial commitments ahead of the modified subsidy terms, a temporary suspension of applications was decided upon. The official moratorium came into force with the corresponding resolution on 10 November 2026. Since this cut-off date, the city has ceased accepting new subsidy applications for energy refurbishment measures or heating system conversions for the time being.
- —Grandfathering: Subsidy applications under FKG 22 submitted by 10 November 2026 at the time the resolution was adopted retain their full validity.
- —Programme pause: Since the date of the resolution, no new applications will be accepted until the new guidelines enter into force.
- —Outlook for FKG 27: Allocations are expected to restart from January 2027 within a new budget framework and via a new application portal.
Consequences for property owners and refurbishment planning
For private as well as commercial property owners in Munich, the measure marks a turning point in financing plans for upcoming energy-efficiency upgrades. While applications that have already been submitted remain protected, new projects must be calculated without municipal grants or postponed until the start of 2027. The administration regards the pause as a necessary prerequisite for adapting the policy toolkit to altered budgetary realities.
Owners with existing applications can proceed with their refurbishment and conversion measures unchanged on the basis of previous FKG 22 funding commitments. For all other planners across the city, FKG 27 will form the new guidance framework for municipal funding from 2027.
