Building renovation: what will be funded in the future

Old doors, leaky windows, gas heaters: All of these cause high energy costs. In the future, new rules will apply to state subsidies for the renovation of buildings. What do owners have to consider?

The federal government wants to encourage property owners to replace “energy guzzlers” such as old windows or heaters in order to do more for the climate by saving energy. That is why the state pays subsidies for the renovation of the building. However, tight budgets are forcing the federal government to economize; the subsidy rates for the individual measures will therefore be reduced.

What will be funded in the future?

The federal government is promoting individual measures, for example replacing an old gas heating system with a heat pump. There is also financial support for a complete renovation, i.e. extensive conversions. And: Anyone who builds a new, energy-saving house also receives money from the state.

However, in the future the focus will be on the renovation of buildings. Twelve to 13 billion euros are planned for this. Only one to two billion euros flow into the promotion of new buildings. These must be particularly energy-efficient houses.

How high are the grants?

How much money flows depends on the individual renovation projects. In the case of complete refurbishments, for example, the subsidy amount depends on the level of efficiency achieved in houses. The state contributes a maximum of 67,500 euros. However, all funding rates are somewhat lower than before: they are reduced by five to ten percent, depending on the measure. The reason: as many people as possible should be financially supported – despite tight budgets.

So there is a little less for each individual, so that in the end more can benefit from the building subsidies, explains the Federal Ministry of Economics. An example: replacing old windows. The subsidy rate used to be up to 25 percent of the costs, the maximum subsidy amount: around 15,000 euros. According to the new regulation, the subsidy rate is only up to 20 percent or a maximum of 12,000 euros.

When does the new funding program start?

The new building subsidy starts today – with a first part, namely the new subsidy conditions for complete renovation. Applications can be submitted to the state development bank KfW.

For individual measures such as window replacement, the new rules apply from mid-August. However, the Federal Office of Economics and Export Control is responsible for this. The previous subsidy program applies to new buildings until the end of the year. Only in 2023 is the new building subsidy to be redesigned. The federal government is relying much more on low-interest loans than before.