faq
From now on, owners of owner-occupied houses who want to switch to climate-friendly heating can apply for grants from the KfW development bank. Here are the most important details.
What is funded?
The background to the new funding is the traffic light coalition’s heating law, which has been in force since January 1st. Among other things, there are new guidelines on how to promote the voluntary switch to climate-friendly heating. Heat pumps and solar thermal systems in particular are considered climate-friendly, but also certain wood or pellet heating systems.
how high is the Heating support?
The basic funding for all climate-friendly heating types is 30 percent of the investment amount. There can also be several special bonuses, for example if a salary falls below a certain limit, particularly inefficient heating systems are replaced and heat pumps with natural refrigerants or geothermal energy are used as a heat source. A surcharge of 2,500 euros is granted for biomass heating systems if they comply with a certain dust emission limit. A maximum of 70 percent of the investment amount for private owner-occupiers can be subsidized up to an investment amount of 30,000 euros.
Who can apply for funding?
Initially, only owners of single-family homes who live in them can submit the application. Other building owners still have to be patient. KfW is expected to release the application forms for landlords and homeowners’ associations in May and August respectively. However, all those eligible to apply can start replacing the heating system now and submit the application to KfW by November 30th. The prerequisite for the funding application is a previously concluded contract with a specialist company.
Is the funding pot enough?
According to the Federal Ministry of Economics’ assessment, the funding amount of 16.7 billion euros estimated in the current federal budget for 2024 is “adequate”, it said when asked by tagesschau.de with.
At the same time, demand is difficult to estimate. According to data from the Federal Association of Energy and Water Industries (BDEW), almost 72 percent of all heating systems in Germany were recently operated with gas or oil. If necessary, there would also be the possibility of supplementary budgets, according to the ministry. Corresponding budget titles have already been planned for future budgets.
Where can you submit the application?
The funding can be applied for on the “meine.kfw.de” portal. Due to high demand, there were waiting times in a virtual “waiting room” on the KfW portal in the morning. From this morning onwards the site was accessible again without any problems.
When does the heater need to be replaced?
There had been bitter disputes for months over the so-called heating law. In general, functioning heaters can continue to be operated. This also applies if a heater is defective but can still be repaired. Since January 1st, it has been mandatory that new buildings in new development areas must have heating with 65 percent renewable energy.
With the reform for more climate protection, the federal government wants to advance the heating transition in the building sector and protect consumers from price jumps for oil and gas if CO2 prices rise in the coming years.