FAQ
Status: 08.04.2022 10:17 a.m
The state KfW subsidy program for energy-saving new buildings is being launched again. Applications can be submitted soon. However, there are a few things to consider. An overview.
From April 20th, anyone who builds a new, energy-saving house can apply for government funding from the state-owned KfW Bank. Economics Minister Robert Habeck announced this this week. However, this program is limited – and the budget may soon be exhausted.
What will the new program fund?
The new support program of the KfW bank is for new buildings according to the EH-40 standard. This includes homes that meet EH-40 efficiency standards, EH-40 plus and EH-40 sustainability ratings. Applications for the new funding can be submitted from April 20th as part of the Federal Funding for Efficient Buildings (BEG). The current funding is limited until December 31, 2022.
What is an energy efficiency class?
EH-40 means that a building built to this standard uses only 40 percent of the energy that a reference home requires. The following applies to the so-called energy efficiency classes: the smaller the number, the more energy-efficient a building is.
How much money is available?
A budget of one billion euros is available for the new program, which can be used to fund new construction. However, the money will probably not last long, since when the program was stopped in January, according to the “Handelsblatt”, there were still around 24,000 applications for building subsidies, the need for funding for which was estimated at 7.2 billion euros. When the new program was presented, Federal Economics Minister Robert Habeck pointed out that the funds would probably be exhausted quickly: “In order to make it possible for as many applicants as possible to apply for funding, we have reduced the funding rates.”
What will change with the new rules?
The federal government has halved the subsidy rates for individual construction projects. The building class EH-40 is subsidized with ten percent of a maximum loan amount of 150,000 euros. So you get a maximum of 15,000 euros. For houses in the EH-40 sustainability class and EH-40 plus houses, the new grant is a maximum of 12.5 percent of a loan amount of 150,000 euros, i.e. up to 18,750 euros.
At the same time, the funding conditions were changed. For example, the installation of gas heaters in new buildings is no longer funded. “We are ending an anachronism. That is always politically appropriate,” said Habeck.
Furthermore, efficiency houses according to the EH-55 standard are no longer funded. This efficiency standard is now standard for new buildings, said Economics Minister Robert Habeck. Builders who had planned EH55 homes when the grant originally ended on January 31 this year but had not yet submitted their grant applications must now implement the stricter rules. The same applies to applications that have already been submitted but were no longer approved by the end of funding on January 24th.
How do you get KfW funding?
Funding for energy-efficient construction is always applied for before the actual start of construction. In order to receive funding, the new building must meet the standards of efficiency level EH-40. “This can be achieved in many different ways and depends on the architectural style of the house in question,” explains a spokeswoman for KfW when asked by tagesschau.de. That is why every application needs to be assessed by an energy expert.
In order to check which efficiency level their own house achieves, builders with a certified energy expert must enter the individual data of the house on the KfW website: “The energy level of the house is then automatically calculated there, and with a corresponding document you then receive the subsidy at the bank,” said the KfW spokeswoman.
What will apply to new construction subsidies in the future?
With the restart on April 20, the funding is to be gradually redesigned. The government’s goal is to “step by step gear the new building subsidies towards more and more sustainability and efficiency,” said Minister of Economics Habeck. This is to be done in three steps: In the first step, from April 20, EH-40 houses, EH-40 plus houses and new buildings in the EH-40 sustainability class will be funded again. The one billion euros that have now been made available are earmarked for this.
If the one billion euros are exhausted this year, according to the ministry, the new building subsidy in the EH40 sustainability program should be continued seamlessly with more demanding conditions. The program should then only allow new construction funding in combination with the quality seal for sustainable building. This Level 2 program is scheduled to last until December 31st.
As a third step, a new comprehensive program entitled “Climate-friendly construction” is planned from January 2023. According to the ministry, details are still being worked out. However, it has already become known that greenhouse gas emissions in the life cycle of buildings in particular should be given greater attention.