• The German Federal Government has defined key points for new conditions that apply to grants for promotion of heating systems and loans for energy-efficient refurbishment
• KfW to start the promotion under new conditions on 21 July 2026
• Customers with investment projects ready for application may continue to receive funding commitments under the previous terms until this date

Frankfurt am Main. On 8 July 2026, the Federal Government published the key points of a new version of the promotion conditions for the Federal Funding for Efficient Buildings (BEG) programme. As a result, KfW is amending its products for the promotion of heating systems and for the systemic energy-efficient refurbishment of residential and non-residential buildings in coordination with the contracting authority, the Federal Ministry for Economic Affairs and Energy (BMWE). The new promotion conditions will apply from Tuesday, 21 July 2026.

Until the start of the new promotion conditions, KfW’s promotion under the Federal Funding for Efficient Buildings programme will enter a transitional phase with the following conditions:

• Customers who already have a valid confirmation to their application, but have not yet submitted the promotion application can submit it under the current promotion conditions during the transitional phase until 20 July. KfW will approve these applications under the previous promotion conditions, if all eligibility requirements are met.
• Valid confirmations to the application that have already been created will be accepted during the transitional phase.
• New confirmations to the application can be created again after the new promotion conditions have started on 21 July 2026.
• Applications for the new, amended promotion conditions can be submitted from 21 July 2026 with existing, unused confirmations.

From Tuesday, 21 July 2026, the following key points apply to the promotion:

BEG promotion of heating systems for residential buildings

• The basic subsidy still amounts to 30% of the total eligible costs.
• The maximum promotion amount is EUR 28,000 for the first housing unit (EUR 15,000 each for the second to sixth housing units, EUR 8,000 for each subsequent housing unit).
• The maximum promotion amount for the first housing unit will be reduced by EUR 750 for the first time on 1 February 2027 and then every six months on 1 February and 1 August of each year.
• The promotion for owners occupying the buildings themselves will be even more differentiated by income than before, making it more socially fair. The income bonus can be applied for in addition to the basic subsidy and is structured as follows
  • 40% of the eligible total costs for owners occupying the buildings themselves with an annual household income of up to EUR 30,000;
  • 30% for annual household incomes up to EUR 40,000;
  • 10% for annual household incomes up to EUR 50,000.

Households with children also receive additional funding. The annual household income used in the calculation is reduced by a one-off family allowance of EUR 10,000 for families with at least one child under the age of 18 in the household.

• Families with children in the household may receive an income bonus of 40% of the eligible total costs with an annual household income of up to EUR 40,000; or 30% of the eligible total costs for an annual household income of up to EUR 50,000; or 10% of the eligible total costs for an annual household income of up to EUR 60,000.

For the promotion, this means: Children under the age of 18 living in the household reduce the taxable annual household income by a one-off amount of EUR 10,000. For example, for a family with at least one child and a taxable annual household income of EUR 40,000, the family allowance reduces the relevant income to EUR 30,000. This allows the family to apply for the 40% income bonus (instead of the 30% income bonus without family allowance). For example, until 31 January 2027, the family would receive funding of a maximum of EUR 22,400 (80% of EUR 28,000) for a new heat pump that costs EUR 32,000.

• The climate speed bonus will continue to be granted. This amounts to 16% of the eligible total costs and decreases by 4 percentage points for the first time on 1 February 2027 and then every six months on 1 February and 1 August of each year.
• A value-added bonus is to be introduced in the first quarter of 2027. The basic subsidy will then fall to 15% for all heat pumps. At the same time, heat pumps manufactured within the EU receive a value-added bonus of 15%.
• The efficiency bonus and emission reduction allowance are cancelled.

BEG promotion of heating systems for non-residential buildings

• The maximum promotion amount is EUR 28,000 for buildings up to 150 m² net floor area (plus EUR 197 per m² net floor area for buildings larger than 150 m² to 400 m², plus EUR 118 per m² net floor area for buildings larger than 400 m² to 1000 m², plus EUR 79 per m² net floor area for buildings larger than 1000 m²).
• The maximum promotion amount will be reduced for the first time on 1 February 2027 and then every six months on 1 February and 1 August of each year by EUR 750 for buildings up to 150 m² net floor area, by EUR 3 per m² net floor area for buildings up to 400 m², by EUR 2 per m² net floor area for buildings up to 1000 m², and by EUR 1 per m² net floor area for buildings with a larger net floor area.

BEG promotion for energy-efficient refurbishment of residential and non-residential buildings

• The additional bonus of five percent for the efficiency house levels with renewable energy class (EE class) is cancelled.
• For the refurbishment of residential buildings, the maximum loan amount is EUR 150,000 per housing unit.
• The amount of repayment bonuses granted on the loan amount is reduced by a flat rate of 10 percentage points each.
• The grant programme for municipal regional bodies is continued. The amount of grants is also reduced by 10 percentage points in relation to the eligible total costs.
• The bonus for serial refurbishment of residential buildings, which increases the repayment bonus, will be extended and will also be granted in the amount of five percent for serial refurbishments to efficiency house (EH) level 70 EE (previously: only for EH levels 40 and 55). For non-residential buildings, a corresponding bonus will be introduced serial refurbishing. Applications for this promotion are expected to be available from the end of September 2026.

KfW’s existing commitments in all of the aforementioned promotional products remain valid, and federal budget funds have been reserved for this purpose. Applications already received by KfW that have not yet received a commitment will be assessed and, if the promotion conditions are met, will be approved as usual.

The promotion is subject to the availability of federal government funds. There is no legal entitlement to funding.

Detailed information on all KfW programmes affected by the adjustments can be found starting from 9 July 2026 at www.kfw.de/heizung and www.kfw.de/beg, as well as on the respective product websites (in German):

BEG promotion of heating systems: Grants: www.kfw.de/458; www.kfw.de/459; www.kfw.de/522; www.kfw.de/422

BEG promotion for energy-efficient refurbishment of residential and non-residential buildings: www.kfw.de/261; www.kfw.de/263; www.kfw.de/264; www.kfw.de/464