• New terms now in effect
• Maximum funding amount of EUR 28,000
• Grant of up to 80% of eligible costs

Frankfurt am Main. The Federal Funding for Efficient Buildings programme (BEG) is to continue under the general conditions of the new German Building Modernisation Act (key points of the new version, in German). The aim is to reduce energy consumption and CO2 emissions in the building sector.

The new funding conditions apply from today:

BEG promotion of heating systems for residential buildings

• The basic promotion amounts to 30% of the total eligible costs.
• The maximum funding 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 funding 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 more differentiated by income, making it more socially fair. The income bonus can be applied for in addition to the basic promotion 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 receive additional funding. For these households, the assessment ceiling of the taxable household income is increased by a general and one-off family allowance of EUR 10,000.

• Families with children in the household and an annual household income of up to EUR 40,000 may receive an income bonus of 40% of the eligible total costs; 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.
• The climate speed bonus will continue to be granted. It 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 for all heat pumps then drops to 15%. 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 loan 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 funding 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 for serial refurbishing. Applications for this promotion are expected to be available from the end of September 2026.

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

Funding is subject to the availability of central government funds. There is no legal entitlement to funds.

Detailed information on all KfW programmes affected by the transition has been available since 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

A graphic explaining the new conditions that apply to the promotion of heating systems for residential buildings can be downloaded here: Infographic: Promotion of heating systems for residential buildings (JPG, 890 KB)(JPG, 890 KB, in German).

Infographic: Promotion of heating systems for non-residential buildings (in German)(JPG, 988 KB)