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Are you facing the challenge of energetically modernising your property, but the costs seem overwhelming? With the Federal Funding for Efficient Buildings (BEG), you can receive up to 70% of the costs as a direct subsidy. This guide will show you how to submit the right applications and maximise your investment.
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The Federal Funding for Efficient Buildings (BEG) offers grants of up to 70% for heating system replacement and up to 20% for individual measures such as insulation or window replacement in 2024.
The responsibilities are clearly separated: the KfW is responsible for heating replacement and complete renovations, while the BAFA is in charge of individual measures on the building envelope.
A crucial procedural step is new: First, a contract must be concluded with a specialist company, and only then can the funding application be submitted.
Modernising a property is one of the most effective ways to reduce energy costs and increase the value of your asset. However, many owners hesitate due to the high initial investments. What if you didn't have to bear most of these costs alone? The German government supports you with significant grants. The Federal Funding for Efficient Buildings (BEG) has been restructured for 2024 to make the switch to renewable energies and efficiency measures even more attractive. With the right strategy, you can save thousands of euros while contributing to climate protection. This article guides you through the current programmes from KfW and BAFA and explains how you can get the maximum funding for your project.
The Federal Funding for Efficient Buildings (BEG) is the central instrument for green funding in Germany. Since the beginning of 2024, responsibilities have been clearly divided to simplify the process for you. For replacing your heating system and comprehensive renovations to improve building efficiency, the Kreditanstalt für Wiederaufbau (KfW) is your point of contact. Conversely, the Federal Office for Economic Affairs and Export Control (BAFA) grants subsidies for individual refurbishment measures on the building envelope, such as insulation or window replacement. This clear division ensures that you can access the appropriate funding pool for each project with just one application. Correctly categorising your project is the first step towards successful financing.
Replacing an old fossil fuel heating system will be more heavily subsidised in 2024 than ever before. KfW offers a base subsidy of 30% for anyone switching to a heating system based on renewable energies. If you replace your functional oil, coal, or night storage heater, or a gas heater that is at least 20 years old, you will also receive a climate speed bonus of 20%. For owner-occupiers with a taxable household income of up to €40,000 per year, there is an additional income bonus of 30%. The bonuses are cumulative, but the maximum grant is capped at 70% of the eligible costs of €30,000 for a single-family home, which equates to a maximum grant of €21,000. A sustainable energy supply thus becomes financially accessible. This tiered subsidy makes the transition particularly attractive for households with lower and middle incomes.
Not only is the replacement of heating systems, but also individual measures to improve energy efficiency, subsidised by the state. Through BAFA, you receive a basic subsidy of 15% for measures on the building envelope. These include:
Insulation of external walls or roof surfaces
Renewal of windows and external doors
Installation or optimisation of ventilation systems
Optimisation of the existing heating system (apart from replacement)
If you have an individual renovation road map (iSFP) prepared in advance by a certified energy efficiency expert, the subsidy rate increases by a further 5% to a total of 20%. At the same time, the maximum eligible costs rise from €30,000 to €60,000 per residential unit. Investing in an iSFP can therefore more than double your subsidy. An energy-efficient renovation not only reduces your heating costs but also sustainably increases the value of your property.
A crucial change in 2024 is the order of application submissions. You must first obtain a quote and conclude a supply or service contract with a specialist company. This contract must contain a condition precedent or condition subsequent, linking it to the granting of funding approval. Only afterwards may you submit the funding application to KfW or BAFA. You may only begin construction work after receiving the grant notification. Involving an energy efficiency expert is mandatory for almost all BEG funding schemes and ensures the quality of the measures. A funding check in advance can help plan the right steps. Careful planning and adherence to this sequence are crucial for the success of your application.
If you have missed the deadlines for applying or do not meet the requirements, there is an attractive alternative: the tax bonus for renovation measures. You can deduct 20% of your renovation costs, up to a maximum of €40,000 per property, from your tax liability over a period of three years. In the first and second year, 7% (up to €14,000) can be claimed each year, and in the third year, 6% (up to €12,000). This option cannot be combined with the BEG grants, but it provides a valuable alternative to reduce the financial burden of a sustainable renovation of old buildings. This creates a strong incentive for climate protection in the building stock even without direct subsidies.
The funding landscape for 2024 offers immense opportunities to significantly reduce the costs of an energy retrofit. With grants of up to 70% for heating replacements and up to 20% for individual measures, switching to green technologies becomes financially very attractive. The key to success lies in careful planning, adhering to the correct application sequence, and the mandatory involvement of an energy efficiency expert. Whether you choose a direct grant or the tax bonus, a thorough evaluation of your property and the planned measures is the best foundation. Take advantage of government support to increase the value of your property and reduce your energy costs in the long term. A data-driven analysis, like the one provided by Auctoa ImmoGPT, can give you an initial orientation for your project.
KfW provides detailed information about their programmes for energy-efficient refurbishment of existing properties.
The Federal Ministry for Economic Affairs and Climate Action (BMWK) offers comprehensive information on the energy transition in the building sector.
On gesetze-im-internet.de, you can find the full text of the Building Energy Act (GEG).
The Federal Statistical Office (Destatis) publishes press releases and statistics relevant to construction and housing data.
The DIW Berlin offers weekly reports on energy-efficient building refurbishment, investment trends, and climate targets.
The German Energy Agency (dena) provides comprehensive information on the energy transition and energy efficiency in Germany.
The Consumer Advice Centre offers independent energy advisory services for consumers.
Wikipedia provides an extensive article on energy-efficient buildings.
Who qualifies as an Energy Efficiency Expert (EEE)?
Energy Efficiency Experts are specially trained and certified professionals (e.g., architects, engineers, energy consultants) listed in the experts directory of the German Energy Agency (dena). The involvement of such an expert is mandatory for applying for most BEG funding.
What is the individual renovation roadmap (iSFP)?
The iSFP is a detailed document created by an Energy Efficiency Expert. It analyses the energy condition of your property and outlines step-by-step which renovation measures are advisable and in what order. The creation is also subsidised, and the implementation of the measures contained therein is rewarded with an additional subsidy bonus of 5%.
How long does it take for a funding application to be approved?
Processing times can vary. For KfW and BAFA, you should expect several weeks to a few months. Due to high demand, delays may occur. Be sure to factor this buffer into your project planning.
What is the difference between a grant and a supplemental loan?
A grant is a sum of money you receive and do not have to repay. A supplemental loan is a low-interest loan that you can apply for in addition to the grant to finance the remaining investment costs. Such a loan is available from KfW for home-using owners with a household income of up to €90,000.
Does the Climate Speed Bonus apply to the replacement of a gas floor heating system?
Yes, the bonus is also granted for the replacement of gas floor heating systems when converting to central heating. The bonus is paid for the early replacement of operational fossil heating systems and amounts to 20% until the end of 2028.
Can I apply for funding for a holiday home?
Yes, the BEG funding applies to residential buildings in Germany. The key is that the building meets the technical minimum requirements and is heated most of the year. The use as a main residence is not a condition for basic funding, but it is for the income bonus.
