Are you facing the challenge of modernising your property in terms of energy efficiency, 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 grant. This guide shows you how to submit the right applications and maximise your investment.
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The topic briefly and concisely
The Federal Funding for Efficient Buildings (BEG) will offer grants of up to 70% for heating 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 replacements and complete renovations, while the BAFA is responsible for individual measures on the building envelope.
A crucial procedural step is new: first, a contract must be concluded with a specialist company before the application for funding can be submitted.
Modernising a property is one of the most effective methods 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 the majority of these costs alone? The German government supports you with substantial 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 to obtain the maximum funding for your project.
BEG 2024: The two pillars of your refurbishment funding
The Federal Funding for Efficient Buildings (BEG) is the central instrument for green grants in Germany. Since early 2024, responsibilities have been clearly divided to simplify the process for you. For the replacement of your heating system and comprehensive renovations to efficiency house standards, the Kreditanstalt für Wiederaufbau (KfW) is your point of contact. On the other hand, the Federal Office for Economic Affairs and Export Control (BAFA) provides grants for individual renovation measures on the building envelope, such as insulation or window replacement. This clear separation ensures that you can access the right funding pot for each undertaking with just one application. Correctly assigning your project is the first step towards successful financing.
Heating exchange: Benefit from up to 70% subsidy
Replacing an old fossil fuel heating system will be subsidised in 2024 more than ever before. The KfW offers a basic subsidy of 30% for anyone switching to a heating system based on renewable energy. If you replace your functional oil, coal, or night storage heating system or a gas heating system that is at least 20 years old, you will receive an additional 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 can be combined, but the maximum grant is capped at 70% of the eligible costs of €30,000 for a single-family home. This corresponds to a maximum grant of €21,000. A sustainable energy supply thus becomes financially achievable. This tiered subsidy makes the transition particularly attractive for low- and middle-income households.
Increase Efficiency: Grants for Insulation, Windows and More
Not only the replacement of heating systems, but also individual measures to improve energy efficiency are subsidised by the government. Through BAFA, you receive a basic subsidy of 15% for measures on the building envelope. These include:
Insulation of exterior walls or roof surfaces
Renewal of windows and exterior doors
Installation or optimisation of ventilation systems
Optimisation of the existing heating system (apart from replacement)
If you have an individual renovation schedule (iSFP) drawn up by a certified energy efficiency expert beforehand, the funding rate increases by an additional 5% to a total of 20%. At the same time, the maximum eligible costs increase from €30,000 to €60,000 per residential unit. Investing in an iSFP can therefore more than double your subsidy. An energy-efficient modernisation not only reduces your heating costs but also sustainably increases the value of your property.
The correct application: Avoid mistakes, maximise funding
A crucial innovation in 2024 is the order of the application process. You must first obtain a quote and enter into a delivery or service contract with a specialist company. This contract must include a suspensive or resolutory condition that ties it to the grant approval. Only then can you submit the funding application to the KfW or BAFA. You may not commence construction until you receive the grant notification. The involvement of an energy efficiency expert is mandatory for almost all BEG funding programmes and ensures the quality of the measures. A funding check in advance can help plan the right steps. Careful planning and adherence to this order is crucial for the success of your application.
Alternative tax bonus: Deduct 20% of the costs directly from taxes
If you have missed the deadlines for submitting an application 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, but no more than €40,000 per property, from your tax liability over a period of three years. In the first and second years, 7% (up to €14,000) can be claimed each year, and in the third year, 6% (up to €12,000) can be claimed. This option cannot be combined with the BEG grants, but it is a valuable alternative for reducing the financial burden of a sustainable renovation of old buildings. Thus, even without a direct subsidy, a strong incentive is created for climate protection in the building stock.
Conclusion: Strategic planning is the key to the grant
The funding landscape for 2024 offers immense opportunities to significantly reduce the costs of energy-efficient refurbishment. With grants of up to 70% for heating system replacement and up to 20% for individual measures, the switch 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 opt for a direct grant or the tax bonus, a thorough assessment 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, as offered by Auctoa ImmoGPT, can provide you with an initial orientation for your project.
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Additional useful links
KfW provides detailed information on their funding programmes for the energy-efficient renovation 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 provides weekly reports on energy-efficient building renovation, 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 a comprehensive article on energy-efficient buildings.
FAQ
Who qualifies as an energy efficiency expert (EEE)?
Energy efficiency experts are specially trained and certified professionals (e.g., architects, engineers, energy advisors) who are listed in the expert directory of the German Energy Agency (dena). Engaging such an expert is a mandatory requirement for applying for most BEG subsidies.
What is the individual renovation roadmap (iSFP)?
The iSFP is a detailed document created by an energy efficiency expert. It analyzes the energy condition of your property and lays out step-by-step which renovation measures are sensible and in which order. The creation is also supported, and implementing the measures contained within it is rewarded with an additional funding bonus of 5%.
How long does it take for a grant application to be approved?
Processing times may 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 supplementary loan?
A grant is a sum of money that you receive and do not have to repay. A supplementary loan is a low-interest loan that you can apply for in addition to the grant to finance the remaining investment costs. For owner-occupiers with a household income of up to €90,000, such a loan is available from KfW.
Does the climate speed bonus also apply to the replacement of a gas floor heating system?
Yes, the bonus is also granted for the replacement of gas floor heating when switching to a central heating supply. The bonus is paid for the early replacement of functional fossil fuel heaters and amounts to 20% until the end of 2028.
Can I also apply for funding for a holiday home?
Yes, the BEG funding is applicable for residential buildings in Germany. The crucial factor is that the building meets the technical minimum requirements and is heated for most of the year. Use as a primary residence is not a condition for the basic funding, but it is for the income bonus.
