Germany and KfW Extend Support for Effizienzhaus 55 New Buildings
The German federal government and KfW bank are extending their funding program for new buildings meeting the Effizienzhaus 55 energy efficiency standard. The support will continue until federal funds are depleted, but no later than the end of 2026.
Berlin – The German federal government and KfW, the state-owned development bank, have extended their funding program for new construction projects adhering to the Effizienzhaus 55 energy efficiency standard. This initiative, initially introduced in December 2025, aims to mitigate the backlog of construction projects (Bauüberhang) and will remain available until federal funds allocated for interest subsidies are exhausted, or by December 31, 2026, whichever comes first.
The extension moves beyond the original June 2026 deadline, aligning with broader governmental efforts to stimulate the housing sector. The program offers subsidized loans to encourage the completion of housing projects that have already secured building permits.
Eligible borrowers, including private and commercial investors, can receive loans of up to €100,000 per residential unit. KfW provides these loans with interest rates subsidized by federal funds. Municipal entities are eligible to apply for direct grants. To qualify for the funding, new buildings must meet the Effizienzhaus 55 standard and be heated entirely by renewable energy sources.
"We are pleased to continue offering Effizienzhaus 55 funding in conjunction with the Ministry of Construction to activate the construction backlog," stated Melanie Kehr, a board member at KfW responsible for domestic funding. "For ready-to-build projects with existing permits, we offer interest-subsidized KfW loans at attractive conditions using federal funds." The program's availability is dependent on continued federal funding.