KfW Opens Heating Subsidies to Apartment Building Owners and HOAs

Berlin – KfW, Germany's state-owned development bank, has expanded its subsidy program for heating systems to include owners of apartment buildings and homeowners' associations (HOAs). The initiative, effective immediately, allows these property owners to apply for funding to install climate-friendly heating solutions in multi-unit residential properties.

The federal government is providing funds for these investments, which can be applied for as direct grants through KfW. To streamline the process, applications for eligible projects with complete documentation are processed digitally and automatically, aiming for decisions within minutes. In addition to grants, KfW offers low-interest supplementary loans, which can be applied for through local banks.

The subsidy program includes a base grant of 30% of eligible total costs. For apartment buildings and HOAs, maximum eligible costs are capped based on the number of residential units. Additional bonuses are available, such as a 5% efficiency bonus for high-efficiency heat pumps and up to a 20% 'climate speed bonus' for replacing certain older heating systems. A 30% income-based bonus for owner-occupiers and a supplement for biomass boilers are also offered. These bonuses can be combined, but the total subsidy cannot exceed 70%.

Applications are submitted via KfW's online portal. For apartment buildings and HOAs, a joint base application is filed, potentially supplemented by individual applications for owner-occupier bonuses. Previously, individual homeowners could apply for their own single-family homes since February. Businesses and municipalities will be able to apply from the end of August.

Work on heating system upgrades can commence before the application is submitted, provided the application is filed by November 30, 2024. However, from September 1, 2024, onwards, the application must be submitted before construction work begins.