KfW resumes and expands grant funding for municipal energy projects
The German development bank KfW has relaunched its municipal energy efficiency grant program with 75 million euros in funding for 2025 and updated terms.
KfW has resumed its grant program for energy-efficient urban renewal, aimed at supporting municipalities in planning and implementing climate-protection measures. The program, backed by the Federal Ministry for Housing, Urban Development and Building, has a budget of 75 million euros for 2025.
The revised program introduces more favorable terms, including a grant rate of up to 90 percent for financially constrained municipalities. Furthermore, the support period for project management has been extended to five years, with the maximum grant amount increased to 400,000 euros. These changes are intended to help local governments transition from general planning to concrete energy-saving actions.
Melanie Kehr, member of the KfW Executive Board, stated that the funding allows municipalities to secure the necessary expertise to execute energy transitions, thereby stimulating local economies. Previously, the program has supported over 1,800 districts in their efforts to modernize energy supplies and utilize renewable resources.
Applications for the program have been accepted since November 26, 2025.