New federal funding for efficient buildings programme starts

The German Federal Funding for Efficient Buildings (BEG) programme commenced with new terms on July 21, 2026, continuing its objective to decrease energy consumption and CO2 emissions in the building sector. The updated framework includes revised funding conditions for heating systems and energy-efficient renovations for both residential and commercial properties.

For residential buildings, the base funding for heating systems is set at 30% of eligible costs, capped at EUR 28,000 for the first housing unit. This maximum amount is subject to a phased reduction starting February 1, 2027. Funding for owner-occupiers is now more income-differentiated, with potential grants up to 40% of eligible costs. Additional support is available for families with children, and a climate speed bonus remains. From early 2027, a value-added bonus will be introduced for heat pumps manufactured within the EU.

Funding for heating systems in non-residential buildings is capped at EUR 28,000 for properties up to 150 m² of net floor area. For larger buildings, the funding amount is calculated based on area and will also be subject to phased reductions starting February 1, 2027.

Renovation subsidies have also been revised. The maximum loan amount for residential building renovations is EUR 150,000 per housing unit. Repayment bonuses are reduced by a flat rate of 10 percentage points. The bonus for serial refurbishment has been extended to cover efficiency house level 70 EE, and a similar bonus will be introduced for non-residential buildings. Applications for serial refurbishment funding are expected to be available from late September 2026.

KfW confirmed that existing commitments under all affected funding products remain valid and that federal budget funds have been reserved. However, the approval of new applications is contingent on the availability of central government funds, and there is no legal entitlement to funding.