100 days of heating promotion: KfW draws up a positive first interim balance sheet

• Around 34,000 grant commitments with a total volume of EUR 507 million by 31 May 2024
• Katharina Herrmann, Member of the Executive Board of KfW: “Important component of the energy transition in the building sector”
• Grant of at least 30% and up to 70% of the eligible total costs possible

100 days after the start of the new promotion of the transition to climate-friendly heating in accordance with the Building Energy Act, KfW draws up a positive first interim balance sheet.

“Promotion is an important component of the energy transition in the building sector – and it is catching on,”

said Katharina Herrmann, Executive Board Member responsible for domestic promotional business, on Friday in Frankfurt am Main.

"By the end of May, KfW had committed around 34,000 grant applications for the replacement of old heating systems. Promotional funds of EUR 507 million have already been reserved for customers."

KfW highlighted the high level of customer acceptance of the fast and seamless online application process, as emphasised by Katharina Hermann:

“If all documentation is complete and the projects are eligible for promotion, we send the grant commitment digitally within minutes. This gives the customer immediate certainty about the amount of financial support that will be available for their project.”

KfW is implementing the promotion of heating from federal funds in accordance with a promotional roadmap agreed with the Federal Ministry for Economic Affairs and Climate Action:

• Owners of single-family houses have been able to apply for the promotion since 27 February.
• The second group of applicants, private owners of multi-family houses and housing associations (WEG), followed as planned on 28 May.
• The third and last applicant group will follow at the end of August. This includes companies and municipalities as well as owners of rented single-family houses and housing associations regarding measures on individual property.

In addition to a basic subsidy of 30% of the eligible total costs, several bonuses are also available. The investment grant can reach a maximum of 70%.

Customers have 36 months to replace the heating system. Evidence of implementation can be submitted approximately six months after the start of the respective applicant group. Launched at the end of February, the group of self-occupied single-family homeowners can submit digital evidence in September as planned and, after it has been successfully reviewed, receive payment from October. In addition to the grant, KfW offers low-interest supplementary loans for the investments associated with replacing heating systems, which customers can apply for from their regular bank.

All applicant groups can start eligible projects for the replacement of heating systems now. If the project starts by 31 August, the application can be submitted up to 30 November. From 1 September 2024, the application must always be submitted before the work begins.

“People in Germany want to participate in the energy transition,”

said Katharina Herrmann.

"As a bank committed to responsibility, we at KfW help citizens to reconcile climate friendliness and affordability. Together, we will ensure that Germany makes rapid progress when it comes to climate protection in its building stock."

Press material is available at: www.kfw.de/Pressematerial

Details on the heating promotion are available at www.kfw.de/heizung