KfW continue. to consistently implement its roadmap for the promotion of heating systems

• Third applicant group connected to KfW’s online customer portal from today
• Promotion is now open to all private and commercial applicant groups
• Grant commitments and thus digital and automated reservation of promotional funds

KfW is continuing to consistently implement the promotional roadmap in the promotion of heating systems. Applications for KfW Promotion of heating systems are now open to the third group of applicants. New additions include companies for residential and non-residential buildings, owners of rented single-family houses and owners of rented and self-occupied apartments in housing associations (WEG) for measures implemented on individual properties.

KfW is implementing the Promotion of heating systems on behalf of the Federal Ministry for Economic Affairs and Climate Action, which provides funds from the Climate and Transformation Fund for investments related to replacing heating systems. The grant can be applied for directly in KfW’s online customer porta. Since the start of promotion on 27 February 2024, around 93,000 grant commitments have been issued amounting to around EUR 1.3 billion.

In addition, there are low-interest supplementary loans for investments in both residential and non-residential buildings. Customers can apply for these loans from banks and savings banks. The aim of the grants and loans is to accelerate the transition to climate-friendly heating, thereby reducing greenhouse gas emissions from heat supply in the building sector.

“We are continuing our consistent implementation of the roadmap for the promotion of heating systems and, as planned, the third group of applicants will be able to submit applications at the end of August. All in all, companies and all private individuals who own property can now apply for support for the transition to climate-friendly heating in residential and non-residential buildings via our online customer portal. Grant commitments and thus the reservation of promotional funds are generally made digitally and automatically in a few minutes if documentation is complete and the projects are eligible. This gives the customer rapid planning security for the financing of their project,”

said Katharina Herrmann, KfW’s Executive Board member responsible for domestic promotional business.

“Replacing the heating system is a major financial challenge for private individuals and companies alike. This is where the Federal Government and KfW offer promotion and help to reconcile climate friendliness and affordability.”

The funding details:

• Applicant companies may apply for a grant for their residential and non-residential buildings for up to 35% of the eligible costs (30% basic subsidy; 5% potential efficiency bonus). In addition, it is also possible to apply for a flat-rate emission reduction allowance of EUR 2,500. In the case of residential buildings owned by companies, the maximum amount of eligible total costs depends on the number of housing units in the respective multi-occupancy building. In the case of companies’ non-residential buildings, the amount is determined by the net floor area. Details can be found at www.kfw.de/459 (in German) and www.kfw.de/522 (in German).
• The KfW grant promotion also consists of a basic subsidy and several possible bonuses for owner-occupied homes and lessors of single-family houses, housing associations and private owners of multi-occupancy buildings. The basic subsidy also amounts to 30% of the eligible total costs for private individuals. In addition, various other grant components are possible depending on the applicant group (efficiency bonus 5%, climate speed bonus 20%, income bonus of 30%). The grant may not exceed 70% of the eligible total costs. On top of this, a lump sum emission reduction allowance of EUR 2,500 may be possible. The eligible total costs are calculated on the basis of the number of housing units. For further information, please visit www.kfw.de/458 (in German)
• Municipalities can now also carry out heating system replacement projects in residential and non-residential buildings. KfW offers a transitional scheme in the form of a project notification, pursuant to which the promotional funds are reserved for the applicant municipalities. Work is currently in progress to connect the municipalities to KfW’s online customer portal as a separate applicant group. It is expected that registrations and applications from municipalities will be possible from the end of November. You can find more information at: www.kfw.de/422 (in German)

At the same time, KfW continues to implement its roadmap for the promotion of heating systems. The submission of evidence for the disbursement of grants for heating replacement will be introduced in a staggered schedule according to applicant groups, by analogy to the application phases. Submission of evidence is possible approximately six months after the start of the application period for the respective applicant group. For example, the first group of self-occupied single-family homeowners who were able to apply from the end of February will be able to submit all documents digitally from 30 September 2024. After KfW’s positive review of the supporting documents and the eligibility requirements, the grant is transferred to the grant recipient’s bank account, generally by the end of the following month at the latest.

www.kfw.de/heizung (in German)