German Heat Pump Subsidy Program 2026 Offers Up to 70% Funding

In 2026 Germany will support homeowners who replace fossil‑fuel heating systems with modern heat pumps through the KfW programme 458 (“Heizungstausch”). Eligible owners can receive a grant covering up to 70 % of eligible costs, capped at €21,000 for an investment volume of €30,000 per primary residence.

To qualify, owners must first sign a contract with a qualified installer that includes a “security clause” making the contract binding only after the KfW approval. The application can be submitted online via the “Meine KfW” portal only after this contract and the installer’s confirmation code are in place.

Technical requirements introduced on 1 January 2026 tighten the external‑unit noise limit to at least 10 dB below the European threshold. Installers must provide written proof that the selected model meets the updated BEG standards and appears on the current BAFA approved list.

The funding combines a baseline 30 % subsidy with three optional bonuses: a 20 % climate‑speed bonus for replacing oil, coal, night‑storage or old gas boilers; a 30 % income bonus for owners whose taxable household income does not exceed €40,000; and a 5 % efficiency bonus for heat pumps using ground‑, water‑ or waste‑heat or natural refrigerants such as propane. Although the theoretical total can reach 85 %, the grant is capped at the statutory 70 % maximum. After receiving digital KfW approval, owners have 36 months to complete the installation, submit invoices and claim the payment.