Germany cuts heat‑pump subsidy ceiling to €28,000

Effective 21 July 2026, Germany’s federal building‑efficiency programme (BEG) lowered the maximum eligible cost for heat‑pump installations from €30,000 to €28,000. The basic 30 % grant remains, so the highest possible subsidy is now €22,400 (80 % of €28,000). The climate‑speed bonus is reduced from 20 % to 16 % and will drop by four percentage points every six months from February 2027, disappearing entirely by August 2028. Income‑related bonuses are re‑scaled: households earning up to €30,000 receive a 40 % bonus (plus an additional 40 % if a child under 18 lives at home); the bonus falls to 30 % for incomes €30,001‑€40,000, 10 % for €40,001‑€50,000, and lower tiers thereafter.

The KfW bank announced the new limits and the gradual degression of the funding ceiling after February 2027. Stiebel Eltron launched an online calculator to help owners estimate their entitlement under the revised rules. Consumer‑aid services such as TapTapHome and the Verbraucherzentrale NRW published step‑by‑step guides, highlighting the importance of meeting the new income thresholds and timing the switch before the bonuses are reduced.

A smart‑meter requirement has also been introduced: eligible projects must now include an intelligent metering system (iMSys) to qualify for funding. Separately, prefabricated‑home builder Fingerhut Haus stressed that a tightly sealed building envelope, verified by blower‑door tests, is essential for the heat‑pump system to achieve its full efficiency potential.