Germany's KfW heating subsidies see record heat‑pump demand in May 2026

In May 2026 the KfW approved almost 37,000 applications for new heating systems under the BEG‑Einzelmaßnahmen programme, of which roughly 34,000 were for heat‑pump installations. Heat pumps were therefore the most requested heating technology that month. Other categories received far fewer approvals – about 250 for solar‑thermal, 2,100 for biomass, 1,000 for district‑heat connections and a limited number of hydrogen‑compatible systems.

For the year to date the bank has sanctioned 189,317 residential and 3,184 non‑residential heating projects, including auxiliary measures such as income bonuses. The data show a pronounced east–west gap, with Saarland residents filing the most applications while city‑states Hamburg and Berlin submit the fewest. The Bundestag is currently debating the new Building Modernisation Act (GModG) that would replace the existing heating law, and the German Environmental Aid organisation has warned it will file a lawsuit if the draft provisions are adopted.

The strong uptake underscores continued public interest in renewable‑energy‑based heating solutions despite modest fluctuations from the previous month.