Germany's KfW launches new heat‑pump subsidy rules, transition ends July 21

The Kreditanstalt für Wiederaufbau (KfW) has temporarily shut its BEG (Federal Funding for Efficient Buildings) portal as it prepares to apply revised subsidy conditions for heat‑pump installations and energy‑efficient renovations. Applicants who already hold a valid confirmation but have not yet submitted a request may still apply under the old rules until 20 July 2026. From 21 July 2026 the new scheme takes effect.

Key changes include a reduction of the maximum grant for the first residential unit to €28 000, with lower caps for additional units, and a half‑yearly reduction of this ceiling starting February 2027. Income‑based bonuses become three‑tiered: 40 % for households earning up to €30 000, 30 % up to €40 000 and 10 % up to €50 000, with an extra €10 000 family allowance for households with children, pushing more families into higher bonus tiers. A “Made in Europe” value‑add bonus of 15 % will apply to EU‑manufactured heat pumps, while subsidies for non‑EU products drop to 15 % of eligible costs. The climate‑speed bonus of 16 % remains but will decline by 4 percentage points every six months from February 2027. The revised conditions also cover non‑residential buildings.

Stakeholders such as craft trades, energy consultants, planners, property managers and owners are urged to note the deadline for submitting applications under the previous terms and to prepare for the new, more differentiated funding framework.