Energy-related renovation projects of the heating system are subsidised by the Federal Government. This happens mainly via the CO 2 building renovation program of the KfW and the market incentive program for renewable energies (MAP).

Funding programs of KfW.

The replacement of old heating systems is funded by the KfW program „Energieeffizient sanieren“ (Energy efficient renovation) with subsidies or loans at low interest rates (with repayment bonuses). For single measures, the subsidy comes to 10 percent. For example, if the cost of renovating an old heating system amounts to 15,000 Euros, then the subsidy will be 1,500 Euros.

Not only the costs of the heat generator are considered but of all the related components, such as installing a high-efficiency pump, a modern radiator or renovating the chimney. In combination with other renovation measures, the subsidy may go up to 25 percent (renovation as per KfW efficiency house standard).

In addition, KfW supports technical energy-related planning and supervision of the construction by an expert. Up to 50 percent of the costs eligible for subsidy are granted here.

BAFA funding.

Solar heating systems, heat pumps and biomass systems up to 100 kW are funded by the market incentive program for renewable energies of the Federal Office of Economics and Export Control (BAFA) (larger systems can in turn be funded by the KfW program „Erneuerbare Energien“ (Renewable energies) in the form of loans at low interest rates).

Thus, for example, 140 Euros per m2 or at least 2,000 Euros are granted in case of solar thermal systems for combined domestic hot water and heating support. The funding for small heat pumps is in the range of 1,500 Euros up to 6,750 Euros per system. Wood boilers for single and two-family homes are funded by up to 3,500 Euros. In addition, the BAFA also subsidises mini-CHP systems up to 20 kWel . Here, subsidies up to 4,000 Euros are granted depending on the output.

Additional information about these funding programs is available on the following websites:

Federal Office of Economics and Export Control


Effiziente Heizsysteme mit Geld vom Staat

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