Funding

Attractive funding for heating replacement

The "Federal Funding for Efficient Buildings - Individual Measures (BEG EM)" came into force on 1 January 2021. The BEG EM replaces the previous programmes "Market Incentive Programme for Renewable Energies in the Heating Market (MAP Part BAFA) 2 , the Energy Efficiency Incentive Programme (APEE), the Heating Optimisation Programme (HZO) and the funding of individual measures in the KfW programme "Energy-efficient Refurbishment" (Programme No. 430). The attractive funding quotas introduced in 2020 will also be applied in 2021 through the BEG EM.

1. BEG funding overview

Source: BAFA

2.1 Funding of heating systems in the BEG EM

In 2021, the BEG EM provides for the following funding quotas, which can also be found in the overview. Funding for individual measures is provided in the form of non-repayable grants in proportion to the eligible costs. This includes, among other things, the acquisition costs, the expenses for installation and commissioning, as well as expenses for necessary environmental measures. It should be noted that funding is only provided for measures in existing buildings that are at least five years old.

  • 35 % for heat pumps, wood boilers, pellet stoves with water pockets and renewable energy hybrid heating systems
  • 30 % for solar collector systems and gas hybrid heating systems
  • 20 % for gas condensing heating systems ("Renewable Ready" systems that are prepared for the subsequent integration of renewable energies and are upgraded to a gas hybrid system after two years at the latest)

If an old oil heating system is replaced at the same time, the subsidy is increased by 10% points (exception: "Renewable Ready" gas condensing boilers). If the eligible heating systems are installed as part of a subsidised individual renovation roadmap (iSFP), the subsidy rate increases by a further 5% points.  For wood boilers and pellet stoves with water pockets, an innovation bonus of a further 5% points is granted if an emission limit value of max. 2.5 mg/m3 is complied with.

The investment grants in the BEG EM programme can be applied for at the Federal Office of Economics and Export Control (BAFA) since January 2021.

2.2 Heating system optimisation

Funding is available for all measures to optimise the heat distribution system in existing buildings that increase the energy efficiency of the system, e.g. hydraulic balancing including adjustment of the heating curve, surface heating in combination with a heat pump. Minimum investment: 300 €.

2.3 System technology (except heating) in the BEG EM

The installation of system technology in existing buildings to increase the energy efficiency of the building is subsidised by 20 %:

  • Initial installation/renewal of ventilation systems in residential buildings in accordance with the Ecodesign Directive (centralised, decentralised systems with heat recovery and compact units).
  • Installation of digital systems to optimise energy operation and consumption or to improve the grid efficiency of the building ("Efficiency Smart Home").

For the funding of system technology (except heating), confirmation by an energy expert is required. Minimum investment: 2,000 €.

3. Tax incentives

Since 2020, it has been possible to receive tax incentives for expenditures on energy modernisation in owner-occupied residential buildings that are at least 10 years old. Measures subsidised through the BEG EM are eligible. In addition to the heating systems mentioned under 2, these include the replacement and installation of a ventilation system, the installation of digital systems for optimising energy operation and consumption, the optimisation of existing heating systems and measures on the building envelope. Homeowners can deduct 20 % of the investment costs from their tax liability via the tax incentive spread over three years. The renovation measures are carried out by specialist companies, which document the correct implementation of the measure in a specialist company certificate and issue an invoice. Both documents are then attached to the tax return. Simultaneous claiming of the tax subsidy and the subsidy via the BEG EM is not possible (prohibition of cumulation).

 

Finding the right funding programme

This brochure provides an insight into available funding programmes offered by KfW Bankengruppe and the Federal Office of Economics and Export Control (BAFA).

Moderne Heizungstechnik mit Geld vom Staat

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