Funding options for heating and energy-efficient renovation from July 2026
The federal funding for efficient buildings will be continued, but its conditions will be reorganized as of July 21, 2026. Here you will find the most important changes, transitional rules, responsibilities, and review steps for heating system replacement, heating optimization, and other energy-efficiency measures.
As of: July 14, 2026
The officially published effective date for the new funding conditions is July 21, 2026. Not July 22. This page is geared toward new applications as of July 21, 2026 and reflects the key points published by KfW, BAFA, BMWE, and the Federal Government as of the stated date.
KfW explicitly points out that the published information must still be confirmed by the final funding guideline. Legally and in terms of funding, the guideline valid on the day of application, the respective product information sheet, the technical minimum requirements, and the individual funding commitment are always decisive. Please re-check this information immediately before submitting your application.
Heating funding as of July 21, 2026: what changes
The basic funding remains in place. At the same time, technology-related surcharges are being eliminated, income-dependent bonuses are being re-tiered, and the eligible costs are being reduced.
Basic funding and eligible heating systems
The basic funding remains at 30 percent. According to the official KfW information, all heating systems previously funded remain within the funding framework in principle. However, the specific system must still meet all technical and procedural requirements.
- Heating funding continues via KfW
- Funding only for eligible projects and suitable technology
- No legal entitlement; budget funds and funding commitment remain required
Efficiency bonus and emission reduction surcharge
The previous efficiency bonus for certain heat pumps and the emissions reduction surcharge for particularly low-emission biomass heating systems will no longer apply under the new funding conditions as of July 21, 2026.
- No more efficiency bonus as of the cutoff date
- No separate emissions reduction surcharge as of the cutoff date
- The fundamental eligibility of the respective technology must be assessed separately from this
Income bonus for owner-occupiers
For owner-occupiers, the income bonus is tiered according to the taxable annual household income.
- 40 percent for annual household income up to 30,000 euros
- 30 percent for annual household income up to 40,000 euros
- 10 percent for annual household income up to 50,000 euros
- One-time family bonus: The income limit increases by 10,000 euros if there is at least one minor child
Eligible costs for residential buildings
As of the cutoff date, lower maximum eligible amounts apply for heating system modernization.
- 28,000 euros for the first residential unit
- 15,000 euros each for the second to sixth residential unit
- 8,000 euros each for each additional residential unit
- As of February 1, 2027, the amount for the first residential unit decreases by 750 euros every six months
Basic funding and bonuses are not added without limit. The regular overall cap is 70 percent. For certain owner-occupiers with low income, the cap can be up to 80 percent. The income and bonus requirements of the final funding conditions are decisive.
Transitional arrangement in July 2026
For the question of whether old or new conditions apply, the time of application and the timely technical confirmation are decisive.
KfW: BzA and application until July 20
- The previous funding conditions can still be used until July 20, 2026, 8:00 PM .
- For this, a valid confirmation of application, or BzA for short, must have been created and applied for by July 8, 2026 .
- Between July 9 and 20, 2026, no new BzA can be created.
- As of July 21, 2026, the new conditions apply to new projects.
Already approved applications remain unaffected by the change. Complete applications still under review will be processed according to the conditions applicable at the time of application.
KfW transition notesBAFA: new TPB as of July 21
TPB IDs created up to and including July 8, 2026, can be used for an application under the previous conditions up to and including July 20, 2026. For applications as of July 21, 2026, new TPB IDs according to the new conditions are required.
Already submitted applications
According to official information, the conditions at the time of submission apply to already submitted applications. Approved approvals remain binding, provided that the funding conditions are properly demonstrated.
Which authority is responsible?
The BEG structure remains in place. The decisive factor is whether it concerns a heating system replacement or other individual energy-efficiency measures.
Heating system replacement and heat generators
KfW remains responsible in particular for:
- Purchase and installation of eligible heating systems
- Solar thermal systems, biomass heating and electrically driven heat pumps
- Fuel cell heating and certain innovative heating technologies
- Connection to a building or district heating network
- Eligible ancillary measures related to the heating measure
Other individual efficiency measures
The following can still be applied for at BAFA in particular:
- Measures on the building envelope
- System technology other than heating
- Heating optimisation
- Construction, conversion and extension of building networks
- Specialist planning and construction supervision for eligible measures
Eligibility is not a funding commitment
The federal government has passed the Building Modernisation Act in parliament; the key changes can come into force after promulgation. The announced greater freedom of choice in heating technology does not mean that every legally installable heating system will receive state funding.
Do not equate gas and oil heating
Even if gas or oil heating systems can in principle be installed under the new legal system, this does not result in BEG eligibility. BEG heating funding continues to target efficient, climate-friendly systems and the measures that are expressly eligible in each case.
BAFA funding for efficiency measures
In addition to heating funding, changes to other individual efficiency measures have also been announced.
15 percent for efficiency measures
The basic funding for measures on the building envelope, system technology without heating and certain heating optimisation measures remains at 15 percent in principle. Measure-specific requirements and upper limits must continue to be observed.
iSFP bonus remains at 5 percent
The iSFP bonus is to remain at 5 percent. However, the requirements will be raised and the bonus will in future be linked to a minimum eligible investment volume. The exact threshold and application must be taken from the final BAFA conditions and special FAQ before submitting an application.
Degression of eligible costs
For renovation measures on apartment buildings, a gradual reduction in eligible costs has been announced. Since the final tiering depends on the guidelines, it must be checked for the specific application in the BAFA portal or in the final guideline.
Bonus for particularly inefficient buildings
From 2027, an additional bonus for efficiency measures on particularly energy-inefficient buildings, known as Worst Performing Buildings, has been announced. Until the specific requirements are published, this bonus must not be firmly planned for.
Heating optimization: important requirements
- The heat generator must generally be older than two years.
- For fossil fuel heat generation, the system must generally not be older than twenty years.
- For water-based systems, a hydraulic balance according to method B is generally required.
- The basic subsidy rate is currently 15 percent.
- For certain measures to reduce emissions from biomass heating systems, BAFA specifies a subsidy rate of 50 percent.
Not every pump, control, insulation, or storage component is eligible for funding on its own. The decisive factors are the integration into an eligible measure, the technical requirements, and complete documentation.
BAFA heating optimizationCorrectly classify funding-relevant product groups
The following information is a guide for typical shop categories. A product group or badge alone never establishes an entitlement to funding.
Heat pumps
Electrically driven heat pumps generally remain part of the heating funding. The specific model must meet the technical minimum requirements and, if applicable, be listed in the heat generator portal. The previous efficiency bonus will no longer apply from July 21, 2026.
View heat pumps →Biomass and wood heating systems
Eligible biomass heating systems can continue to be considered if the system, installation, and project meet the requirements. The separate emission reduction surcharge will no longer apply from the effective date. The WEP listing and technical emission requirements must be checked on a product-specific basis.
View wood boilers →Solar thermal systems
Solar thermal systems continue to be among the eligible heating measures listed by KfW. The technical suitability, WEP listing, and integration into the specific project are decisive.
View solar collectors →Storage, control, and system technology
Storage units, controls, pumps, hydraulics, and other system components can be eligible for funding as ancillary or accompanying costs if they are required for an eligible overall measure. The isolated purchase of a product is not automatically eligible for funding.
View system technology →Photovoltaics and battery storage
Photovoltaics and battery storage are not equivalent to BEG heating funding. Depending on the project, other KfW, state, municipal, tax, or grid programs may be possible. These must be checked separately.
View PV accessories →Complete packages
In the case of complete packages, the entire purchase price is not automatically eligible for funding. Every component included, planning, installation, and ancillary measures must match the funding eligibility criteria and be correctly stated in the documentation.
View complete packages →The BAFA heat generator portal publishes potentially eligible biomass systems, solar systems, and heat pumps. Even with a listing, applicants, buildings, installation, specialist companies, costs, and documentation must meet the applicable conditions.
Prepare and apply for funding correctly
The most common mistake is a start of the project that is detrimental to funding. Coordinate the sequence, contract, technical confirmation, and application before ordering and implementation.
Check the project and applicant
Clarify the building type, age of the building, ownership, owner-occupancy, income limits, existing heating system, and the planned measure. This determines the funding body, possible bonuses, and documentation.
Check the technology and WEP listing
A specialist company or energy efficiency expert must confirm that the specific system meets the technical minimum requirements. For heat generators, also check the current WEP listing.
Conclude a funding-compliant contract
For the KfW application, a supply or service contract with a condition precedent or subsequent condition regarding the funding commitment must be in place before the application is submitted. A contract without this condition or work that has already begun can exclude funding. A subsequent addition of the condition is not permitted.
Have the BzA or TPB prepared
For KfW heating funding, you need a confirmation for the application, BzA. For many BAFA measures, a technical project description, TPB, with a valid TPB-ID is required.
Submit the application before the start that is detrimental to funding
Submit the application via "Meine KfW" or the BAFA portal. With KfW, implementation should only begin after approval. With BAFA, a start after the application has been submitted but before the grant notification is generally at your own financial risk and only in accordance with the current program conditions.
Implement, document, and submit documentation
Keep contracts, invoices, payment receipts, specialist company declarations, and technical documents. After completion, BnD is required for KfW and, where applicable, TPN and proof of use for BAFA measures.
No binding order without a funding check
A normal, unconditionally effective purchase or work contract before the funding application can be considered a start of the project. Coordinate the contract form with the specialist company or energy efficiency expert before signing.
Involve experts early on
The dena's list of energy efficiency experts helps in the search for approved specialists. For certain heating measures, a correspondingly registered specialist company can also issue the technical confirmation.
Further changes to the BEG from July 21, 2026
In addition to heating funding, the KfW programs for efficiency buildings and non-residential buildings will also be adjusted. The details are usually of secondary importance for private individual purchases, but they are part of the complete reform overview.
Complete renovation of residential buildings to an efficiency house
- The funding loan increases to up to 150,000 euros per residential unit.
- Only the efficiency house levels 40, 55, 70, 85 and listed buildings will continue to be funded, each as an EE or NH class.
- The repayment subsidies will be reduced by a flat rate of 10 percentage points each.
- The additional bonus of 5 percentage points for the EE class will be eliminated.
- The bonus for serial renovation remains at 5 percent and is to be extended to EH 70 EE; applications are expected to be possible from the end of September 2026.
Heating modernization in non-residential buildings
- The basic funding remains at 30 percent.
- Up to 150 m² of net floor area, the maximum funding amount is 28,000 euros.
- For areas over 150 to 400 m², an additional 197 euros per m² is added.
- For areas over 400 to 1,000 m², an additional 118 euros per m² is added.
- For areas over 1,000 m², an additional 79 euros per m² is added.
- The efficiency bonus and emission reduction surcharge will be eliminated.
- From February 1, 2027, these upper limits will also be reduced semi-annually.
Complete renovation of non-residential buildings
- The maximum funding amount remains at 10 million euros per project.
- Only EG 40, EG 55, EG 70 and listed buildings will continue to be funded, each as an EE or NH class.
- The repayment subsidies will be reduced by a flat rate of 10 percentage points.
- The additional 5-percentage-point bonus for the EE class will be eliminated.
- A bonus for serial renovation of non-residential buildings is to be introduced in the second half of 2026.
Outlook: Heat pump value-added bonus from 2027
A value-added bonus is planned for the first quarter of 2027. According to the KfW announcement, the basic funding for heat pumps manufactured, built or assembled outside the EU is then to fall to 15 percent. At the same time, a value-added bonus of 15 percent is planned for heat pumps manufactured within the EU. This regulation is still future planning and may only be included in purchase and funding decisions after the binding conditions have been published.
Avoid typical mistakes
Funding applications often fail not because of the product, but because of the order, contract design or proof.
Wrong key date
According to the official announcement, the new funding conditions apply from July 21, 2026, not only from July 22.
Unconditional order before application
A contract without the prescribed funding condition or an actual start of work can be detrimental to funding.
Badge confused with approval
"Eligible" only means potentially suitable. It does not replace a WEP check or individual approval.
Wrong funding program
KfW heating grants, BAFA efficiency measures, PV programs, and tax incentives have separate rules.
Ancillary costs not clearly itemized
Storage, hydraulics, controls, electrical, and installation costs must be clearly allocated to the eligible project.
Missing documentation or deadlines
Incomplete invoices, missing payment receipts, expired IDs, or late documentation jeopardize the payout.
Frequently asked questions about funding from July 2026
From which date do the new funding conditions apply?
The official effective date is July 21, 2026. To apply under the previous KfW conditions, a valid BzA issued no later than July 8, 2026 was required; the application must be submitted by July 20, 2026 at 8:00 PM.
What is the maximum heating grant in the future?
The regular cap from the base grant and bonuses is 70 percent. For certain owner-occupiers with low income, the overall cap can be up to 80 percent. The actual amount depends on all personal and technical requirements.
Which bonuses will be discontinued?
The efficiency bonus and the emissions reduction surcharge will be discontinued as of July 21, 2026. The climate speed bonus remains at 16 percent; the income bonus will be restructured.
Are heat pumps, biomass, and solar thermal still eligible?
These heating systems remain within the funding framework in principle. However, the specific system and the entire project must meet the applicable technical minimum requirements. A WEP listing only indicates potential eligibility and is not a commitment.
May I order before submitting the funding application?
For KfW heating grants, a supply or service contract with a condition precedent or subsequent regarding the funding approval must be in place before the application is submitted. A standard contract without this clause or the actual start of work can exclude funding. Have the contract structure professionally reviewed.
What happens to already approved or submitted applications?
Already granted approvals remain valid. Complete applications are generally processed according to the conditions that applied at the time of application. The approved conditions must then be properly documented.
Are gas and oil heating systems now funded?
No, the announced legal possibility of continuing to install such heating systems does not imply blanket funding. Legal admissibility and BEG eligibility are two separate checks.
Does the iSFP bonus still apply?
The iSFP bonus is to remain at 5 percent, but will be tied to stricter requirements and a minimum eligible investment volume. The exact application must be checked against the final BAFA guideline and the special FAQ for the specific application.
Are photovoltaics and battery storage funded under the heating subsidy?
Not automatically. PV and storage systems are subject to other funding and financing routes. Only if a component is expressly recognized as an eligible ancillary measure under the specific program conditions can it be considered in connection with another measure.
Can the GEMA Shop guarantee funding?
No. The GEMA Shop can provide product information and initial technical guidance. The binding funding review, planning, application, and confirmation are carried out by the responsible funding body, a specialist company, and, if applicable, an energy efficiency expert.
Verified official information sources
The links lead to the official pages of the responsible federal authorities. External pages open in a new tab.
- KfW: Adjustments to BEG 2026 Funding rates, bonuses, and maximum amounts
- KfW: Current information on heating subsidy Effective date and transition period
- KfW: Heating subsidy for private individuals – residential buildings 458 Product conditions and eligible measures
- KfW: Application and proof via “My KfW” Contract, BzA, BnD, and process
- BAFA: Funding program overview Responsibility and BEG individual measures
- BAFA: Information on applying TPB, application, TPN, and proof of use
- BAFA: Heating optimization Measures, requirements, and funding rates
- BAFA: Heat generator portal Official WEP lists
- BMWE: Federal funding for efficient buildings Reform overview and FAQ
- Federal Government: Building modernization act Legal classification and continuation of funding
- dena: Energy efficiency expert list Specialists for planning and proof
- BAFA portal Application and processing status
Suitable technology in the GEMA Shop
Use the shop categories for product selection. Then check the eligibility of the specific model and the overall project with a specialist company or energy efficiency expert.
Heating systems
Heat pumps, wood heating, pellet boilers, combination boilers, and other heating technology.
View heating systems →Solar technology
Solar thermal, solar collectors, photovoltaics, and related components.
View solar technology →Storage technology
Buffer, hygiene, combination, hot water, and heat pump storage tanks.
View storage technology →Guide
Technical guidance on heating systems, storage, selection, and integration.
Open guide →Coordinate technical selection before applying
Do you need product data, documents, or an initial assessment of suitable components? Send us the product link, details about the building, the existing heating system, and the planned system. The funding check itself is carried out by the responsible funding body and the qualified professionals.