⚡ In brief: Those who renovate for energy efficiency in 2026 can receive subsidies of up to 80% of costs — through BAFA grants, KfW loans, and various bonuses. Important: Always apply BEFORE starting the work!
🔄 Update (July 21, 2026): The new BEG conditions have applied since July 21, 2026 (funding guideline of July 17, 2026) — climate speed bonus 16% instead of 20%, three-tier income bonus with family allowance, funding cap €28,000, iSFP bonus only from €30,000 minimum investment. The figures in this article reflect the new rules. All details on the BEG reform →
What Is the BEG?
The Federal Subsidy for Efficient Buildings (BEG) is the German government's central funding program for energy-efficient renovations and new construction. It consolidates the previous KfW and BAFA programs under one roof and is divided into three sub-programs:
BEG EM — Individual Measures
Grants for individual renovation measures such as insulation, windows, heating replacement, or building systems. Administered by: BAFA (grants) and KfW (heating replacement).
BEG WG — Residential Buildings
Low-interest KfW loans with repayment subsidies for renovation to an efficiency house standard or new construction. Administered by: KfW.
BEG NWG — Non-Residential Buildings
Similar to BEG WG, but for commercial, office, and public buildings. Administered by: KfW.
BAFA Grants for Energy Consulting
Energy consulting for residential buildings (EBW) is subsidized by BAFA at 50% of consulting costs. The maximum grants are:
Single and Two-Family Houses
Up to €650 grant (50% of eligible costs of max. €1,300). Includes iSFP creation.
Multi-Family Buildings (3+ Units)
Up to €850 grant (50% of eligible costs of max. €1,700). Includes iSFP creation. Homeowner associations (WEG) receive an additional one-time bonus of €250.
The typical consultant fee for a single-family home is €1,500–2,000. After the BAFA subsidy, your out-of-pocket cost is approx. €850–1,350. Requirement: The consultation must be carried out by an energy efficiency expert listed with dena.
Individual Measures — Building Envelope & Systems
For measures on the building envelope (insulation, windows, doors) and building systems (ventilation, heating optimization), BAFA grants are available at the following rates:
| Measure | Base Rate | With iSFP Bonus |
|---|---|---|
| Insulation (wall, roof, floor) | 15 % | 20 % |
| Windows & exterior doors | 15 % | 20 % |
| Building systems (ventilation) | 15 % | 20 % |
| Heating optimization | 15 % | 20 % |
Eligible costs are capped at €30,000 per residential unit (€60,000 with iSFP). This results in a maximum grant of €12,000 per unit for individual measures with the iSFP bonus.
Heating Replacement Subsidies (KfW)
Heating replacement has been funded through KfW since 2024. For climate-friendly heating systems like heat pumps, biomass boilers, or connections to heating networks, there are tiered subsidies:
Base Subsidy
30 %For all homeowners installing a climate-friendly heating system (heat pump, biomass, solar thermal, heating network connection, fuel cell).
Climate Speed Bonus
+16 %Additional bonus for owner-occupiers who replace a functioning fossil heating system (oil, gas, night storage) or a biomass boiler at least 20 years old. Since the BEG reform of July 21, 2026: 16% instead of 20%. The bonus drops by 4 percentage points every six months from February 1, 2027, and expires from August 1, 2028.
Income Bonus
up to +40%For owner-occupiers, in three tiers since the BEG reform of July 21, 2026: 40% for taxable household income up to €30,000, 30% up to €40,000, 10% up to €50,000. New family allowance: minor children in the household reduce the applicable income by a one-time €10,000. The relevant figures are the income tax assessments of the second and third year before application. ⏳ Important: KfW expects to accept these proof documents only from January 2027 — the payout is delayed accordingly.
Maximum Subsidy
up to 80%Base subsidy (30%) + Climate speed bonus (16%) + Income bonus (up to 40%) — capped at 70%, or 80% for an applicable income up to €30,000. Since the BEG reform, eligible costs are capped at €28,000 for the first residential unit (maximum €22,400 grant).
For heat pumps using natural refrigerants (e.g. propane R290) or geothermal/groundwater/wastewater as heat source, there is an additional 5% efficiency bonus.
KfW Loans for Efficiency House Renovation
Those who carry out a comprehensive renovation to achieve an efficiency house level can apply for low-interest KfW loans with repayment subsidies (BEG WG — Loan 261):
Loan Amount
Up to €150,000 per residential unit (with renewable energy class, otherwise €120,000). The loan covers the total eligible investment costs.
Repayment Subsidies
Depending on the efficiency house level achieved, there is a repayment subsidy of 5% (EH 85) to 45% (EH 40). This means: Part of the loan does not need to be repaid.
| Efficiency Level | Repayment Subsidy | Max. Subsidy |
|---|---|---|
| EH 40 | 45 % | 67.500 € |
| EH 55 | 20 % | 30.000 € |
| EH 70 | 10 % | 15.000 € |
| EH 85 | 5 % | 7.500 € |
* Max. subsidy based on €150,000 loan amount (RE class). With Worst Performing Building (WPB) bonus: +10%. BEG reform note: For applications from July 21, 2026, repayment subsidies drop by 10% across the board; EH 85 EE and EH 70 EE no longer receive repayment subsidies, but interest rate reductions remain.
iSFP Bonus: +5% on Everything
The individual renovation roadmap (iSFP) is more than just a consulting document — it brings real money. Those who implement individual measures recommended in a current iSFP automatically receive 5 percentage points more funding. Note: Since the BEG reform, for applications from July 21, 2026 the bonus only applies above an eligible minimum investment volume of €30,000.
How the iSFP Pays Off
• Base rate for individual measure: 15% → with iSFP: 20%
• Eligible costs increase from €30,000 to €60,000 per unit
• Max. grant per unit: without iSFP €4,500 → with iSFP €12,000
Tip: The cost of the iSFP itself is also subsidized at 50% (see above). So an iSFP is almost always worth it.
How to Apply
⚠️ Most important rule: First sign a contract with a suspensive or resolutory condition, then submit the funding application. A contract without a protective clause counts as project start — subsidy exclusion!
Energy Consulting
Get advice from a dena-listed energy consultant and have an iSFP created if applicable.
Get Quote & Contract with Protective Clause
Get quotes from contractors. For heating replacement (KfW): Sign a contract with a suspensive or resolutory condition — the contract only takes effect upon funding approval. Without the clause, the contract counts as project start!
Submit Application
Building envelope measures: online at BAFA. Heating replacement: online at KfW (grant 458 via "Meine KfW"). Efficiency house renovation: KfW loan through your bank.
Wait for Approval
Only after receiving the grant commitment may implementation begin. Contracts with suspensive conditions now take effect.
Implementation & Verification
After completing the work, submit the verification documents. The energy consultant confirms proper implementation.
Note: Subsidy rates and conditions are subject to change. The figures listed here reflect the status as of July 2026, following the BEG reform of July 21, 2026. We recommend individual consultation for your specific project. This article does not constitute legally binding advice.
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