Increased KfW Funding for Homebuyers and Property Owners

The funding landscape for energy-efficient properties has evolved significantly since 2020. The KfW funding programmes that existed at the time have since been replaced by the Federal Funding for Efficient Buildings (BEG) scheme and have been revised several times. Anyone planning an energy-efficient renovation today or looking to purchase a particularly energy-efficient property can still benefit from government support — however, new funding conditions, standards, and funding levels now apply. One thing remains unchanged: investments in the energy efficiency of a property can not only contribute to climate protection but also reduce energy costs in the long term and increase the value of the property.

Although some believe that the German Federal Government is moving too slowly towards achieving its climate protection targets, it is nevertheless making gradual progress. This benefits not only the environment but also homebuyers and property owners. Since 24 January 2020, anyone planning to purchase a recently renovated residential property that meets a KfW Efficiency House standard or to carry out energy-efficient renovations to their own property can benefit from improved funding conditions.

Paying attention to a property’s energy efficiency is therefore now even more worthwhile. Energy-efficient renovations and the purchase of apartments with high energy-saving standards not only benefit the environment but can also reduce service charges and utility costs through lower energy consumption.

KfW has increased both the available loan amounts and the repayment subsidies. Renovating a property to meet a KfW Efficiency House standard, as well as purchasing a residential property that has been renovated to the corresponding standard for the first time, is now rewarded with a repayment subsidy that has been increased by 12.5 percentage points. In addition, the maximum eligible KfW loan amount has risen from €100,000 to €120,000.

The highest repayment subsidy, amounting to 40 percent of the loan, is available for properties that meet the Efficiency House 55 standard. This means that the property uses only 55 percent of the energy consumed by a standard new-build property constructed in accordance with the German Energy Saving Ordinance (EnEV). Anyone taking out a KfW-supported loan of €120,000 to purchase a recently renovated apartment that meets the Efficiency House 55 standard therefore receives a subsidy of €48,000. Existing apartments and houses that meet the Efficiency House 70, 85, 100 or 115 standards, as well as renovations designed to achieve these efficiency levels, are also supported by KfW through repayment subsidies ranging from 25 to 35 percent.

Anyone wishing to improve the energy efficiency of their apartment, for example by installing new windows, without aiming to achieve a KfW Efficiency House standard, has also been eligible for more extensive funding since 24 January. The repayment subsidy for individual energy-efficiency measures has increased by 12.5 percentage points to 20 percent. The maximum loan amount is €50,000.

For the purchase of new-build apartments, KfW has increased repayment subsidies by 10 percentage points. However, stricter standards apply to new-build properties. Funding is only available for KfW Efficiency Houses 40 Plus, with a repayment subsidy of 25 percent, Efficiency Houses 40, with a subsidy of 20 percent, and Efficiency Houses 55, with a subsidy of 15 percent. The maximum loan amount has also increased to €120,000.

To qualify for funding for an energy-efficient renovation, an energy-efficiency expert must be involved. These experts assess whether the planned project is feasible and confirm the effectiveness of the proposed measures to KfW. Approved consultants can be found in the German Energy Agency’s list of experts for federal funding programmes and can be contacted using KfW’s search function for domestic funding programmes. KfW covers 50 percent of the cost of the energy-efficiency expert.

It is also important to note that KfW does not provide loans directly to end customers. KfW funding must instead be applied for through a financing partner. This may be the applicant’s principal bank, another bank or a financing broker.