The state can provide up to 70 percent for a new, more climate-friendly heating system – with an application to KfW. However, oil or gas heating may continue to be operated.
Replacing old with new with state support: As of today, Tuesday, homeowners who want to switch to more climate-friendly heating systems can apply for subsidies from the KfW development bank. Initially, the funding applies to owners of existing single-family homes who live in them themselves. Homeowners can apply for up to 70 percent of eligible costs.
The Traffic Light Coalition’s heating law has been in effect since the beginning of the year. With the reform for more climate protection, the federal government wants to advance the heating transition in the building sector and protect consumers from price jumps for oil and gas if CO2 prices rise in the coming years.
There had been bitter disputes over the heating law for months. In general, functioning heaters can continue to be operated. This also applies if a heater breaks but can still be repaired. Since January 1st, it has been mandatory that new buildings in new development areas must have heating systems with 65 percent renewable energy.
Funding of 30 percent of the investment costs
The prerequisite for KfW grants in existing single-family homes is a “completed delivery or service contract” with a specialist company for heating replacement. There is a basic subsidy of 30 percent of the investment costs for replacing old, fossil heating systems with new heating systems with at least 65 percent renewable energy. These include heat pumps, solar thermal systems or biomass heating systems.
There is an additional efficiency bonus of five percent for heat pumps that use water, soil or wastewater as a heat source or that use a natural refrigerant.
Income and speed bonus
There is also an income bonus of 30 percent of the investment costs. This is available to homeowners who live there themselves with a taxable household annual income of up to 40,000 euros.
There is also a speed bonus of 20 percent of the investment costs as an incentive for quick conversion. The bonus is granted for replacing functional oil, coal, gas or night storage heaters as well as biomass and gas heaters that are more than 20 years old with climate-friendly heating. From 2029 the bonus will decrease continuously.
The bonuses can be combined up to a maximum funding rate of 70 percent. The maximum eligible investment costs for replacing the heating system are 30,000 euros for a single-family home. In this case, the maximum amount for funding is 21,000 euros. A surcharge of 2,500 euros is granted for biomass heating systems if they comply with a certain dust emission limit.
Expansion throughout the year
In addition, homeowners who have a commitment to replace the heating system from KfW have been able to apply for a low-interest KfW development loan from a credit institution since Tuesday – usually their house bank.
Over the course of the year, the funding will be gradually expanded, including to owners of apartment buildings and landlords of single-family homes. Those who are currently unable to submit applications can already start the project. If the project begins by August 31st, the application can be submitted by November 30th.
Grants are available as long as the funding has not been exhausted. This year, the federal government is providing a total of more than six billion euros in grants and low-interest loans for new, more climate-friendly heating systems.
Source: Stern
