Anyone who wants to switch to more climate-friendly heating will receive money from the state. The state development bank will draw up an initial balance sheet after 100 days.
The state development bank KfW is expecting increasing demand for funding to replace old gas and oil heating systems with more climate-friendly alternatives. “We are only in the second phase. Our figures show that the funding is well received,” said Katharina Herrmann, KfW board member responsible for domestic funding, in Frankfurt am Main.
By the end of May (31 May), KfW had approved around 34,000 grant applications with a total volume of 507 million euros. Heat pumps were particularly in demand, accounting for two thirds of all new systems, biomass heating systems accounted for 22 percent, followed by solar thermal energy. Heating subsidies are an important component of the energy transition in the building sector, which causes around a third of CO2 emissions, said Herrmann.
Since February 27, owners of existing single-family homes who live in them themselves have been able to apply for government funding to replace old gas and oil heating systems with more climate-friendly alternatives. Since May 28, this also applies to private owners of multi-family homes – i.e. landlords – as well as homeowners’ associations with central heating, for example.
With the second stage, the number of applications per week doubled, reported Herrmann. In August, private landlords of single-family homes and owners of homeowners’ associations who want to replace the heating in their own homes will start. Municipalities and companies can also submit applications.
Maximum 70 percent of funding possible
A maximum of 70 percent of funding is possible – depending on the requirements. 30 percent is provided for each building, whether residential or commercial. There are also various bonuses that can be combined. These include an income bonus and a speed bonus of 20 percent until 2028 for the early replacement of old gas and oil heating systems as well as night storage heaters and old biomass heating systems for owner-occupiers. There is an efficiency bonus of 5 percent for heat pumps that use water, soil or wastewater as a heat source or use a natural coolant.
Homeowners who have received approval from KfW to replace their heating system can also apply for a low-interest KfW development loan from an institution – usually their own bank.
“We consider the funding available to be sufficient,” said Herrmann. According to the Federal Ministry of Economics, around 16 billion euros are earmarked for the current year for federal funding for efficient buildings (BEG), which also includes other renovation measures such as insulating roofs or replacing windows.
Source: Stern
