Overview of Federal Funding for Efficient Heating Networks
This article was written in 2024 and updated in February 2026: Expanding efficient heating networks is a key pillar of Germany´s energy transition. Municipalities investing in heating networks to provide sustainable heating for their residents can benefit from the Federal Funding for Efficient Heating Networks. Other institutions are also eligible to apply.
- Zoya Glushtrom
Table of Contents
Important update (January 2026):
Funding for transformation plans via Module 1 will be discontinued on April 1, 2026. Industrial process heating networks are an exception. Funding for feasibility studies will continue.
What is Funded by the BEW?
The Federal Funding for Efficient Heating Network (BEW) supports both the construction of new heating networks powered by renewable energy and the decarbonization of existing networks. Eligible measures include:
- Transformation plans and feasibility studies (Module 1): These plans and studies should target the heating supply for more than 16 buildings or 100 housing units. Transformation plans outline how to convert existing heating networks to greenhouse-gas-neutral systems by 2045. Feasibility studies evaluate the implementation and economic viability of new heating networks with at least 75 % renewable energy and waste heat.
- Systemic support for new and existing networks (Module 2): The module promotes the construction of new heating networks that will supply more than 16 buildings or 100 residential units and will be powered by at least 75% renewable energies and waste heat. It also supports the transformation of existing infrastructure into greenhouse gas-neutral heating networks. This includes the installation of generation plants, heat distribution, planning, investments in infrastructure, and efficiency and digitization measures. A feasibility study (new construction) or a transformation plan (existing network) is required.
- Individual measures (Module 3): Certain individual measures for existing heating networks are also eligible for funding, such as solar thermal systems and heat pumps, provided they serve more than 16 buildings or 100 housing units.
- Operational cost support (Module 4): This module offers operating cost subsidies for the generation of renewable heat from solar thermal and PVT systems as well as from electric heat pumps that feed into heating networks. The subsidy applies to new and converted heating networks, but only to systems subsidized by BEW.
Who can apply?
The following are eligible to apply:
- Companies
- Local authorities (insofar as they are economically active)
- Municipal
- own enterprises
- Companies
- Special-purpose associations
- Registered associations
- Registered cooperatives
- Contractors (under certain conditions)
How Much Funding is Available?
Funding amounts depend on the specific measures:
- Module 1: Up to 50 % of eligible costs; maximum of 2 million euros
- Module 2: Up to 40 % of eligible costs; maximum of 100 million euros
- Module 3: Up to 40 % of eligible costs; maximum of 100 million euros
- Module 4: max. 100 million euros
The exact amount depends on the data provided by the applicant.
How to Apply
Applications are submitted via BAFA electronic application form.
The following steps are necessary:
- Check your eligibility: Are you a company, an economically active municipality, a municipal enterprise, a special-purpose association, a registered association or cooperative, or a contractor? If so, the subsidy program may be right for you. You can carry out a detailed check using the information sheet.
- Find the right funding module: BEW offers various funding modules depending on whether you are planning, building, or modifying a heating network. You can find more information on this in the previous section.
- Submit your application and wait for your grant notification: Before you start implementing your project, you should wait for the grant notification. You can find more information on this in the information sheet.
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Modul 1
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Modul 2
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Schritt 1
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Antragstellung auf Modul 1
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Schritt 2
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Prüfung der Angaben und Erhalt des Zuwendungsbescheids
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Schritt 3
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Erstellung des Transformationsplans / der Machbarkeitsstudie
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Schritt 4
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Einreichen des Verwendungsnachweises über elektronisches VN-Portal
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Antragstellung für Modul 2
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Schritt 5
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Auszahlung, wenn Voraussetzungen erfüllt sind
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Prüfung der Angaben und Erhalt des Zuwendungsbescheids
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Schritt 6
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Errichtung oder Transformation des Wärmenetzes, jährliche Einreichung von Zwischennachweisen über das VN-Portal
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Schritt 7
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Auszahlung der Förderung für das jeweilige Jahr
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Wärmenetze, die einen längeren Zeitraum benötigen, um erreichtet oder transformiert zu werden (Fall B):
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Modul 1
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Modul 2
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Modul 3
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Modul 4
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Schritt 1
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Antragstellung auf Modul 1
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Schritt 2
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Prüfung der Angaben und Erhalt des Zuwendungsbescheids
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Schritt 3
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Erstellung des Transformationsplans / der Machbarkeitsstudie
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Schritt 4
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Einreichen des Verwendungsnachweises über elektronisches VN-Portal
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Antragstellung 1. Paket Modul 2
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Schritt 5
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Auszahlung, wenn Voraussetzungen erfüllt sind
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Prüfung der Angaben und Erhalt des Zuwendungsbescheids
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Schritt 6
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Realisierung des Pakets
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Schritt 7
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Antragstellung 2. Paket Modul 2
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Beantragung der Betriebskostenförderung für Solarthermieanlagen und Wärmepumpen
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Schritt 8
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Prüfung der Angaben und Erhalt des Zuwendungsbescheids
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Schritt 9
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Realisierung des Pakets
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Schritt 10
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Bestandsnetze: Antrag auf Einzelmaßnahmen
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Beantragung der Betriebskostenförderung für Solarthermieanlagen und Wärmepumpen
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At a Glance – Federal Funding for Efficient Heating Networks
- The program supports the construction of new heating networks with a high share of renewable energy and the decarbonization of existing networks.
- There are four funding modules: transformation plans and feasibility studies (Module 1), systemic support for new and existing networks (Module 2), individual measures (Module 3), and operational cost support (Module 4).
- Eligible applicants include businesses, municipalities, associations, and cooperatives.
- The funding amount depends on the specific module.
- Applications for each module must be submitted separately via the BAFA electronic application form.
Heating Failures During Transition
Building new heating networks presents logistical and infrastructural challenges, which can lead to temporary heating failures for affected households during the transition. Mobile Wärme 24 collaborates closely with municipalities and contractors to provide heating and hot water during the transition phase and address operational issues. Our mobile heating systems are readily available for such scenarios, and our staff is experienced in handling heating network outages and providing temporary mobile heating devices to ensure entire neighborhoods receive the required heating capacity. For more details, see our blog post “Expanding the Heating Network”
Sources:
- Funding Guide 2024
- BAFA Website (02/04/2026)
Disclaimer: The granting of fundings is subject to the availability of budgetary resources. The contents of this page have been compiled with the utmost care. However, we cannot guarantee the accuracy, completeness, or timeliness of the contents. Our website contains links to external websites of third parties over whose content we have no influence. Therefore, we cannot accept any liability for this external content.
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