This overview provides guidance on the most important subsidies* for renovation measures in 2025. Detailed information on individual programs can be obtained from BAFA and KfW.
Table of Contents
System Technology
If you want to install system technology that is not heating technology in existing buildings to improve energy efficiency, you can apply for a subsidy from BAFA. This includes ventilation systems. For power generation systems, KfW offers low-interest loans.
Ventilation / Smart Home
Who subsidizes ventilation systems and measures for implementing smart home functions?
As part of BEG EM (individual measures), BAFA subsidizes system technology to increase energy efficiency.
Which measures are subsidized?
- Installation: Ventilation systems, including heat/cold recovery, digital systems for energy-efficient operation and consumption optimization, or improving grid compatibility.
- Replacement & Optimization: Ventilation systems, including heat/cold recovery.
Not subsidized:
- Self-built systems or systems operated in fewer than four units.
- Used systems or systems containing used components.
What are the requirements for subsidies?
An energy efficiency expert (EEE) must be involved in the application process.
How high is the subsidy for system technology?
- Minimum eligible investment volume: €300 gross
- Base subsidy rate: 15% of eligible expenses
- Maximum eligible expenses for energy measures: €30,000 per residential unit
- iSFP bonus granted or not eligible to apply for the iSFP: increased to 60,000 euros per residential unit
- If the renovation measure is part of an individual renovation roadmap (iSFP): an additional 5% bonus
Power Generation Systems
Who subsidizes my power generation system?
KfW offers a subsidized loan for electricity and heat starting from an effective annual interest rate of 3.76%.
Which measures are subsidized?
KfW subsidizes:
- Systems for using renewable energies:
- Photovoltaic systems
- Power generation from hydropower (up to 20 MW)
- Power generation from wind power
- CHP systems based on solid biomass, biogas, or geothermal energy
- Systems for producing, processing, and feeding biogas into the grid
- Biogas pipelines
- Battery storage systems
- Systems for heat generation based on renewable energies
- Heating/cooling networks and storage systems
- Flexibilization of electricity demand and supply
- Digitalization of the energy transition
- Contracting projects and modernization with increased performance
Not subsidized: Investments in fossil fuels, trust constructions, refinancing and follow-up financing, and self-dealing transactions.
What are the terms?
- Minimum term: 2 years
- Maximum loan amount: €150 million per project
- Up to 100% of investment costs covered
- 100% payout
Building Envelope
If you plan to renovate the building envelope, you can apply for subsidies from BAFA. Additionally, KfW offers a supplementary loan, and a tax bonus is also possible.
Which measures are subsidized?
BAFA subsidizes the following measures:
- Insulation of the building envelope
- Renewal/refurbishment of curtain walls
- Renewal, replacement, and initial installation of windows, exterior doors, and gates
- Summer thermal protection
KfW offers low-interest supplementary loans for these measures.
Who can apply for a loan?
The KfW loan is available to private individuals who:
- Have a subsidy approval from KfW or a grant approval from BAFA.
- Own the property.
- Occupy the property themselves.
- Have an annual household income below €90,000,
and to Investors or contracting parties with a grant approval.
How high is the BAFA subsidy for building envelope renovations?
- Minimum eligible investment volume: €300 gross
- Base subsidy rate: 15% of eligible expenses
- Maximum eligible expenses for energy measures: €30,000 per residential unit
- iSFP bonus granted or not eligible to apply for the iSFP: increased to 60,000 euros per residential unit
- If the renovation measure is part of an individual renovation roadmap (iSFP): additional 5% bonus
Heating
There are subsidies for switching to new heating technology and optimizing existing heating systems.
Heating Technology
Who subsidizes my new heating system?
- KfW supports the installation of climate-friendly heating systems.
- BAFA provides grants for the construction, conversion, or expansion of a building network.
- A 20% tax bonus is available for investments up to €200,000.
Which heating systems are subsidized?
- Solar thermal systems
- Biomass heating systems
- Heat pumps
- Hydrogen-compatible heating systems
- Innovative heating technology
- Building network construction, conversion, or expansion (BAFA)
- Fuel cell heating systems
- Building network connection
- District heating connection
KfW also subsidizes the rental of temporary heating systems until the new system is installed. You can find an overview of available rental heaters here.
Who is eligible and how high is the subsidy?
Here we have summarized all application groups, grants and supplementary loans in a table.
| Applicant Group | Subsidy | Loan |
| Private Individuals | KfW Grant No. 458: Heating subsidy for residential buildings – Subsidy up to 70% of eligible costs – Base subsidy: 30% – Efficiency bonus: 5% – Climate speed bonus: 20% (from 01.01.2029: 17%) – Income-based bonus: 30% – Emission reduction supplement: €2,500 | Supplementary loan in combination with a grant commitment via a financing partner Loan no. 358, 359 Individual measures supplementary loan – residential buildings For already subsidized individual measures for the energy-efficient renovation of residential buildings – Up to 120,000 euros loan per residential unit |
| Companies | KfW grant no. 459: Heating subsidy for companies – residential buildings For the purchase and installation of a new, climate-friendly heating system – Grant of up to 35% of the eligible costs – Basic subsidy: 30 % – Efficiency bonus: 5% – Emission reduction surcharge: 2,500 euros | Supplementary loan in combination with a grant commitment via a financing partner Loan no. 358, 359 Individual measures supplementary loan – residential buildings – Up to 120,000 euros loan per residential unit |
| KfW grant no. 522 Heating subsidy for companies – non-residential buildings For the purchase and installation of a new climate-friendly heating system – Grant of up to 35% of the eligible costs – Basic subsidy: 30% – Efficiency bonus: 5% – Emission reduction surcharge: 2,500 euros | Supplementary loan in combination with a grant commitment via a financing partner. Loan no. 523 Individual measures supplementary loan – non-residential buildings – Up to 5 million euros loan per project | |
| Municipalities | KfW grant no. 422 Heating promotion for municipalities – residential and non-residential buildings – Grant of up to 35% of the eligible costs – Basic subsidy: 30% – Efficiency bonus: 5% – Emission reduction surcharge: 2,500 euros |
Heating Optimization
Who subsidizes heating optimization?
- The contact for funding heating optimization measures is BAFA
- If you have already received a grant from the KfW to replace your heating system, you can also apply for a 358 or 359 loan from KfW to optimize your heating system.
- You can also receive a tax bonus for heating optimization to improve efficiency, but not for heating optimization to reduce emissions.
What measures are eligible for funding?
The funding applies to the following measures and products, among others:
- Hydraulic balancing
- Pump replacement, adjustment of the flow temperature, adjustment of the pump output
- Lowering the return temperature in building networks
- Pipe insulation
- panel heating systems
- Low-temperature radiators
- Heat storage tanks
- Systems based on temperature-based hydraulic balancing methods
- Measurement, control and regulation technology
How much funding is available for heating optimization?
- Minimum investment volume: 300 euros gross
- Subsidy rate: 15% of the eligible costs
- Funding rate for measures to reduce emissions from biomass heating systems: 50% of eligible expenditure
- Maximum limit of eligible expenditure for energy-related measures: 30,000 euros per residential unit
- iSFP bonus granted or not eligible to apply for the iSFP: 60,000 euros per residential unit
- renovation measure is part of a subsidized individual renovation roadmap (iSFP): additional 5% subsidy bonus (except for measures to reduce emissions from biomass heating systems)
Complete Renovation
Renovation to the efficiency house standard is subsidized by KfW and tax bonuses.
Which measures are subsidized?
- Renovation to efficiency house level 85 or better
- Ancillary building costs, restoration costs
- Renovation of listed buildings
- Energy-efficient renovation when buying a newly refurbished property
- Specialist planning and construction supervision by experts
- Specialist acoustic planning by acousticians
- Sustainability certification “Sustainable building quality seal”
- Conversion of non-residential space into residential space
Terms:
- Loan from 2.09% effective annual interest rate
- Up to €150,000 loan per residential unit
- Repayment subsidy between 5% and 45%
Homeownership Purchase
KfW offers support through Loan 308 “Young Buys Old” for families with children purchasing and renovating an existing property.
What costs are subsidized?
- Purchase price of the property
- Modernization and renovation costs
These are the conditions:
- From 0.49% APR for the purchase of an existing residential property that is renovated in an energy-efficient manner after purchase
- Up to 100,000 to 150,000 euros maximum loan amount
- Family with children and single parents
- Income-dependent subsidy
Age-Appropriate Conversion
The nursing care insurance contributes €4,180 for a barrier-free measure. KfW offers Loan 159 for barrier reduction and burglary protection.
What is supported by KfW?
- Conversion to the age-appropriate house standard
- Measures to reduce barriers
- Purchase of a barrier-free converted property
- Conversion of non-residential space, extension or division of living space
- Measures for burglary protection
These are the conditions:
- From 2.51 % effective annual interest rate
- Up to 50,000 euros loan, regardless of age
- For anyone who wants to reduce barriers in their home and protect themselves against burglary
- Also for the purchase of converted living space
Contact Form – Heating Solutions
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Sources:
(March 14, 2025)
*Subsidies from KfW, BAFA, and nursing care insurance are regularly adjusted. We assume no liability for the accuracy, completeness, or timeliness of the provided information.
