KfW: Heating promotion for private individuals starts

On 27 February 2024, KfW will start the application process for owners of owner-occupied single-family homes as part of its heating promotion programme

From 27 February 2024, owners of owner-occupied single-family homes can submit applications to KfW for funding to install climate-friendly heating. The federal government will provide funds from the budget for the investments associated with replacing the heating system, which will be disbursed in the form of grants and supplementary loans via KfW. The aim of the funding is to accelerate the switch to climate-friendly heating systems and thereby reduce greenhouse gas emissions in the heating supply in the building sector.

The start of the application process for the heating subsidy is staggered. Initially, private individuals who are owners of existing owner-occupied single-family homes in Germany are eligible to apply. Other applicant groups will follow in accordance with the funding guideline "Federal funding for efficient buildings - individual measures" presented on 29.12.2023 after it comes into force.
KfW promotional roadmap.

Applying for a subsidy for replacing the heating system

Applications for the promotional subsidy are submitted directly online to KfW via the customer portal My.KfW.de. The prerequisite for this is a concluded supply or service contract with a specialised company for the heating replacement, which must be submitted together with the funding application. Applicants with eligible projects will receive an automated notification that their application has been approved immediately after submitting their application.

For owner-occupied residential buildings with a maximum of one residential unit (single-family home), the maximum amount of eligible costs is EUR 30,000. The basic subsidy for replacing the heating system is 30 % or EUR 9,000.

In addition, you can apply for a:

  • Efficiency bonus of 5 % for heat pumps if the heat source is water, ground or waste water or a natural refrigerant is used,
  • a climate speed bonus of initially 20 % for the replacement of functional oil, coal, gas floor and night storage heating systems or functional gas heating systems or biomass heating systems if they were commissioned at least 20 years ago at the time the application was submitted
  • as well as an income bonus of 30 % for owner-occupiers whose annual taxable household income does not exceed EUR 40,000.

The bonuses are cumulative. However, the total subsidy for replacing heating systems for private owner-occupiers can amount to a maximum of 70 %. In this case, the maximum amount of the subsidy is EUR 21,000. In addition, an emission reduction supplement for biomass heating systems that comply with the emission limit value for dust of 2.5 mg/m3 can be applied for in the amount of EUR 2,500.

You can find the complete KfW press release on the
KfW website

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