KfW Subsidies 2026: All Programs for Renovation
The KfW bank (Kreditanstalt fur Wiederaufbau) is Germany's most important funding institution for energy-efficient building renovation. Through the Federal Funding for Efficient Buildings (BEG), it provides grants and low-interest loans for various renovation measures. In this article, we explain all current programs for 2026.
BEG Individual Measures (BEG EM)
The BEG individual measures program is the most important one for most homeowners. It subsidizes individual energy renovation measures with grants.
Heating Replacement
Heat pumps receive a base subsidy of 30 percent of eligible costs. Additionally, there is the Climate Speed Bonus of 20 percent for replacing a functioning fossil heating system (until 2028, then gradually reduced) and the Income Bonus of 30 percent for households with taxable income below 40,000 euros. Maximum: 70 percent subsidy. Biomass heating systems (pellet, wood chips) receive 20 percent base subsidy plus possible bonuses.
Building Envelope Measures
Facade insulation, roof insulation, basement ceiling insulation, and window replacement each receive 15 percent subsidies. Additionally, there is the iSFP bonus of 5 percent when an individual renovation roadmap is presented. Eligible costs are capped at 60,000 euros per housing unit per measure (with iSFP: 60,000 euros).
Building Technology
Solar thermal systems receive 25 percent subsidies. Ventilation systems with heat recovery receive 15 percent. The maximum of 60,000 euros per housing unit also applies here.
How to Apply for KfW Funding
Step 1: Engage an Energy Consultant
For most measures, energy consulting by a certified energy efficiency expert is required. You can find one in the expert list of the German Energy Agency (dena). The energy consultant prepares a Technical Project Description (TPB) needed for the application.
Step 2: Submit the Application
The application is submitted to BAFA (Federal Office for Economic Affairs and Export Control) for individual measures. Important: the application must be submitted and approved before work begins. Starting work before the application is submitted results in loss of the funding entitlement.
Step 3: Carry Out the Measure
After approval, you can begin the work. The energy consultant accompanies the implementation and prepares the final documentation.
Step 4: Receive the Grant
After completing the measure, submit the evidence to BAFA. The grant is usually paid out within 4 to 8 weeks.
Tax Alternative: Section 35c Income Tax Act
As an alternative to KfW funding, homeowners can deduct energy renovation costs over three years from their taxes. The tax deduction amounts to 20 percent of expenses (maximum 40,000 euros per dwelling). This option is particularly worthwhile when KfW funding cannot be claimed or when income tax liability is high.
Important: KfW funding and tax deduction cannot be combined for the same measure. Check before starting which option is more favorable for you.
Common Mistakes with KfW Funding
1. Applying too late: the application must be received before work begins. Even commissioning a tradesperson can count as starting the project.
2. Missing energy consultation: without a TPB from a certified energy consultant, the application will be rejected.
3. Non-eligible measures: ensure that minimum technical requirements are met (e.g., U-values for windows and insulation).
4. Cannot combine with tax bonus: double funding is excluded.