Subsidy program for heating replacement: Expert explains how homeowners benefit from the state

Subsidy program for heating replacement: Expert explains how homeowners benefit from the state

According to a report by www.bild.de,

Heating replacement will soon be subsidized by the state to support the replacement of old fossil heating systems with renewable energies. The federal government's funding program, which begins on December 29, 2023, offers financial support of up to 70 percent of the costs of replacing the heating system and other energy-related renovation measures. Homeowners can apply for funding from the Kreditanstalt für Wiederaufbau (KfW) until November 30, 2024.

The funding program provides a basic funding of 30 percent for every eligible heating system, with heat pumps with natural refrigerants or geothermal heat pumps even receiving 35 percent. In addition, self-occupying homeowners will receive a bonus of 20 percent until 2028 and there is a hardship regulation for low-income households. The maximum funding amount is 70 percent of the investment costs, but federal funding can also be combined with regional and municipal funding.

The application for funding can be submitted no earlier than February 27, 2024, and it is important to comply with the funding conditions in order to receive the grant. In addition, other renovation measures such as insulation or heating optimization can continue to be subsidized by the state.

Overall, the funding program offers attractive financial incentives for homeowners to switch to renewable energies and carry out energy renovation measures. This could have a long-term impact on the real estate market, as energy efficient properties have higher desirability and market value.