New federal funding for efficient buildings (BEG EM) - tips for funding measures

New federal funding for efficient buildings (BEG EM) - tips for funding measures

According to a report from www.presseportal.de,

The new federal funding for efficient individual building measures (BEG EM) has been reorganized since January 1, 2024. Higher funding rates of up to 70 percent now apply to heating replacements. Energy improvements to the roof, facade and ceilings will continue to be funded with up to 20 percent.

Federal funding brings with it some important changes. On the one hand, the new funding includes increased funding for heating replacement. For most new heating systems that meet the requirements of the Building Energy Act (GEG), there will be a uniform basic subsidy rate of 30 percent from 2024. There are also various efficiency bonuses and income bonuses that can increase the total funding rate to up to 70 percent.

Another important point is the new low-interest supplementary loan of up to 120,000 euros per residential unit for private owners with a taxable household annual income of up to 90,000 euros. The prerequisite for using the supplementary loan is a grant commitment (heating exchange) from KfW and/or a grant notice (other efficiency measures) from BAFA. The low-interest supplementary loan can be applied for from a financing partner such as your house bank.

The effects on the market and consumers are manifold. With the increased funding rates and the various bonuses, it is expected that more homeowners will decide on energy-saving renovations and replacing old heating systems. This could result in an increase in the need for plumbers and tradespeople. In addition, manufacturers of energy-efficient heating systems and building materials could also benefit from increased demand.

Overall, the new funding appears to be an important step towards climate protection and energy efficiency. The financial incentives will motivate more homeowners to invest in energy-efficient renovations, which could help reduce energy consumption and CO2 emissions in the long term.