01.03.2024
Source: Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft
The amended funding guidelines for the BEG EM were published in the Federal Gazette on 29.12.2023, just in time for the new Building Energy Act to come into force. The two sub-areas of the BEG for promoting the renovation of residential buildings (WG) and non-residential buildings (NWG) into efficient buildings remain unchanged.
In the course of the amendment, there was a reorganization of responsibilities between KfW and BAFA in the area of grant funding. BAFA remains responsible for the areas of efficiency measures for the building envelope, systems engineering (except heating) and the construction, conversion and extension of building networks. All other heat generation systems and connections to building and heating networks have been transferred to the KfW. For all funding areas, a cumulative loan option is offered via KfW in addition to funding by means of direct grants.
Eligibility to apply is broadly defined and applies to all investors, e.g. companies and local authorities as well as private individuals.
New is the requirement to submit a supply or service contract relating to the object of the promotion at the time of application. This must be concluded subject to either a condition subsequent or a condition precedent with regard to the granting of a funding approval, as the conclusion of the contract would otherwise constitute the start of a project that is detrimental to the funding.
For individual measures on the building envelope (e.g. insulation of exterior walls, replacement/installation of doors/windows), systems engineering (e.g. ventilation systems, interior lighting) and for measures to improve system efficiency, the uniform basic funding amounts to 15% of the eligible costs. In addition, a bonus of 5% is granted if an individual renovation roadmap (iSFP) is available.
The following higher funding rates apply for heating replacement funding:
- Uniform basic funding for all applicant groups amounting to 30% of the eligible costs
- An efficiency bonus for heat pumps of 5%
- A flat-rate emissions reduction supplement for biomass heating systems amounting to EUR 2.500
- A climate speed bonus for owner-occupiers of 20% until 31.12.2028 and subsequent degression and
- An income-related bonus for owner-occupiers of 30%
However, the heating replacement subsidy is capped at a maximum of 70% of the eligible costs when the bonuses are cumulated.
In the area of heating subsidies, it has been possible for private applicants (owner-occupiers) to submit applications to KfW since 27.02.2024. There are plans to gradually open the application portal for all other applicant groups.
As a transitional arrangement, eligible applicants have been able to commission and implement eligible projects for the replacement of heating systems (with the exception of the construction, conversion and extension of a building network) prior to submitting an application since the publication of the new guideline on 29.12.2023. The funding application for the heating replacement must be submitted by 30.11.2024 if the project starts between the date of publication on 29.12.2023 and 31.08.2024.
A continuous application is possible for all other projects and therefore no transitional regulations apply.
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