Federal Subsidy for Efficient Buildings (BEG) by KfW

The Federal Subsidy for Efficient Buildings (BEG) operated by the German development bank KfW is a tool derivated from the Climate Action Programme 2030 aiming to promote building renovation across the country. The BEG combines existing programs to promote energy efficiency and renewable energies in the building sector and supports, among other things, the use of new heating systems, the optimization of existing heating systems, measures on the building envelope and the use of optimized system technology.

The BEG consists of three sub-programs:

1. Federal funding for efficient buildings - residential buildings ( BEG WG)
2. Federal funding for efficient buildings - non-residential buildings ( BEG NWG)
3. Federal funding for efficient buildings - individual measures ( BEG EM)

The essentials of this programme are the following:

• Promotional loan from 0.64% (Annual percentage rate for renovation, new construction and purchase).
• Up to EUR 150 000 credit per residential unit for an efficient house 
• Up to EUR 60 000 credit per residential unit for individual measures
• Pay back less: between 15% and 50% repayment bonus 
• Additional funding possible, e.g. B. for construction supervision

The BEG WG and BEG NWG (subsidy and loan variants) as well as the BEG EM in the loan variant have been available for implementation by KfW since July 1, 2021. From 2023, funding is to be provided for each funding event either as a direct investment grant from BAFA or as a low-interest promotional loan with a repayment grant from KfW. All measures on buildings that improve energy efficiency are eligible for funding.

In February 2022, Federal Ministries for Economics and Climate Protection, for Housing, Urban Development and Construction, and Finance agreed on a joint approach to approve all eligible old applications received by the application stop on January 24th, 2022. This involved around 24 000 applications.

In April 2022, the Federal Subsidy for Efficient Buildings (BEG) started again. A budget of EUR 1 billion was available for the promotion of new construction. 

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