Overview of the new government funding program for heating systems

To achieve its 2030 CO2 emission targets, the German government initiated a series of changes to its energy subsidy program for 2020. Homeowners who replace their old heating system with a new, energy-efficient model can count on generous grants. It is therefore worth taking a look at the funding program. The following is new as of 2020.

The choice of heating system determines the amount of funding

Since January 2020, the purchase of energy-efficient heating systems has been uniformly subsidized. Percentage subsidy rates apply here. Their amount depends on the type of heating systems property owners install in their houses. As a general rule, higher subsidy rates are paid for systems with a better climate footprint. However, oil heating systems are explicitly excluded from this. If an old oil heating system in a house is merely replaced by a newer one, the state will no longer pay a subsidy from now on.

What do the funding figures look like in concrete terms?

Homeowners who equip their houses with a modern gas condensing heating system can receive a reimbursement of up to 20 % of the eligible costs. Those who instead purchase solar thermal systems or gas hybrid heating systems for their properties can expect up to 30 % in funding. Biomass systems, renewable energy hybrid heating systems, and efficient heat pumps are in the highest funding tier. If such a system is installed in a house, funding of up to 35 % is provided.

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KfW can also continue to help with financing

While Bafa has taken over the direct funding program from KfW, the state-owned promotional bank can still help homeowners finance their new heating systems in other ways. Under the name „Energy-Efficient Renovation – Supplementary Loan from KfW,“ the bank offers a subsidized loan with a current annual interest rate of 0.78 %. This credit applies specifically to new heating systems. If the entire property undergoes a renovation resulting in a higher energy standard, KfW will continue to grant its own subsidies.

What other funding opportunities are available?

There are a number of programs for promoting more energy-efficient houses. These are often local or regional funding programs. The CO2Online portal provides information on which subsidies are available in your region. The hiring of an energy consultant can also be subsidized. Furthermore, replacing an old heating system can also pay off from a tax perspective. There is the option of deducting the energy-efficient renovation of real estate from your taxes. The purchase of an energy-saving heating system falls under this regulation. Overall, up to 20 % can be claimed against taxes over a period of three years. However, this only applies to houses for which no funding from the Bafa has been applied for. One must therefore choose between tax relief and financial support.

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