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Posted on | 09.08.2026

Time is running out: funding is being cut

Changes to BEG funding: those who carry out refurbishments now can secure even more funding. Funding for climate-friendly heating systems and energy-efficient refurbishments is being adjusted – and will be reduced in the future. Anyone planning a refurbishment should therefore not delay unnecessarily.

New eligibility criteria for the Federal Scheme for Energy-Efficient Buildings (BEG)have been in force since 21 July 2026. The grant for the installation of a climate-friendly heating system remains, in principle, 30 per cent of the eligible costs. For owner-occupiers, additional grant contributions may apply depending on household income.

However, the funding amount will be gradually reduced in future: the maximum funding amount for the first residential unit is currently 28,000 euros. From 1 February 2027, this maximum amount will be reduced by 750 euros for the first time and will subsequently be further reduced every six months.

Further information is available in our grant check or directly from KfW.

Generated by AI: The image is an infographic produced by KfW Bank explaining the new conditions for funding heating systems in residential buildings. It provides information on who is eligible for funding, the amount of funding available and eligible heating technologies.
Die Grafik zeigt neue Bedingungen zur Förderung. © KfW, Stand 21.07.2026
Generated by AI: The image is an infographic produced by KfW Bank explaining the new conditions for funding heating systems in residential buildings. It provides information on who is eligible for funding, the amount of funding available and eligible heating technologies.
Die Grafik zeigt neue Bedingungen zur Förderung. © KfW, Stand 21.07.2026

Why a heat pump is a better value for money than a gas heating system, even if the initial cost is higher, is explained in Heating Myth 6: “A heat pump is always very expensive.” .

The figure shows a comparison of the total costs of heat pumps and gas heating systems over a period of 20 years. The main focus is on illustrating the payback period and the potential savings after 20 years, with the heat pump
Kostenvergleich: Trotz höherer Anschaffungskosten ist eine Wärmepumpe langfristig günstiger als eine Gasheizung.© Landeshauptstadt Dresden
The figure shows a comparison of the total costs of heat pumps and gas heating systems over a period of 20 years. The main focus is on illustrating the payback period and the potential savings after 20 years, with the heat pump
Kostenvergleich: Trotz höherer Anschaffungskosten ist eine Wärmepumpe langfristig günstiger als eine Gasheizung.© Landeshauptstadt Dresden