Engel & Völkers
  • 5 min read

Energy-efficient renovation

What subsidies are available for your apartment building?

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An energy-efficient renovation is not only a benefit for the environment, but also a worthwhile investment. With the right subsidies, renovations can be implemented at significantly lower cost.

Rising energy costs and the urgent need to reduce CO₂ emissions are placing increasing pressure on property owners. Properties with poor energy performance are particularly being sidelined: often due to rising costs for tenants and landlords, they are harder to sell and continuously lose value. At the same time, demand for energy-efficiently renovated buildings is rising rapidly.

Table of Content

  1. What funding is available?

  2. At The Federal Level: Federal Funding For Efficient Buildings (BEG)

  3. Holistic Renovation And Financing Through KfW

  4. Combination Of Funding And Planning

What funding is available?

In principle, there are funding programs at the federal, state, and municipal levels— a complex system that is often difficult for non-experts to navigate. Experienced energy efficiency experts and ESG management providers can help ensure that the measures planned in a renovation roadmap are optimally supported through the use of funding.

In some cases, grants, low-interest loans, or fixed conditions can be applied for. However, public funding is generally available only in limited amounts, and there is usually no legal entitlement to funding. Applications must be submitted in writing, and in many cases the subsidized measure may only begin once a funding approval notice has been issued.

As part of the energy transition, consultations on the energy-efficient renovation of buildings and the installation of heating systems using renewable energy are also subsidized.

At The Federal Level: Federal Funding For Efficient Buildings (BEG)

The BEG offers a broad range of support for energy-efficient renovations. Since January 1, 2024, the guideline “BEG – Individual Measures” (BEG EM) has been in effect, promoting the targeted implementation of individual measures.

The following measures are the focus of BEG EM:

  • Modernization of the building envelope (e.g., insulation of walls, roofs, or basement ceilings)

  • Replacement of windows and doors

  • Optimization of building services engineering, such as energy-efficient ventilation systems, modern pumps, and pipe insulation (modernization of lighting only for non-residential buildings)

  • Replacement of the heating system, e.g., heat pumps, solar thermal systems, or biomass heating systems

  • Planning and construction supervision, for which up to 50% of the costs can be covered

Grants for heating system replacement are applied for through KfW, while all other grants under BEG EM are administered by BAFA.

Holistic Renovation And Financing Through KfW

For comprehensive modernizations or the complete energy-efficient renovation of a building, owners can make use of funding through the BEG for residential and non-residential buildings. KfW provides low-interest loans and grants for this purpose. Funding particularly supports the energy-related improvement of the building envelope as well as heating systems based on renewable energy. For owners who wish to implement modernizations step by step, additional loans for individual measures are available.

Combination Of Funding And Planning

One of the greatest strengths of the funding programs is their combinability. Grants for individual measures such as window replacement or heating modernization can be combined with low-interest loans for a comprehensive renovation. This results in tailored financing packages that support both smaller and larger projects while maximizing financial benefits. Careful planning is essential, as political decisions can influence the availability and conditions of funding. Early application is therefore necessary. Anyone wishing to ensure that the appropriate funding programs are identified and that applications are submitted successfully should involve professional energy efficiency experts or consultants.

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