Federal funding for efficient buildings (BEG)

The new funding conditions for the individual measures of the Federal Funding for Efficient Buildings (BEG) apply from 15 August 2022.

On 27 July 2022, the Federal Ministry for Economic Affairs and Climate Action (BMWK) presented a reform of the Federal Funding for Efficient Buildings (BEG) in order to focus the funding even more strongly on renewable energies and independence from fossil fuels. The adjusted funding conditions for the individual measures of the BEG have been valid for applications to the Federal Office of Economics and Export Control (BAFA) since 15 August. Individual measures are single steps in the energy-efficient refurbishment of buildings, such as the replacement of windows, doors or heat generators.

A significant innovation is that the promotion of gas-consuming systems has been abolished. Specifically, these are gas condensing boilers ("Renewable-Ready"), gas hybrid boilers and gas-powered heat pumps. Instead, there is a heating system exchange bonus of 10 percent for heating systems that are operated with fossil fuels.

The heating system replacement bonus of 10 percent is introduced in addition to the regular subsidy rate. In the case of these systems, climate protection can be particularly strengthened through a replacement with more energy efficiency and high energy savings.

The following criteria and conditions apply to this heating system replacement bonus:

  • A bonus of 10 percentage points is granted for the replacement of functioning oil, coal and night storage heatings.
  • A bonus of 10 percentage points is granted for the replacement of functioning gas heating systems if they were commissioned at least 20 years ago at the time of application. For gas single-storey heatings, the bonus is granted regardless of the date of commissioning.
  • After replacement, the building may no longer be heated with fossil fuels in or near the building.
  • The bonus does not apply to solar collector systems or the construction, conversion or extension of a building network.

Another significant change is that the subsidy rates have been adjusted overall. They are somewhat lower, but remain at a high level and thus enable attractive funding for a broad group of applicants.

Further adjustments concern, for example

  • the so-called iSFP bonus for individual renovation roadmaps, which is now only granted for measures on the building envelope, systems technology and heating optimisation,
  • and the heat pump bonus, which provides an additional 5 percent subsidy for particularly efficient heat pump systems.

Overview of the subsidy rates for various heating systems

Further information on the BEG and other funding opportunities can be found here:  www.energiewechsel.de/beg

All information on the application procedure and leaflets can be found here:  www.bafa.de/beg

Tax incentives

Since 2020, it has been possible to receive tax incentives for expenditures on energy modernisation in owner-occupied residential buildings that are at least 10 years old. The measures promoted via the BEG EM are eligible for funding. In addition to the heating systems mentioned under point 2, these include the replacement and installation of a ventilation system, the installation of digital systems for optimising energetic operation and consumption, the optimisation of existing heating systems and measures on the building envelope. Homeowners can deduct 20 % of the investment costs from their tax liability spread over three years. The renovation measures are carried out by specialist companies, which document the correct implementation of the measure in a specialist company certificate and issue an invoice. Both documents are then attached to the tax return. Simultaneous claiming of the tax subsidy and the subsidy via the BEG EM is not possible (prohibition of cumulation).