Factsheet for measure
DE-2021-1/3932
– measures in Germany
Adjustments to federal funding for efficient buildings (BEG) for energy-efficient renovation measures
Anpassungen bei der BEG-Förderung für energetische Sanierungsmaßnahmen
Background information
Federal funding for efficient buildings (BEG) was introduced to reduce energy consumption in the building sector and achieve the German government's climate targets. It is regulated by the guidelines of the Federal Ministry for Economic Affairs and Climate Protection (BMWK). The legal basis is provided by
the Energy Saving Act (EnEG) and the Building Energy Act (GEG) as the legal basis for funding programs.
Content of measure
Federal funding for efficient buildings (BEG) is aimed at owners of residential and non-residential buildings, municipalities, companies, and associations that want to renovate their buildings to make them more energy efficient or construct new buildings. Measures eligible for funding include work on the building envelope (e.g., insulation of the roof, facade, or basement), replacement of heating systems, optimization of existing systems, use of renewable energies such as heat pumps, and efficient system technology. As a rule, the involvement of an energy efficiency expert and compliance with minimum technical standards are required.
As part of the BEG reform from 2022/23, the funding has been realigned: the focus is now clearly on renovation funding, while at the same time maintaining access for many applicants. In order to ensure this despite tight budgetary resources, the funding rates have been moderately reduced by 5–10 percentage points. For individual measures, they remain at up to 20% for insulation measures and up to 40% for heat pumps (maximum eligible costs: €60,000 per residential unit). For complete renovations through KfW, up to 25% is available for renovation to Efficiency House 85 standard and up to 45% for Efficiency House 40 standard, with a maximum of €150,000 in eligible costs per residential unit. Another new feature is the greater focus on low-interest loans with repayment subsidies, while subsidies for complete renovations are now only granted to a limited extent. Overall, the federal government continues to provide around €13-14 billion annually for building subsidies through the Climate and Transformation Fund
Use of measure
In the 2023 funding year, the number of funding cases, gross investment volume, and estimated GHG reduction have fallen significantly compared to 2022. The main reasons for this are the lower funding rates for individual measures (e.g., insulation or heating replacement) and the discontinuation of new construction funding for residential and non-residential buildings. 2022 was also an exceptional year with pull-forward effects before the expiry of individual funding measures. From 2023 onwards, only renovations will be eligible for funding. Although this will lead to lower overall economic value creation effects than in new construction, it will result in higher specific GHG savings.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Applies to all businesses
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Applies to all citizens
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Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
No involvement of social partners. Most of those consulted were environmental organizations and representatives of various energy industry associations.
Views and reactions
No information available.
Sectors and occupations
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This case is sector-specific
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Economic area
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Sector (NACE level 2)
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L - Real Estate Activities
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L68 Real estate activities
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This case is not occupation-specific.
Sources
