Federal Funding for Efficient Buildings – Heating Subsidies for Municipalities – Residential and Non-Residential Buildings

The Federal Funding for Efficient Buildings – Heating Promotion for Municipalities is aimed at municipal authorities, their legally dependent municipal enterprises, municipal associations, as well as municipal special-purpose associations and city-states with municipal enterprises. The goal is the modernization and replacement of stationary heating systems in existing residential and non-residential buildings to increase energy efficiency and expand the share of renewable energies. Investment costs for the purchase and installation of new, climate-friendly heating systems (e.g., heat pumps, biomass, solar thermal systems, fuel cell heating systems, or hydrogen-capable devices) as well as expenses for hydraulic balancing, system optimization, planning, and construction supervision are eligible for funding. The funding is provided as a non-repayable grant with a funding rate of 35% of eligible expenses. Additionally, a flat-rate bonus of 2,500 euros can be paid for certain individual measures to reduce emissions. Applications can be submitted at any time since the new guideline came into effect on December 21, 2023. A proper delivery or service contract with a suspensive or resolutive condition must be in place. Subsequently, an approval is granted, the project must be implemented within a 36-month approval period, and proof of use must be submitted.

The KfW Banking Group acts as the administrative implementing agency and processes applications via the customer portal "Meine KfW." For the application, in addition to the specialist contractor declaration or confirmation from an energy efficiency expert, invoices, delivery notes, and proof of municipal status are required. Cities and municipalities benefit from a straightforward procedure that enables them to future-proof their buildings, reduce CO₂ emissions, and lower energy costs in the long term. A fully documented proof of use ensures the disbursement of the grant and provides transparency in public funding.