Federal Funding – Climate-Friendly New Construction in the Low-Price Segment – Residential Buildings

The federal funding program "Climate-Friendly New Construction in the Low-Price Segment – Residential Buildings" supports climate- and space-efficient new construction projects with a low-interest loan of up to €100,000 per residential unit. The term can be up to 35 years, with an interest rate fixed for up to 10 years, provided that 100% of the loan amount is fully disbursed. Eligible costs include construction and acquisition costs, incidental acquisition costs, planning and construction supervision costs, as well as life cycle analysis and life cycle costs. Participants – ranging from private individuals to companies and public institutions – must demonstrate that the construction meets the Efficiency House Standard 55, complies with greenhouse gas emission limits throughout the building's life cycle, and does not use fossil energy or biomass heat generators. An independent energy efficiency expert prepares the required confirmation for the application (BzA) and conducts the life cycle analysis.

Applications can be submitted at any time until funds are exhausted and must be made through a KfW financing partner. Required documents include the confirmation for the application, the life cycle analysis, the KfW information sheet 296, and the completed application form. Exclusions apply to refinancing of existing loans, additional financing for already commenced projects, or the purchase of land. Selection criteria include compliance with technical minimum requirements, verifiable sustainability aspects (life cycle CO₂), and space efficiency. Through this funding, the federal government contributes to the implementation of climate-friendly and sustainable residential buildings in the low-price segment while simultaneously increasing energy efficiency in housing construction.