Introduction: Funding for climate-friendly heating systems
The KfW 2025 funding program offers private individuals in Germany attractive grants for the purchase and installation of climate-friendly heating systems. The goal of this funding is to accelerate the transition to energy-efficient and environmentally friendly heating systems. Owners can receive grants of up to 70% of eligible costs. Please note, however, that the funding is subject to available budgetary resources and does not constitute a legal entitlement.
What is being funded?
Various heating systems and measures that increase the building's energy efficiency and increase the share of renewable energy are eligible for funding. Eligible measures include:
- Solar thermal systems
- Biomass heating
- Electrically driven heat pumps
- Fuel cell heaters
- Hydrogen-capable heaters
- Innovative heating technology based on renewable energies
- The connection to a building or heating network
In addition, preparatory and restorative measures, such as specialist planning, construction and acoustic planning or hydraulic balancing, can also be covered by the funding.
Who is eligible to apply?
The grants are aimed at private individuals and homeowners' associations (WEGs). Eligible applicants are:
- Owners of owner-occupied or rented single-family homes in Germany
- Owners of existing multi-family houses
- Homeowners' associations that implement measures on common property
An additional application for specific bonus programs such as the income bonus or the climate speed bonus can only be submitted by owner-occupiers.
Grant amount and bonuses
The amount of the grant depends on the eligible costs. The basic grant is typically 30% of the costs. Additional bonuses can increase the grant amount:
- Efficiency bonus: For efficient heat pumps that use water, ground, or wastewater. The prerequisite is the use of natural refrigerants.
- Climate Speed Bonus: Is granted if old heating systems (z.B. oil or coal heating systems) are replaced by new climate-friendly systems.
- Income bonus: This 30% bonus applies to households with an annual income of up to 40,000 euros.
- Emissions reduction surcharge: For biomass plants that have particularly low emission levels.
The maximum grant amount is 70% of the eligible costs. Certain caps apply, z.B30,000 euros for the first residential unit and graduated amounts for additional units.
Requirements for funding
To receive funding, the following conditions must be met:
- The building must already exist and the building application or building notification must be at least five years old.
- The measure must increase the energy efficiency of the building or increase the share of renewable energy.
- The installation of the heating system must be accompanied by an optimization of the heating distribution system (e.g. hydraulic balancing).
Home-made systems, prototypes and used or partially used components are excluded from funding.
The application: steps and requirements
The application for heating subsidies can be submitted via the customer portal “My KfW”.The following steps are necessary before submitting an application:
- Hiring an energy efficiency expert or specialist company.
- Obtaining a confirmation of application (BzA) that documents the eligible costs and technical requirements.
- Conclusion of a supply or service contract with a suspensive or resolutive condition.
- Register in the customer portal “My KfW” and submit the application.
Please note that work may only begin after the grant has been approved. Otherwise, the funding opportunity will expire.
Proof and payment
After successful implementation of the project, the following evidence must be submitted:
- Confirmation after implementation (BnD), issued by the commissioned expert or specialist company
- Invoices for eligible costs
- If applicable, further evidence if bonuses have been applied for
After the documents have been checked, the grant will be paid into the specified account.
Additional information: Deadlines and special regulations
The deadlines for submitting evidence vary depending on the type of property and the project. Generally, the project must be completed within 36 months of approval. Special transitional arrangements apply to applications submitted in 2024/2025. Flood victims can also benefit from goodwill arrangements.
Evidence such as registration or land register extracts do not have a specific age limit, but must prove the condition and ownership at the time of application.
Examples of funded projects
Example 1: Heat pump in a homeowners association
A ten-member homeowners' association is replacing a 25-year-old gas heating system with a central geothermal heat pump. The maximum subsidy for the building is €137,000. The combination of the basic subsidy (30%) and the efficiency bonus (5%) is expected to result in a subsidy of €47,950.
Example 2: Biomass heating for a single-family home
A young couple is replacing an old oil heating system with a log gasifier with a buffer storage tank. The eligible costs are €27,500, including an emissions reduction surcharge of €2,500. The total subsidy is €16,250.
Frequently Asked Questions
The most frequently asked questions relate to supporting documents, contractual requirements, and eligibility. For example, a heating system is considered old 20 years after its initial commissioning. Further details can be clarified via the KfW portal or by calling the service number +49 800 539 9013 (Monday to Friday: 8:00 a.m. to 6:00 p.m.).
Contact and further information
If you have further questions about heating subsidies or need assistance with your application, the following resources are available:
- By email
- By phone at 0800 539 9013
- Online via the customer portal “My KfW”
Take the opportunity to make your home more energy-efficient and climate-friendly – with the KfW 2025 funding.
