KfW funding program: New solution for efficient houses

Status: 01.02.2022 4:20 p.m

After the criticism of the abrupt end to the promotion of efficiency houses, the federal government has agreed on new rules. All applications received by January 24th are still to be processed.

The federal government has agreed on new regulations for subsidies for efficiency houses. According to this, all applications submitted by January 24th should still be considered. The ministries for climate protection, construction and finance have agreed on this. Economics and Climate Protection Minister Robert Habeck (Greens) described the solution as a “generous regulation backwards”. At the same time there is a “stricter regulation forward”.

If eligible, all 24,000 applications submitted by January 24 will be approved. “These applications received will now be checked by KfW according to the previous program criteria. Those eligible for funding will be approved,” the ministries said in a statement. This offers “a good and legally secure solution for all those affected”. From January 24th there will be a “clear cut”.

In the future, building subsidies should be “realigned,” it said. The aim here is to “set up climate-politically ambitious, holistically oriented funding for new buildings, as was also agreed in the coalition agreement”. After that, the Efficiency House 40 program is to be continued, but capped at one billion euros. In addition, it will be limited to the end of the year. Only renovations according to the standard would continue to be funded.

Five billion euros additional costs

The new solution will cost the federal government around five billion euros more than planned. According to Economics Minister Habeck, the money for this comes from the climate and transformation fund. The program had previously been discontinued abruptly because no more money was available for the support program. According to the ministry, the federal government will save between seven and ten billion euros compared to continuing the program.

The Greens politician Habeck admitted that the funding freeze had “triggered resentment and disappointment and anger”: “And that really hurts me for a lot of people.” The stop triggered a storm of protests in view of the already tense construction market. Questions were also raised about projects in social housing and projects in the areas in western Germany affected by the flood in summer 2021. Habeck recently promised that at least some of the applications would still be approved.


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