New federal funding targets renovation of old buildings

The Federal Government has reorganised the promotion of energy efficiency in buildings. The focus of the funding is energy-efficient refurbishment with the aim of ensuring that as many people as possible benefit from the funding programme. Energy guzzlers such as old windows, doors and gas heaters are to be replaced, flats renovated and energy costs saved.

The new regulation was implemented in record time - adopted on 26 July 2022, announced on 27 July 2022 and entered into force on 28 July. In future, applications for funding for complete refurbishments will only be submitted to the state development bank KfW. Applications for individual measures, on the other hand, must be submitted to the Federal Office of Economics and Export Control (BAFA). For individual measures in refurbishment, such as window replacement, the new funding conditions apply from 15 August 2022. New construction funding will be redesigned in a later step for the year 2023.

The background to the reform of building subsidies is the high prices resulting from the Russian war of aggression on Ukraine, the tense energy supply situation and the escalation of the climate crisis. "Using less energy is the cheapest and most efficient contribution to more independence and climate protection, and helps to save on energy costs," said Habeck, the Federal Minister for Economic Affairs and Climate Protection.

The vast majority of people live in older houses. Renovating now, replacing windows, throwing out the gas heating - this helps to save costs and goes hand in hand with climate protection: the effect for energy saving and climate protection is around 4.5 times higher with energy-efficient building renovation than with new construction.

In order for as many people as possible to benefit from the renovation subsidy, the subsidies for renovation were increased, while the subsidy rates were slightly reduced. In view of the changing interest rate environment, there is a switch to low-interest loans and repayment subsidies for complete renovations.

You can find out which individual refurbishment measures are funded and how much the grants are at www.bafa.de

(Photo: © Alexa's photos, Pixabay)