After this harsh winter, the topic of building renovation is once again coming into focus. Government subsidies are available for owners who want to invest in new windows, doors or façades.
Even if the multitude of programmes seems confusing, the subsidies follow a clear system: grants, low-interest loans or tax advantages are available for measures relating to the building envelope. New windows and doors as well as insulation of exterior walls and roofs are among the most effective measures for reducing energy consumption.
Accordingly, the basic technical rule for renovations is to ensure that the building envelope and heating technology are well coordinated when they are replaced. As long as unnecessary heat is lost through windows, facades or roofs, investing in a modern heating system will not pay off. In addition to saving energy, a well-insulated building envelope also improves living comfort, for example through more even room temperatures and fewer draughts.
The most important federal subsidy programmes will continue in 2026. These include, in particular, the KfW programmes for climate-friendly new buildings and the Federal Subsidy for Efficient Buildings (BEG) for renovations and individual measures on existing buildings. Special programmes such as "Home Ownership for Families" and "Young People Buy Old" will also remain in place. There will be no changes to the tax incentives for energy efficiency measures under Section 35c of the Income Tax Act (EStG).
For individual measures on the building envelope, the government grants a direct subsidy of 15 per cent of the investment costs. In addition, owners can receive a further five per cent subsidy if they submit an individual renovation roadmap (iSFP) that outlines further measures. The consultant must be listed in the federal government's energy efficiency expert list. Owners who receive a direct subsidy under the BEG for an individual project can apply for a supplementary loan of up to €120,000 for the remaining costs. If the taxable annual income is less than €90,000, the interest rates are particularly favourable.
Photo: © Lecreusois, Pixabay
