The German state gives citizens lavish financial aid for the purchase and renovation of a property. This is done with the BEG (Federal Funding for Efficient Buildings). If you want to use the programs, you have to meet certain requirements. What to consider.

The BEG (Federal Funding for Efficient Buildings) contains three sub-programs:

Two state institutions are responsible for funding under the BEG:

KfW provides funding for both new buildings and existing properties.

There are several forms of KfW assistance

new buildings

Funded projects:

The following applies to point three: Interested parties receive funding “if your property achieves efficiency house level 40 with a sustainability class”, as KfW emphasizes.

KfW has set up programs for the individual measures.

This is where the program 261 called “residential building – credit” comes into play. The funding offers “low interest rates and a repayment bonus” that does not have to be repaid, as KfW advertises. Below is a look at the details of program 261 (as of 11/16/2022). The conditions mentioned there essentially also apply to other KfW funding programs.

Program 261 at a glance

The program encourages

On the other hand, debt rescheduling of existing loans and follow-up financing of projects that have already been started or completed are not funded.

Those interested in funding can choose between two forms of funding:

With an annuity loan, customers only pay interest in the first few years. This is the one grace period. This is followed by phase two, in which interest and principal are due. However, the monthly amount remains the same.

KfW grants aid from program 261 with three different interest rates. The following applies to all three variants: The interest rate is fixed for ten years.

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In addition to the annuity loan, program 261 is also available in the “final loan” variant. KfW customers only pay back the interest during the entire term. At the end of the term, the entire loan amount is due in one sum.

The effective annual interest rate is 1.77 percent p.a., the term and fixed interest rate are four to ten years.

The maximum loan amount for the efficiency house level 40 with sustainability class is 120,000 euros per residential unit. Customers receive five percent of this as a repayment bonus, up to a maximum of 6,000 euros. The loan to be repaid decreases by this amount.

The maximum loan amount increases to EUR 150,000 per residential unit if the property also meets the criteria for a renewable energy class.

This happens, for example, when a new heating system based on renewable energies is installed as part of the refurbishment into an efficiency house – and this covers at least 55 percent of the building’s energy requirements.

The maximum repayment subsidy is 37,500 euros per residential unit. The following applies: The higher the efficiency house level of the property after the renovation, the higher the repayment subsidy.

For example, if a customer has chosen program 261, follow these steps

If you want to use the 261 program, you have to hire an energy efficiency expert at the beginning

According to KfW, such an expert ensures that the measures lead to the desired result. For this construction support, there is also help amounting to 50 percent of the costs. Important: Only those energy efficiency experts who are included in the relevant federal list of experts at the German Energy Agency (dena) are permitted.

Attention: KfW makes it clear that “the funding is subject to the availability of budgetary funds”. This means that if the funds provided are exhausted, applicants will get nothing.

Subsidy loan for electricity and heat, from 3.80 percent effective annual interest

Subsidy for innovative energy generation, up to 34,300 euros per fuel cell

The programs 261 and 270 mentioned are also available for existing properties.

Up to 50,000 euros credit, regardless of age

Free advice: KfW answers questions about all the above-mentioned help on the free service number Tel. 0800 539 9002, from Monday to Friday: from 8 a.m. to 6 p.m.

BAFA (Federal Office of Economics and Export Control) oversees the EM area of ​​federal funding for efficient buildings (BEG).

As part of the BEG EM, BAFA has been supporting the following individual measures with the following grants since 2021:

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