According to the German Federal Government (Bundesregierung), revised conditions for federal heating subsidies took effect on 21 July 2026 alongside the new Gebäudemodernisierungsgesetz (Building Modernisation Act), which replaces the previous Gebäudeenergiegesetz (Building Energy Act) and makes heating technology choices more open and flexible for property owners. The government states that subsidies for heating replacement will continue with the necessary adjustments from 21 July 2026, adding that citizens and businesses can rely on this continuity.
Under the revised rules, the so called Klimageschwindigkeitsbonus (climate speed bonus) for early heating replacement is stretched over a longer period and reduced in steps rather than cut abruptly. The income bonus is now staggered by household income: households with a taxable income below 30.000 euros see their bonus rise from 30% to 40%, households with income up to 40.000 euros keep a 30% bonus, and those with income up to 50.000 euros retain a 10% bonus. Families also benefit from a new child supplement, which reduces the income basis used for the bonus calculation by a one off 10.000 euros. At the same time, the maximum eligible project costs used to calculate subsidies are lowered.
The Bundesregierung notes that building renovation and heating replacement reduce energy consumption and support both the economy and climate protection. During the technical transition phase from 9 to 20 July, the state owned development bank KfW (Kreditanstalt für Wiederaufbau) provided information on how applications already submitted would continue to be processed. Guidance on the revised Bundesförderung für effiziente Gebäude (Federal Funding for Efficient Buildings, BEG) is published on the energiewechsel.de portal. The government further states that the law transposes the EU Building Directive (EU) 2024/1275 on the energy performance of buildings into German law, and that it will evaluate the act in 2030 with regard to its contribution to climate targets in the building sector.
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