Building envelope
Individual measures on walls, roof, basement, windows and doors. Funding body: BAFA. Calculated on costs.
Go to sectionFunding for energy-efficient renovation
Which funding applies depends on the planned project. This page assigns the federal programmes and those of IFB Hamburg (Hamburg's state investment and development bank) to four types of project, states the caps and explains how federal and state funding can be combined.
Four types of project, four funding routes
The programmes differ in who runs them, how the funding is calculated and how you apply. One renovation can involve several routes at once, for example when insulation and a heating replacement coincide. In that case two applications are made to two different bodies.
Replacing the heating
Heat pump, connection to a heating network, biomass. Funding body: KfW. Calculated on costs, plus bonuses.
Go to sectionEfficiency House
Renovation of the whole building to an Efficiency House level. Funding body: KfW, as a loan with a repayment grant.
Go to sectionIFB Hamburg
State funding, only for buildings in Hamburg. Separate programmes for the building envelope and for heating.
Go to sectionFederal funding, administered by BAFA
Individual measures on the building envelope
Funding covers insulation of external walls, roof, top floor ceiling and basement ceiling, as well as the replacement of windows and external doors. This falls under BEG individual measures (BEG EM), part of the Federal Funding for Efficient Buildings (BEG), administered by BAFA (Federal Office for Economic Affairs and Export Control). The U-values set in the funding guideline must be met and confirmed by an accredited energy consultant. Besides the construction costs, planning, construction supervision and ancillary work such as scaffolding are eligible.
The basic funding rate is 15 per cent of the eligible costs. If a funded individual renovation roadmap (iSFP) exists that includes the measure, the cap on eligible costs doubles. In addition, a bonus of five percentage points applies to the share of costs above the cap that would apply without a roadmap.
| Residential unit | without iSFP | with iSFP |
|---|---|---|
| first residential unit | €30,000 | €60,000 |
| second to sixth residential unit, each | €15,000 | €30,000 |
| seventh residential unit onwards, each | €8,000 | €15,000 |
For larger buildings the steps add up: an apartment building with twelve residential units reaches a cap of €153,000 without a roadmap and €300,000 with one. These caps apply per building and calendar year, so for larger projects it is worth checking whether to spread the work over two years. For heating, by contrast, the cap applies per building in total, regardless of the period.
The iSFP bonus requires a minimum eligible investment of €30,000 gross. When the measure is carried out, the roadmap may be no more than 15 years old, and it must already exist when you apply. From the first quarter of 2027, insulation measures on particularly inefficient buildings receive a further bonus of five percentage points, which also requires a funded renovation roadmap.
Primary source: BEG EM funding guideline (Förderrichtlinie BEG Einzelmaßnahmen) of 17 July 2026, nos. 8.3.1 and 8.4.2 – Federal Ministry for Economic Affairs and Energy (in German), applications to BAFA.
Federal funding, administered by KfW
Replacing the heating system
Heating funding is separate from funding for the building envelope. You apply to KfW (the German federal development bank), and it has its own staggered caps, which apply per building in total, not per calendar year. Funding covers heat pumps, connection to a heating network or building network (Wärmenetz, Gebäudenetz), solar thermal systems, biomass systems, fuel cells and hydrogen-ready heating. The system must be on BAFA's list of eligible heat generators (Wärmeerzeugerliste).
A requirement is the optimisation of the entire distribution system, including hydraulic balancing (VdZ method B). The system must be sized on the basis of a room-by-room heat load calculation to DIN EN 12831; for heat pumps, a seasonal performance factor (SPF, German: JAZ) of at least 3.0 must be demonstrated.
The basic funding rate is 30 per cent. Bonuses can be added on top, with the total capped at 70 per cent, or at 80 per cent for a taxable annual household income of up to €30,000.
| Residential unit | Cap |
|---|---|
| first residential unit | €28,000 |
| second to sixth residential unit, each | €15,000 |
| seventh residential unit onwards, each | €8,000 |
From 1 February 2027, the cap for the first residential unit falls by €750 every six months until it reaches €22,000 from 1 August 2030. If you are planning the replacement anyway, putting it off reduces the amount of funding.
Bonuses on top of the basic funding
| Bonus | Amount | Condition |
|---|---|---|
| Climate speed bonus (Klimageschwindigkeitsbonus) | up to 16 | Owner-occupiers only, for the owner-occupied unit. Replacement of a working oil, coal, gas floor-unit (Gasetagenheizung) or night storage heater, or of a gas or biomass heater at least 20 years old. The rate falls in steps: 16 points until 31 January 2027, then 12, 8 and 4 points; from 1 August 2028 the bonus no longer applies. |
| Income bonus (Einkommensbonus) | up to 40 | Owner-occupiers only. 40 points up to a taxable annual household income of €30,000, 30 points up to €40,000, 10 points up to €50,000. For each household with at least one child under 18, the income taken into account is reduced once by €10,000. |
| Value creation bonus (Wertschöpfungsbonus) | 15 | From the first quarter of 2027, for heat pumps originating in the European Union. |
From the first quarter of 2027, the basic funding rate for electrically driven heat pumps falls from 30 to 15 per cent. At the same time, funding no longer applies if the building is already connected to a heating network or building network, or is supplied by a renewable heating system, such as a heat pump or biomass heating, that has been in operation since 1 January 2008. If such a system that went into operation before 2008 is replaced, a flat 25 per cent of the costs is eligible. Replacing oil and gas heating is not affected.
The iSFP bonus does not apply to heating. A renovation roadmap is still useful, because it sets the flow temperature and therefore the sizing of the heat generator.
Primary source: BEG EM funding guideline of 17 July 2026, nos. 8.3.1, 8.4.1 and 8.4.4 to 8.4.6 – Federal Ministry for Economic Affairs and Energy (in German), applications to KfW (in German). Eligible systems: BAFA list of eligible heat generators (in German).
Federal funding, administered by KfW
Renovation to an Efficiency House
If the building as a whole is renovated to a defined Efficiency House (Effizienzhaus) level, funding for individual measures is replaced by a loan with a repayment grant from programmes 261 and 262. The level is demonstrated by an energy balance to DIN V 18599 and confirmed by an energy consultant accredited for federal funding. Combining this with funding for individual measures for the same measure is not permitted.
The financial benefit has two components: the repayment grant, which reduces the loan amount, and the interest advantage over bank financing for the duration of the fixed-interest period. Whether this route pays off compared with staggered individual measures depends on the condition of the building, the extent of work that is due anyway and the financing structure. This comparison is part of the consultation and cannot be answered in general terms.
Separately, a supplementary loan (Ergänzungskredit) of up to €120,000 per residential unit is available for individual measures. Owner-occupiers with a taxable annual household income of up to €90,000 receive an additional interest subsidy from federal funds for the owner-occupied unit.
Primary source: terms, Efficiency House levels and repayment grants directly from KfW, programmes 261 and 262 (in German). Supplementary loan: BEG EM funding guideline of 17 July 2026, nos. 8.1 and 8.5.
State funding, Hamburg only
IFB Hamburg: building envelope
For buildings in Hamburg, funding from IFB Hamburg (Investitions- und Förderbank) comes on top of federal funding. Two programmes are available for the building envelope, and they are mutually exclusive. Both require a building permit that is more than twenty years old.
Wärmeschutz im Gebäudebestand (thermal insulation in existing buildings)
This programme funds individual building components with a fixed amount per square metre of renovated component area, regardless of the actual costs. All owners of residential buildings are eligible, including landlords; homeowners' associations (WEG) apply jointly. Funding is capped at €50,000 per residential unit.
If components from several component groups are renovated at the same time, a modernisation bonus increases the funding by 20 per cent for three groups and by 30 per cent for four. This bonus requires that the building has no more than three flats and no more than two residential units are let. Additional funding is available for sustainable insulation materials, for preserving brick facades at €50/m² of facade area, and for airtightness testing at €260 per residential unit.
Hydraulic balancing to VdZ method B is mandatory in this programme. It is funded at 75 per cent of eligible expenditure, up to €3,750 per residential unit, but cannot be combined with other funding.
Klimaschutzprogramm für Mietwohngebäude (Mod A) (climate protection programme for rented residential buildings)
This programme is aimed at rented residential buildings with three or more residential units. Funding is based on the energy level reached by the whole building, calculated per square metre of living space and capped at 130 m² per residential unit.
A coherent overall energy concept is required, with an improvement of at least 20 per cent in primary energy demand, final energy demand and space heating demand. Sustainable insulation materials, the preservation of facades worth protecting and energy quality assurance (Qualitätssicherung Energie) are also eligible.
| Level | Requirement | Grant |
|---|---|---|
| Level 1 | Final energy demand ≤ 90 kWh/m²a | €144.00/m² |
| Level 2 | Final energy demand ≤ 75 kWh/m²a | €206.00/m² |
| Level 3 | IFB Efficiency House 70, existing building | €288.50/m² |
| Level 4 | IFB Efficiency House 55, existing building | €412.00/m² |
| Level 5 | IFB Efficiency House 40, existing building | €484.00/m² |
For homeowners' associations that let their units and for companies, State aid ceilings under the General Block Exemption Regulation (Allgemeine Gruppenfreistellungsverordnung) also apply. They depend on the size of the company and can limit the grant beyond the programme caps. This is checked case by case.
Primary sources: IFB Hamburg, Wärmeschutz im Gebäudebestand (in German) and IFB Hamburg, Klimaschutzprogramm für Mietwohngebäude (Mod A) (in German). All funding guidelines are in the IFB download area (in German).
State funding, Hamburg only
IFB Hamburg: heating funding
Alongside federal heating funding, IFB runs its own heating funding programme (Hamburger Heizungsförderung). It is divided into modules, which are applied for separately.
Renewable heat
Heat pumps including associated work (Umfeldmaßnahmen), solar thermal systems, biomass systems, heat storage and the multiple use of land areas.
Heating network connection
New connection of existing buildings to existing or newly built heating networks and building networks, limited to work on the plot of the connected building.
Service connection pipes
Pipes from the heat distribution network to the heat transfer station, to supply additional buildings.
Building and heating networks in the neighbourhood
Construction, conversion and extension of networks using renewable heat or unavoidable waste heat, supplemented by funded feasibility studies.
As of September 2026, the modules for service connection pipes and for building and heating networks in the neighbourhood are exhausted for the current year; new funds are planned for 2027. Applications already submitted will continue to be processed. Please check the current status before planning.
For heat pumps and geothermal energy, the subsidised IFB energy loan (IFB-Energiedarlehen) can be used instead of the grant. Also note § 17 of the Hamburg Climate Protection Act (Hamburgisches Klimaschutzgesetz) and that the installing company must be entered in the register of craft businesses (Handwerksrolle).
Primary source: IFB Hamburg, Hamburger Heizungsförderung (in German). Applications via the IFB online application portal (eAntragsportal, in German).
Combining funding and the 60 per cent limit
Federal and state funding can be combined (Kumulierung). However, federal funding limits the total of all public funds to 60 per cent of the eligible costs. If this limit is exceeded, the funding is reduced.
In practice this means: if IFB funding on its own already covers a high share of the costs, the remaining scope for federal funding shrinks accordingly. The order of the applications makes no difference, but the way the measures are defined and spread over calendar years does.
Special rules apply to services provided during construction. In the Hamburg programme, hydraulic balancing and airtightness testing cannot be combined with other funding.
The funding calculator (in German) takes this limit into account and shows where the funding would be reduced.
Federal funding and the tax deduction under § 35c of the Income Tax Act (EStG) cannot both be claimed for the same measure. If several different measures are carried out, the two routes can be split between different measures.
Primary source: BEG EM funding guideline of 17 July 2026, no. 8.6 – Federal Ministry for Economic Affairs and Energy (in German).
What I do in the application process
Applications are tied to deadlines and documentation requirements, and breaching them means losing the funding. You submit the application yourself as the applicant; I prepare it, issue the required confirmations and support the process up to the proof of use (Verwendungsnachweis).
- Checking whether the project is eligible and choosing the programme or combination of programmes
- Calculating the expected grants, including the cumulation limit
- Estimating the eligible costs from the quotes received, with an agreed buffer, because the grant cannot be increased afterwards
- Preparing the technical project description and the confirmation for the application (Bestätigung zum Antrag, BzA)
- Close support during the application: you submit the application yourself, I prepare it, check the entries before submission and answer queries from the funding body
- Technical supervision during the works, where the programme requires it
- Proof of use and confirmation after completion (Bestätigung nach Durchführung, BnD)
For all programmes: the application must be submitted before the project starts (Vorhabenbeginn), and signing a supply or service contract already counts as the start of the project. For federal funding, such a contract must also be in place when you apply, concluded subject to the condition precedent or condition subsequent of the funding approval. Planning and consultancy services may be carried out beforehand.
The approval period for grant funding is 36 months. The proof of use must be submitted within six months of completing the project; if this deadline is exceeded by more than six months after the end of the approval period, the entitlement to payment lapses.
Primary source: BEG EM funding guideline of 17 July 2026, nos. 9.2.1, 9.4.1 and 9.5.1. For the Hamburg programmes: IFB information sheet on the start of the measure (in German).
Frequently asked questions
When does the application have to be submitted?
Before the project starts, and signing the supply or service contract counts as the start of the project, not the start of construction. For federal funding, a contract concluded subject to the funding approval must already be in place when you apply. Anyone who has placed an unconditional order with a contractor loses the entitlement for that measure.
Can I submit the application myself?
Yes, and that is the intended route: you are the applicant. For individual measures on the building envelope and for renovation to an Efficiency House, however, an energy consultant accredited for federal funding must be involved, because only they can issue the required confirmation for the application (BzA). For heating funding, the declaration of the installing contractor is sufficient. I issue the confirmation and go through the application with you before it is submitted.
What happens if the costs turn out higher than applied for?
The approved amount cannot be increased afterwards. The payout is based on the costs proven, limited to the approved amount and the programme caps. This is why the cost estimates in the application matter: I estimate them from the quotes received and, in agreement with you, add a buffer to cover later additional work and price increases. If the costs turn out lower in the end, correspondingly less is paid out. An amount set too high therefore does no harm, while one set too low does lasting harm.
How long does the process take?
Processing times vary depending on the funding body and its workload. There are usually several weeks between application and approval notice. For the Hamburg programmes, the approval period for carrying out the work is 24 months.
How does the process work for a homeowners' association?
The association can only apply jointly; applications by individual owners for measures on the common property are not permitted. The application is signed by an authorised person, who also receives the approval notice. A resolution of the owners' meeting is required beforehand.
Is it worth spreading a project over two calendar years?
It can be, because the caps of federal funding apply per calendar year. Whether the benefit outweighs the extra effort and the longer construction time has to be calculated for the specific project.
Legal basis and primary sources
The information on this page reflects the status as of September 2026. Only the funding guidelines in their current version are binding. The linked sources are in German.
- Federal Funding for Efficient Buildings, individual measures (Bundesförderung für effiziente Gebäude – Einzelmaßnahmen, BEG EM), guideline of 17 July 2026
- BAFA: grants for building envelope, building services and heating optimisation
- KfW: Efficiency House, programmes 261 and 262
- IFB Hamburg: Wärmeschutz im Gebäudebestand
- IFB Hamburg: Klimaschutzprogramm für Mietwohngebäude (Mod A)
- IFB Hamburg: Hamburger Heizungsförderung
- Energy Efficiency Experts (Energie-Effizienz-Experten, listed by dena, the German Energy Agency): list for federal funding programmes
Have your eligibility checked
For a reliable assessment I need details of the building type, year of construction, number of residential units, ownership structure and planned measures. You will receive a reply within two working days.