+++ Energy consulting blog series (part 6) +++ In times of rising energy costs and growing environmental awareness, the energy-efficient refurbishment of buildings is becoming increasingly important. In particular, companies and municipalities benefit from targeted investments in the energy efficiency of buildings – not only through lower operating costs, but also through attractive funding opportunities. In this blog post, we take a look at refurbishments with individual measures and the support provided by KfW and BAFA.

The German programme ‘Federal Funding for Efficient Buildings (BEG)’ is particularly interesting. It consists of three sub-programmes, for which applications are submitted partly to BAFA and partly to KfW: residential buildings (BEG WG), non-residential buildings (BEG NWG) – and individual measures (BEG EM), which we will discuss in more detail.

 




+++ Our blog series on energy consulting +++

 

What are individual measures?

Individual measures are targeted, smaller-scale renovation measures that aim to gradually improve a building's energy efficiency. These measures are particularly suitable for companies and municipalities that want to modernise their buildings without directly carrying out a comprehensive renovation. These include, among other things:
  • Insulation of the roof, exterior walls or basement ceilings
  • Replacement of windows and exterior doors
  • Installation of an energy-efficient heating system (e.g. heat pump or biomass)
  • Optimisation of existing heating systems
  • Installation of ventilation and air-conditioning systems

Individual measures are particularly suitable when a complete renovation is not immediately feasible for financial or time reasons. Instead, the energy efficiency of the building can be improved step by step.

BAFA subsidies for individual measures

The Federal Office for Economic Affairs and Export Control (BAFA) offers attractive subsidies for energy-efficient renovation measures as part of the federal funding for efficient buildings – individual measures (BEG EM).

What does the BAFA subsidy offer?
  • Direct subsidies: up to 40% of the costs for measures such as replacing fossil fuel heating systems with renewable systems
  • Eligible measures: heat pumps, solar thermal systems, biomass heating systems, heating optimisation
  • Combinability: Since 2024, BAFA grants can be combined with KfW loans, for example grants for individual measures and KfW loan no. 261. However, a measure cannot be subsidised twice.
Requirements for funding:
  • Application before the start of the project
  • Implementation by specialist companies
  • Involvement of an energy efficiency expert

Renovation with KfW: affordable financing for large projects

The KfW (Kreditanstalt für Wiederaufbau) supports energy-efficient renovations with low-interest loans and repayment grants, which benefit municipalities and companies, especially for larger projects. Particularly relevant here is the KfW 261 funding programme – ‘Residential buildings – loan’. The KfW 261 loan is part of the federal funding for efficient buildings (BEG WG).

What does the KfW loan offer?
  • Loan amount: up to 150,000 euros per residential unit
  • Repayment subsidy: depending on the efficiency house standard, up to 50% (max. 75,000 euros)
  • Term: flexible terms with redemption-free initial years
Requirements for funding:
  • The complete renovation to an energy-efficient house (or the purchase) is subsidised.
  • The measures must be supervised by an energy efficiency expert.
  • The minimum technical requirements of the KfW must be met.
  • Applications must be submitted before construction work begins.

The path to successful renovation

Successful energy-efficient renovation requires careful planning and the right choice of funding options. The following steps will help ensure a smooth implementation:

  1. Seek advice: The first step should always be to seek advice from a certified energy consultant. They will draw up a renovation plan and support you with the application to KfW or BAFA.
  2. Choose your funding: Check whether a KfW loan or a BAFA grant is better suited to your project. KfW is suitable for larger investments, BAFA for targeted individual measures.
  3. Plan financing: KfW loans are applied for through the house bank, while BAFA grants are applied for directly from BAFA.
  4. Implement measures: After approval, construction work can begin. Important: All measures must meet the respective standards.
  5. Completion and payment: After successful implementation, energy consultants or specialist companies check the results so that the grants or repayment grants can be awarded.

Conclusion

Thanks to the funding programmes from KfW and BAFA, companies and municipalities can receive financial support for energy-efficient renovation. Renovation with individual measures offers a flexible way to make buildings more energy efficient. KfW loans are a good funding option for larger projects. Those who plan early and seek advice can not only reduce energy costs in the long term, but also increase the value of their properties and currently still secure high subsidies. Please feel free to contact our experts in energy consulting.

 

Text: Mathias Wendt

 

Johannes Eder

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Johannes Eder

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In the field of energy and environmental management, I have in-depth expertise. After graduating, I was able to gain extensive professional experience in this field by working for a renowned engineering company for six years. During this time, I deepened my knowledge and skills in the area of construction supervision and further qualified as an energy efficiency expert for residential and non-residential buildings. In my current position at EurA, I use this knowledge in a targeted way to develop customised solutions in the areas of construction, efficient energy use and optimal utilisation of subsidies.
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