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Reforms of federal funding for efficient buildings

Even under the framework of the new Building Modernisation Act, the Federal Funding for Efficient Buildings (BEG) scheme will remain in place and will apply in an adjusted form from 21 July 2026. The reform is to render building modernisation even more socially equitable, efficient and targeted.

Make your building energy-efficient! Buildings still account for more than 30% of the energy used in Germany. Energetic retrofitting, such as insulation of the building envelope or the fitting of new windows, can bring down this figure, make your home ready for the future and cut energy costs. That benefits not only the climate, but also the economy. The Federal Funding for Efficient Buildings (BEG) provides financial support for such energy efficiency measures. A reformed BEG will apply from 21 July. The Federal Government has presented a key-points paper on this, which was adopted by the Budget Committee of the Bundestag on 8 July. The reform will render building modernisation more socially equitable, more efficient and more targeted.

Funding for building modernisation to become more cost-efficient and targeted

Eligible costs in the funding scheme for building modernisation and the climate speed bonus are being incrementally lowered. This is to deliver a reliable basis to plan on whilst also increasing the pressure on costs for the installation of climate-friendly heating systems.

The funding is also becoming more targeted as the focus on highly inefficient buildings increases. The existing worst performing building bonus (WPB), already available under the systematic modernisation funding scheme, now also applies in other types of efficiency measures taken in residential and non-residential buildings and its criteria have been made more rigorous. The bonus for serial modernisation is expanded and better dovetailed with the WPB bonus.