Federal Ministry for Economic Affairs and Climate Action sets new incentives for refurbishments and introduces a bonus for serial refurbishments

The improvement of the energy performance of buildings and the use of renewable energies to generate heat are key steps in reducing consumers' energy costs and achieving our climate goals. The Federal Funding for Efficient Buildings programme (BEG) is intended to support as many people as possible in taking these steps. The Federal Government has therefore decided on the second stage of reform of the BEG, which has already been announced, in order to continue on the path taken in the summer.

In order to be able to support as many applicants as possible, access to the BEG will be further facilitated, funding bonuses will increase the incentives for refurbishments and the funding efficiency of the programme will again be enhanced.
The changes to the BEG funding guidelines will be published in the Federal Gazette in 2022 and will come into force on 1 January 2023. All three sub-programmes of the BEG (residential buildings, non-residential buildings and individual measures) are affected by the changes.

The changes in detail:
The changes introduce or expand bonuses in a targeted manner in order to further incentivise the refurbishment subsidy. A bonus for serial refurbishment of 15 percentage points is introduced. Serial refurbishment is an innovative method for comprehensive improvement of energy performance (building envelope & technology). We support the use of prefabricated facade and roof elements. In this way, the amount of work done on site and the costs can be significantly reduced.

In addition, the bonus introduced in September for the least energy-efficient buildings, the Worst Performing Buildings Bonus, will be increased from 5 to 10 percentage points and, in addition to the EH/EG 40 and EH/EG 55 levels, will also apply for refurbishments to an EH/EG 70 EE standard.
Another change concerns the subsidy for new buildings: this is now the fourth sub-programme of the BEG and will be spun off from the previous guidelines and regulated from March 2023 in a separate guideline entitled “Climate-friendly new construction” under the leadership of the Federal Ministry of Housing, Urban Development and Building (BMWSB).
Until then, the existing regulations under the BEG will continue to apply. This ensures a seamless transition in the funding for new construction. Furthermore, the reform introduces technical adjustments with the aim of promoting particularly high-quality heating systems.
As a result of these changes, for example, funding will only go to heat pumps that are more efficient and biomass heating systems with particularly low particulate emissions.

As before, the overriding goal of the reform is to achieve climate neutrality in existing buildings by 2045. In addition to regulatory law, the Federal Funding for Efficient Buildings programme (BEG) is a central policy instrument which draws on a budget of €13 billion in 2023 to provide appropriate incentives in the market.