Germany heating subsidy: calculate the KfW grant
How much grant the KfW pays for replacing a heating system in Germany: base grant, climate speed bonus and income bonus under the conditions from July 2026.
Expected grant
€15,680
56% of the costs taken into account
- Own share €14,320
- Taken into account €28,000
With eligible costs of €30,000 you can expect a grant of €15,680.00, which is 56% of the costs taken into account of €28,000. You pay €14,320.00 yourself.
Made up of €8,400.00 base grant, €4,480.00 climate speed bonus, €2,800.00 income bonus.
- At most €28,000 are taken into account for this house: you pay the remaining €2,000 yourself, without subsidy.
I’m not an accountant or a financial advisor. This is an estimate, for information only. Check with a professional before you decide.
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| Eligible costs | €30,000.00 | |
|---|---|---|
| − | Above the maximumat most €28,000 taken into account | €2,000.00 |
| = | Costs taken into account | €28,000.00 |
| + | Base grant30% for the whole house | €8,400.00 |
| + | Climate speed bonus16% on the share of your unit | €4,480.00 |
| + | Income bonus10% on the share of your unit | €2,800.00 |
| = | Grant | €15,680.00 |
| Your own sharecosts minus grant | €14,320.00 |
How it works
- The base grant is 30% of the eligible costs, at most up to €28,000 for the first residential unit (€15,000 each for the second to sixth, €8,000 each from the seventh).
- Owner-occupiers also get the climate speed bonus of 16% if the old heating is an oil, coal, night storage or gas floor heating system (at any age) or a gas or biomass heating system at least 20 years old. It falls by 4 percentage points every six months from 01.02.2027 and ends for applications from 01.08.2028.
- The income bonus depends on the taxable annual household income: up to €30,000 40%, up to €40,000 30%, up to €50,000 10%. With a minor child entitled to child benefit the limits are €10,000 higher.
- Together at most 70% of the costs taken into account are possible, at an income up to €30,000 (with a child up to €40,000) at most 80%. With several residential units the bonuses apply to the share of your unit: the costs taken into account are divided equally among all units.
Worked example
Single-family house with €30,000 of costs (taken into account €28,000), old oil heating, €45,000 income, no child, application by 31.01.2027: base grant €8,400, climate speed bonus €4,480, income bonus €2,800, together €15,680 (56%), own share €14,320. At an income up to €30,000 it would be 30 + 16 + 40 = 86%, capped at 80%: €22,400. KfW example with two residential units and €41,000 of costs: €12,300 base grant and €3,280 climate speed bonus on €20,500, together €15,580.
Sources
- KfW: grant fact sheet No. 458: BEG heating funding for private individuals, residential buildings (valid from 24.09.2026) (in German)
- KfW: heating funding for private individuals, residential buildings (458): grant amount, bonuses and examples (in German)
- Federal Government: new Building Modernization Act: the funding continues with adjustments from 21 July 2026 (in German)
Text checked on October 6, 2026
Good to know
- The grant is an expectation: after the installation the KfW checks whether the conditions are met and then pays out. Apply before construction starts: the contract with the specialist firm needs a suspensive or resolutive condition for the KfW’s approval, and starting the project before the application rules out the funding.
- Income counts according to the income tax assessments of the second and third year before the application (for an application in 2026: average of 2023 and 2024); minor household members do not count. For the income bonus under the conditions valid since 21.07.2026, according to the KfW the documents can probably only be submitted from January 2027.
- The calculator is for a house that belongs entirely to you. For owners’ associations the KfW calculates by the co-ownership share, with an additional application for each owner-occupied apartment, within six months of approval: the KfW shows examples on its page.
- What is funded are the technologies in the KfW fact sheet: heat pumps, solar thermal, biomass heating, fuel cell heating, hydrogen-ready heating (the extra costs), innovative heating technology and the connection to a building or heat network. A pure gas or oil heating is not on the list. The building must be at least five years old at the time of application (building application or notification).
- The calculator knows only the KfW grant: grants from the states or municipalities and other programs are not included. Applications approved before 20 July 2026 are not affected by the new conditions (Federal Government).
Frequently asked questions
How high is the grant for a heat pump?
The base grant is 30% of the eligible costs, for a single-family house up to €28,000. Owner-occupiers can get up to 70% with the bonuses, at an income up to €30,000 (with a child up to €40,000) up to 80%. With one residential unit the highest grant is therefore €22,400.
What is the climate speed bonus?
A bonus of 16% for owner-occupiers who replace a working oil, coal, night storage or gas floor heating system (at any age) or a gas or biomass heating system at least 20 years old and have the old heating professionally dismantled and disposed of. It falls by 4 percentage points every six months from 1 February 2027; for applications from 1 August 2028 it no longer exists.
Who gets the income bonus?
Owner-occupiers by taxable annual household income: up to €30,000 40%, up to €40,000 30%, up to €50,000 10%. With a minor child entitled to child benefit in the household the limits are €40,000, €50,000 and €60,000. Above that there is no income bonus.
Do I have to apply before the installation?
Yes. First you have an energy efficiency expert or a specialist firm issue a confirmation for the application (BzA), then you conclude the contract with a suspensive or resolutive condition, then you apply in the «Meine KfW» portal. Only after approval does the installation begin; the confirmation after completion and the payout follow.
May I still install a gas heating system?
Yes: the 65 percent rule no longer applies since 29 July 2026. Anyone who installs a gas, oil or LPG heating system after that must cover part of the heat from biomethane, bio-oil or hydrogen from 2029: 10% from 2029, 15% from 2030, 30% from 2035 and 60% from 2040 (§ 43 of the Building Modernization Act). It is not funded.