Funding landscape 2026

Funding for landlords and owners

Which programmes apply to your property depends on the measure, the building type and the order of works. This overview sorts the relevant funding routes for the Rhine-Main region.

Important for your application: federal funding for efficient buildings requires that an expert listed for that particular category is involved. K&S Energy is entered in the German federal register of energy efficiency experts – for residential and non-residential buildings, for refurbishment and new build. See all listings.

Programmes

The funding routes at a glance

Grant, loan or tax credit – some of these routes exclude one another. Which combination yields most for your property is settled before the first application, not after.

BEG individual measures (BAFA grant)

  • 15 % grant towards insulation, windows, external doors, summer heat protection and building services other than the heating system
  • iSFP bonus: 5 percentage points – since 21 July 2026 only from a minimum eligible investment of €30,000 (single dwelling unit), and only on the amount above that threshold
  • Eligible costs: €30,000 for the first, €15,000 for the 2nd–6th and €8,000 from the 7th dwelling unit – twice those amounts with an iSFP
  • Apply before commissioning the work, not afterwards

Individual measures at BAFA (German)

Heating system funding (KfW grant 458)

  • Base funding of 30 % for replacing a boiler with a heat pump, biomass, solar thermal or a district heating connection
  • Plus the climate speed bonus and the income bonus; the efficiency bonus was discontinued on 21 July 2026
  • Bonus rates and eligible costs have been tapering every six months since – what counts is the rate on the day you apply
  • The same measure cannot also receive the BEG grant

Current rates: heating funding 458 at KfW (German)

KfW loan for Efficiency House refurbishment (261)

  • Interest-reduced loan for refurbishment to Efficiency House standard (EH 85 to EH 40)
  • Repayment grant depending on the standard achieved and on additional bonuses
  • Arranged through your own bank; planning and confirmation by a listed energy efficiency expert are mandatory

Residential buildings – loan 261 at KfW (German)

Specialist planning and construction supervision

  • 50 % grant towards energy-related construction supervision by a listed expert
  • Its own cost budget – it does not eat into the budget for the measure itself
  • For many measures the supervision is a condition of funding, not an extra

Specialist planning and supervision at BAFA (German)

Tax credit under § 35c EStG

20 % of the expenditure, spread over three years (7 %, 7 %, 6 %), capped at €40,000 per property. It applies to owner-occupied homes at least three years old and is claimed retrospectively through the income tax return.

It is an alternative to the BEG grant: for one and the same measure you take either the grant or the tax credit. Which is worth more depends on your marginal tax rate and on the size of the investment.

Regional funding – WIBank Hesse

  • Loans for the modernisation of rental housing
  • Available without meeting a KfW efficiency standard
  • Combinable with BEG or with tax advantages

Application and combinability

  • BEG grant: before works begin, via BAFA
  • KfW loan: through your bank, planning by a certified energy consultant
  • § 35c EStG: retrospectively through the tax return
  • No double funding from BAFA and § 35c

As at September 2026. The federal funding scheme was amended on 21 July 2026: the efficiency bonus was discontinued, the bonus rates for heating systems taper every six months, and the iSFP bonus now only applies above a minimum investment threshold. The binding basis is the current version of the BAFA and KfW directives and information sheets – the links above lead there. For your own project we check the rate applicable on the day of application.

What matters

The order of works decides the funding amount

The most common and most expensive mistake is commissioning too early: once a measure is ordered before the application is filed, the BEG grant for that measure is lost, and nothing can be done about it retrospectively.

Which measure comes first matters just as much. A heat pump in an uninsulated building runs at high flow temperatures and misses both the economics and the available bonuses. The individual renovation roadmap fixes that order – and on larger measures lifts the grant by up to 5 percentage points at the same time. Since July 2026 how much that is worth depends on the size of the investment; we work the figure out before the application is filed.

What can be passed on to rent and written down for tax is set out under levies and depreciation.

Stacked coins representing the financing of an energy refurbishment

Which funding fits your property?

Year of construction, building type and the planned measure are enough for a first classification. We will tell you which route is the most economical for your project – and in which order it has to be applied for.

Request funding advice +49 163 6969842