Heat Pump Subsidies Germany 2026 – KfW & BEG Grant Guide
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Heat pump subsidies in Germany 2026 – what you need to know now
If you replace an old heating system with a heat pump in an existing residential building in Germany, you can receive a grant from KfW. The relevant programme is 458 "Heating subsidy for private individuals – residential buildings" under the Federal Funding for Efficient Buildings (BEG). This guide summarises the conditions as stated by KfW (as of 29 Sept 2026).
Key figures for 2026
| Component | Amount | Condition |
|---|---|---|
| Base grant | 30% | Heating replacement in an existing residential building |
| Climate speed bonus | 16% | Owner-occupied unit (main or sole residence); replacing a working oil, coal, gas floor or night-storage heater, or a gas or biomass heater at least 20 years old |
| Income bonus | up to 40% | Owner-occupiers, staggered by taxable household income (see below) |
| Maximum rate | 70% or 80% | 80% for a taxable household income up to €30,000 (up to €40,000 with a child eligible for child benefit), otherwise max. 70% |
| Eligible costs | up to €28,000 | For the first residential unit (single-family home) |
Income bonus in detail
- taxable household income up to €30,000: 40%
- up to €40,000: 30%
- up to €50,000: 10%
With a child eligible for child benefit, each threshold increases by €10,000.
What changes from 2027
- The climate speed bonus decreases by 4 percentage points every six months from 1 Feb 2027 and ends on 1 Aug 2028.
- The maximum eligible amount for the first residential unit decreases by €750 every six months (on 1 Feb and 1 Aug) from 1 Feb 2027.
Apartment buildings and landlords
In apartment buildings, eligible costs are staggered: €28,000 for the first unit, €15,000 per unit for the second to sixth and €8,000 from the seventh. Landlords receive the base grant but no bonuses. In owners' associations, an authorised person submits the basic application; owner-occupiers can apply for the bonuses with their own supplementary applications.
Step by step to your grant
- Get a quote from a specialist contractor or an energy efficiency expert. KfW requires the measure to be carried out professionally by a specialist company.
- Sign a conditional contract: Before applying, you conclude a supply or service contract with a condition precedent or subsequent – so the contract only applies if the grant is approved.
- Apply in the KfW grant portal – before the project starts.
- Have the heat pump installed and submit the required evidence in the grant portal afterwards.
- Payment of the grant by KfW.
According to KfW, the grant can be combined with the supplementary loan (programmes 358/359) for interim financing. Binding details on deadlines and evidence are available in the KfW grant portal.
Alternative: tax reduction under § 35c EStG
Instead of the grant, energy-related measures on owner-occupied property can be claimed for tax purposes: 20% of the costs, spread over three years, up to €40,000 per property. The grant and the tax reduction cannot be combined for the same measure. Your tax adviser can tell you which option pays off.
Avoid common mistakes
- ❌ Signing a contract without a condition precedent or subsequent
- ❌ Starting the project before the application has been submitted
- ❌ Installation without a specialist company
- ❌ Combining the grant and the § 35c tax reduction for the same measure
Frequently asked questions
Is a split air conditioner used for heating also eligible?
Programme 458 funds the replacement of the heating system. Please check whether a specific unit is eligible against the KfW requirements and the list of eligible systems before buying.
Is the climate speed bonus still available in 2026?
Yes. It is currently 16% and decreases by 4 percentage points every six months from 1 Feb 2027. It ends on 1 Aug 2028 – so replacing a fossil heating system early pays off.
All information without guarantee – the KfW conditions valid at the time of your application apply.