Heat Pump Subsidies in Germany 2026 – Everything You Need to Know
Germany's federal government offers some of the most generous heat pump subsidies in Europe. Under the Bundesförderung für effiziente Gebäude (BEG), homeowners can receive grants covering 30–70% of eligible installation costs. This guide explains exactly who qualifies, how much you can receive, and step by step how to apply.
Key Figures for 2026
| Bonus Component | Amount | Condition |
|---|---|---|
| Base subsidy | 30% | All heat pump replacements in existing buildings |
| Climate speed bonus | +20% | Replacing oil, gas, coal or night-storage heating |
| Income bonus | +30% | Household income ≤ €40,000/year (taxable) |
| Maximum grant | 70% | All three bonuses combined |
| Eligible cost cap | €30,000 | For first residential unit |
| Maximum grant amount | €21,000 | 70% of €30,000 |
What Exactly is the BEG?
The Bundesförderung für effiziente Gebäude (BEG) replaced the old KfW and BAFA grant programmes in 2021. It is administered by BAFA (Bundesamt für Wirtschaft und Ausfuhrkontrolle) for individual measures including heat pumps. The KfW bank handles BEG loans and full building renovation packages separately.
Which Heat Pumps Qualify?
To receive the BEG subsidy, the heat pump must:
- Have a COP ≥ 2.7 at A2/W35 (for air-to-water heat pumps) or ≥ 3.5 at W10/W35 (for ground source)
- Be installed by a certified heating contractor (Fachunternehmer)
- Replace an existing heating system in a building that was first occupied more than 5 years ago
- Not use electrical backup heaters as the primary heating source
Air-to-water heat pumps (Luft-Wasser-Wärmepumpe), ground source (Erdwärmepumpe), and water-source heat pumps all qualify. Air-to-air heat pumps (split AC systems used for heating) are not eligible for BEG — they fall under different energy efficiency programmes.
Step-by-Step: How to Apply
- Get quotes from certified installers. Do not commission work yet — applications must be submitted before the start of construction.
- Register at mein.bafa.de and create a BEG Einzelmaßnahme application.
- Submit your application with installer quotes and building details. You receive a commitment notice (Zuwendungsbescheid) within a few weeks.
- Commission the work after receiving your commitment notice.
- Submit the completion documents within 36 months: invoice, energy advisor confirmation, and bank details for payment.
- Receive your grant — paid directly to your bank account.
Additional Incentives
Tax Deduction (§ 35c EStG)
If you do not use BEG grants, you can alternatively deduct 20% of eligible renovation costs from your income tax (up to €40,000 tax reduction over 3 years). This is often more advantageous for high-income taxpayers. You cannot combine the tax deduction with BEG grants.
KfW Energy Efficiency Loans
The KfW 261 programme offers low-interest loans (from 4.06% effective annual rate as of Q1 2026) for comprehensive energy renovations including heat pumps. Loans and BEG grants can be combined up to the eligible cost cap.
Common Mistakes to Avoid
- ❌ Starting installation before the BAFA application is approved
- ❌ Buying the heat pump from a non-certified installer
- ❌ Applying for BEG grant AND the § 35c tax deduction for the same measure
- ❌ Choosing a heat pump that doesn't meet the COP requirements
Frequently Asked Questions
Can I get a subsidy for a heat pump in a new build?
No. BEG Einzelmaßnahmen are only for existing buildings. New builds fall under the BEG Neubau programme, which focuses on overall building efficiency (QNG certification) rather than individual measures.
Is the 'Klimageschwindigkeitsbonus' still available in 2026?
Yes — the climate speed bonus (+20%) remains in effect for 2026 for households replacing fossil fuel heating. The income bonus (+30%) requires annual income proof via your most recent tax assessment.
How long does the BAFA application process take?
Applications are typically processed within 4–8 weeks. The 36-month completion deadline is generous, giving you plenty of time to find a good installer after approval.
