BAFA funding 2024 simply explained

BAFA funding at a glance: What funding programs are there in 2024?

The Federal Office offers various funding for switching to energy-efficient technologies and systems, for energy-saving measures and for the use of resource- and energy-saving heating methods. You can also apply for funding for specialist planning and construction supervision by an energy consultant.

The two central programs are the “Federal Funding for Efficient Buildings – Individual Measures” and the “Federal Funding for Energy and Resource Efficiency in the Economy – grants”.

Federal funding for efficient buildings – individual measures (BEG EM)

The BEG is an important pillar of the federal government's 2030 climate protection program. As part of the BEG EM, BAFA subsidizes individual measures

• on the building envelope (e.g. insulation)
• on system technology (e.g. installation of ventilation systems)
• on systems for heat generation (e.g. construction of a building network)

in residential buildings (WG) and non-residential buildings (NWG).

Danger:

Since January 1, 2024, subsidies for heating replacement, for example for heat pumps, solar thermal systems, or biomass heating, can no longer be applied for from BAFA. As a homeowner, you must now submit your heating funding application to KfW.

Anyone who wants to invest in the eligible measures is eligible to apply for this program. This means that private and commercial homeowners are supported, as are municipalities, non-profit organizations, and contractors (e.g. energy service providers).

The following individual measures will be covered under the BEG EM by the new BAFA funding 2024:

In addition to funding individual measures, BAFA also subsidizes so-called accompanying measures. For example, if you have your roof re-roofed to save energy, you can also have the associated roofing work funded.

Tip:

Would you like to renovate your house into an efficiency house or are you planning to buy a newly renovated efficiency house (according to BEG WG)? Then the current KfW funding is just right for you!

Can several individual measures be funded?

The program is limited to funding individual measures such as replacing an old heating system. But that doesn't mean that you can only have a single measure funded - on the contrary.

You can also implement several individual measures one after the other and thus gradually renovate your house - and at the same time receive a further 5 percent funding (see Fig. 1). In order to receive this funding, you need a so-called individual restructuring roadmap (iSFP).

Our certified energy consultants will create your iSFP together with you in order to secure the maximum BAFA funding.

Particularly practical: The Federal Office supports the creation of your iSFP with up to 80 percent of the eligible costs.

Our certified energy consultants will create your iSFP together with you in order to secure the maximum BAFA funding.

Inquire for free

Federal funding for energy and resource efficiency in the economy – grant

In addition to the BAFA funding according to BEG, the Federal Office also offers grants for small and medium-sized enterprises (SMEs). BAFA supports commercial applicants, among other things

• the switch to energy-efficient processes
• the switch to renewable energies in production
• the use of alternative drive technologies
• energy consulting for (non-)residential buildings, facilities, and systems

Would you like to find out more about the BAFA programs for companies? You will find what you are looking for on our pages for business customers!

Requirements for BAFA funding – What do you have to consider?

In order to successfully submit an application for state funding under the BEG EM, you must meet a few requirements:

• You are the owner of the building to be renovated.
• If you are not, you must inform the building owners before submitting your application.
• Your renovation property is in the Federal Republic of Germany.
• You must use the funded facilities or renovated parts of the building for their intended purpose for at least 10 years after the measure has been completed.
• The renovation is carried out by a professional company.
• Depending on the measure, support from an energy consultant is mandatory.
• As a service recipient (contractor), you conclude a contracting agreement with the executing company (contractor).
• The contracting agreement must comply with the requirements of the BEG guidelines.
• Your renovation project must meet the minimum technical requirements.

Requirements and application: This is how you secure your funding

In order to receive BAFA Hub funding for real estate, some general requirements apply. You need to

• be of legal age at the time of application
• have a German residence
• provide German bank details
• have a regular income
• can demonstrate sufficient creditworthiness
• pursue an energy-efficient construction project

Notice

There is no minimum income for bafahub loans. However, the funding amount and the project itself must be proportionate to your existing income or assets so that you can repay the loan in the long term

Depending on the program, other specific criteria also apply to your financing project.

Checklist: You need these documents for funding from BAFA

To apply for BAFA funding according to the BEG EM, the following documents are required:

• Cost estimates for the measures to be supported
• the specific funding amount
• proof of collaboration with an energy consultant
• the Technical Project Description (TPB) with an explanation of the proposed measure
• the technical project description ID

Common mistakes when submitting an application – and how to avoid them

Funding for new windows or the use of renewable energies for heating is an enormous financial relief for your renovation project. To give you the best chance of receiving a positive decision, you should avoid the following mistakes:

• Incorrect information: Small carelessness such as incorrectly filled out information in the application or errors in invoices can have expensive consequences. For example, if the investment address or even just the date is incorrect, in the worst case scenario you will be denied the subsidy.
• Investment costs calculated incorrectly: A renovation project can quickly become more expensive than planned. You must take these additional costs into account in your application. There are also eligible additional costs that are often forgotten
• Overlooking the limits of eligible costs: BAFA currently supports a maximum of 60,000 euros per residential unit or 1,000 euros per square meter for non-residential buildings. If you do not adhere to these limits, funding is not possible.
• Missing applications: With the individual renovation roadmap you can apply for several measures in a single process. However, depending on the measure, complex projects, or several buildings, you may have to submit multiple applications. Find out in advance how many applications you actually need for your entire project.
• Duplicate applications: The funding programs are subject to constant changes. It is not unusual for the funding rates to change from one year to the next. Some applicants then make the mistake of submitting a second application for the same measure. Such duplicate applications will be rejected - even if the individual applications were approved.
• Incomplete documents: BAFA will examine your application in detail. It is therefore important that you submit documents such as transfer receipts, specialist contractor declarations, site plans, and much more completely and on time. Therefore, keep all documents and proactively check whether anything is missing.
• Technical evidence is missing: Make sure you can provide all evidence of compliance with the minimum technical requirements for your application. If you do not submit this, submit it incompletely or too late, your application will be rejected.
• Deadlines are not met: BAFA strives to provide you with the best possible support in your renovation project. This is why we often ask if there is missing information or changes in the application. Make sure that you communicate with the office in a timely manner. If you do not meet the deadlines, your application will be rejected in the worst-case scenario.

How much money can you save with possible BAFA funding?

Renovation measures are expensive. But given rising energy costs and advancing climate change, there is no way around it. The energy transition must come - and as a homeowner you can make an important contribution to it.

Thanks to BAFA funding for heat pumps or new windows, you don't have to make the investment alone. The amount of funding depends on many factors:

• What do you want to promote?
• What condition is your house in?
• Which old systems are available?

Our certified energy consultants will create your iSFP together with you in order to secure the maximum BAFA funding.

Inquire for free

Which costs are eligible?

The funding of system technology, the renovation of the building envelope, or the heating funding from BAFA covers various eligible costs.

This includes:

• Acquisition costs of the new systems or components
• Installation and commissioning costs
• Costs of the necessary environmental measures
• Promotion of specialist planning and construction support by energy consultants

The BAFA 2024 funding level for individual measures is currently limited to a maximum of 60,000 euros per year per residential unit for residential buildings. For non-residential buildings, the eligible costs are a maximum of 1,000 euros per square meter of net floor area. A total of up to 5 million euros can be funded. In addition to the maximum amounts, there is also a lower limit. You have to invest at least 2,000 euros to receive the grant.

Tax bonus instead of BAFA subsidy?

In addition to the BAFA subsidy or KfW funding, there is another savings option: the tax bonus. In principle, all work that is eligible for funding from KfW or BAFA can also be claimed for tax purposes. If you would like to use this option, certain requirements apply for funding:

• Your property must be a single-family home or multi-family home that is at least 10 years old.
• You must live in the house yourself.
• A maximum of 20 percent of the eligible costs can be taken into account up to a maximum of 200,000 euros (max. 40,000 euros in funding).
• Otherwise, the same funding criteria apply as for BAFA and KfW.

Notice

The tax bonus cannot be combined with other funding programs.

You can also save money with tax incentives for combined heat and power (CHP) systems such as fuel cells and combined heat and power plants. If you operate such a system with gas, you can have the energy tax refunded. You currently receive up to 0.55 cents per kilowatt hour. Systems that run on oil are excluded from this funding. If you want to secure a refund, you must apply for it at the main customs office. It can be combined with funding from BAFA and KfW.

Current changes to the BAFA funding programs

Since the beginning of 2021, the "Federal Funding for Efficient Buildings" (BEG) has been bundling the previous state funding options. Old programs such as the KfW's CO2 building renovation program and the BAFA's "Heating with Renewable Energies" offer have been brought together under the umbrella of the new BEG.

As part of the BEG EM, the BAFA only supports individual measures in existing buildings. However, you can apply for a loan from KfW if you want to renovate your new building into an efficient house. There is no longer any funding for individual measures in new buildings per se. To this end, the funding rates for certain measures were increased in 2024.

Another innovation is that BAFA has simplified the application process. You can now submit the application digitally and enjoy shortened processing times.

Secure your BAFA funding!

Our IKOSIA experts will advise you on the various funding options and support you in your renovation project.

Inquire for free