Financial support / KfW funding

Your KfW funding at a glance

Renovate your residential building into an efficient house with affordable KfW loans and repayment subsidies. Everything you need to know about the KfW funding programs 2024 - including step-by-step instructions and expert tips for your application.

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What is KfW funding for home ownership and real estate?

New KfW funding 2024: Since January 1, 2024, KfW has been supporting the switch from fossil heating systems to modern heating systems that are powered by renewable energies. As part of this funding, you can secure up to 70 percent investment cost subsidy. In addition, KfW is offering a new, low-interest supplementary loan for individual measures that have already been subsidized.

The Kreditanstalt für Wiederaufbau, KfW for short, is a German development bank. Its roots go back to the post-war period. It was founded to promote the reconstruction of Germany. Today it supports private individuals and companies with low-interest loans and grants to purchase, build and renovate energy-saving and sustainable properties. The lender is not KfW directly, but rather a financing partner such as your house bank.

Apply for a KfW loan in 5 steps

01

Find an energy consultant

Find a certified energy consultant. He will issue you with the "confirmation of application" (BzA), which you need to submit the application. To promote efficiency in houses, support from an energy consultant is mandatory.

02

Find financing partners and apply for KfW funding

Choose a lender for your measure.

03

Complete and start the loan agreement

As soon as your loan is approved, you can place delivery and service orders with craft companies or buy your property.

04

Submit confirmation

Once the work has been completed, you submit the “Confirmation of completion” (BnD) to your bank. If you have a newly renovated house, you will receive this confirmation from the developer.

05

Receive repayment grant

After your BnDs have been successfully checked, you will receive the repayment subsidy.

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Important: Your renovation, construction or purchase project may only begin after you have submitted your application. If you start too early, funding from KfW will no longer be possible. This excludes planning and consulting services, which you can also use beforehand.

Your advantages

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On site throughout Germany in 14 days

No more waiting - an expert will come to your home within 14 days to record data.

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Understand and use savings potential

With our technology we can calculate exactly which measures are worthwhile and how much can be saved

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Guaranteed to secure maximum funding.

With our renovation roadmap, you will receive a 5%* funding bonus for 15 years without any obligation to implement it.

We are convinced of our offer. But don't just rely on our word

This is what our customers say

Eva S.

"From day one, the support has been exemplary. Whenever we had a problem or question, they were just a phone call away. It's refreshing to experience such good support!"

Mahendra R.

"It's rare to find local experts with such extensive knowledge and commitment. Their insights made the difference in our project. Kudos to the team!"

Mark M.

"I've worked with several companies, but this team's quick turnaround really stands out. We were up and running within a few days. Very impressed!"

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Table of contents

Federal funding for efficient buildings (BEG)

Promoting climate-friendly new construction

Requirements and application: This is how you secure your funding

6 expert tips for a successful application

The most important modalities of your KfW financing

Alternative financing options for your residential building

Federal funding for efficient buildings (BEG)


Federal funding for efficient buildings promotes measures to increase energy efficiency and the use of renewable energies. There are currently three financing programs available to you as part of the BEG:

No Financial support Art Delivery height Funded trades
261 Renovation of a residential building (WG) Credit 5 to 60 percent of the eligible loan amount of a maximum of 150,000 euros, max. 90,000 euros Insulation roof / floor ceilings / facade / basement / doors / windows / system technology (except heating) / heating (no oil heating) / solar thermal energy / heating optimization (modernization only) / photovoltaics
New construction of a residential building (WG) up to 20 percent of the loan amount of a maximum of 150,000 euros, max. 30,000 euros
263 Renovation and purchase of a freshly renovated residential building (NWG) up to 2,000 euros per square meter, max. 10 million euros per project
270 Energy efficient solutions for heat and electricity Loan volume up to 50,000 euros Installation of photovoltaic systems, combined heat and power (combined heat and power plants) and battery storage
358 & 359 For renovation measures that have already been subsidized (WG) Supplementary loan Up to 120,000 euros in credit per residential unit Individual measures for energy-related renovation for which a (BAFA) grant has already been granted
458 Heating support for private individuals Grant Grant up to 23,500 euros Purchase and construction of a new, climate-friendly heating system
262 & 433 set
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Notice

Would you like to have an efficiency house funded? Then the building application or building notice for your residential building must have been at least 5 years old at the time of the application.

You can find detailed information about the individual funding programs on the following pages:

  • KfW 261
  • KfW 263
  • KfW 270
  • KfW 270
  • KfW 358
  • KfW 359
  • KfW 458

Promoting climate-friendly new construction


The Kreditanstalt für Wiederaufbau promotes sustainable and climate-friendly construction. If you buy a residential building (shared apartment) within 12 months of building acceptance, you can also take advantage of low-interest subsidies. These three programs are currently available to choose from:

No Financial support Art Delivery height Funded trades
297 Shared apartment for private use Credit up to 100 percent of eligible costs

for climate-friendly buildings up to 100,000 euros

for climate-friendly buildings with QNG up to 150,000 euros
climate-friendly shared apartment

Climate-friendly shared apartment with QNG
298 Climate-friendly new building from NWG
299 Klimafreundlicher Neubau von NWG for climate-friendly buildings up to 2,000 euros per square meter, max. 10 million euros per project

for climate-friendly buildings with QNG up to 3,000 euros per square meter, max. 15 million euros per project
262 & 433 set
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Attention: Due to exhausted budget funds, funding for climate-friendly new buildings cannot currently be applied for. It is not yet possible to predict whether and when the KfW programs 297, 298 and 299 will be continued. If you are interested in these subsidies, it is worth keeping an eye on KfW's official channels.

Find the right support for your renovation project

The best way to find out which KfW funding is right for your house or property is to speak to an IKOSIA energy consultant. Our independent experts will advise you on the individual programs and financing options.

Inquire for free

Requirements and application: This is how you secure your funding


To receive KfW 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
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Notice

There is no minimum income for KfW 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.

6 expert tips for a successful application

  • Take care of your financing early on: arrange a meeting with a funding expert in good time.
  • Prepare for the interview: Research the necessary documents in advance and find out about the individual funding products.
  • Ask specifically about government funding: Show your own initiative and ask specific questions about government funding measures.
  • Question your collateral: Think in advance about what collateral you can offer your financing partner and thereby increase your chances of a successful loan application.
  • Compare lenders: Make appointments with different banks and compare the conditions to find the best offer.

Meet deadlines: Submit your application in good time before the start of the project and also take the processing times at your bank into account

The most important modalities of your KfW financing


In contrast to a government subsidy, the KfW Development Bank offers you the opportunity to obtain a loan at comparatively favorable conditions. But as with any loan, the following applies here: you have to pay the money back. It is all the more important that you understand all aspects and payment methods.

This is how financing your own four walls works:

  • Interest: Your bank sets your individual interest rate. The better your financial situation and the more security you have, the lower the interest rates will be.
  • Fixed interest rate: You can choose between a fixed interest rate of 5 or 10 years. During this time, you pay a fixed interest rate, regardless of market developments. At the end of the period, you will pay the current market interest rates, which may be higher.
  • Term: The term of the loan indicates how long you have to repay the money. Terms of up to 35 years are possible.
  • Repayment-free start-up years: Depending on the program and project, KfW also offers repayment subsidies. This means that you don't have to repay the entire loan amount, but only a portion. The amount of the repayment subsidy depends on how energy-efficient your property is after the renovation.
  • Repayment subsidies: Depending on the program and project, KfW also offers repayment subsidies. This means that you don't have to repay the entire loan amount, but only a portion. The amount of the repayment subsidy depends on how energy-efficient your property is after the renovation.
  • Repayment: The repayment takes place in monthly installments.
    • Early repayment: If your contract runs for less than ten years, you can pay an early repayment penalty and finance the remaining debt at more favorable conditions.
    • Special payments: Unlike annuity loans, unscheduled special repayments are generally not possible with KfW loans.
    • Special termination: After ten years (or depending on the agreement) you can replace the loan free of charge and pay off the remaining debt with new financing.
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Notice

This information is for your guidance only. For binding information, please contact your bank.

Summary: The framework conditions for your funding

No Running times Repayment-free start-up period Fixed interest rate
Renovations up to 30 years up to 5 years max. 10 years, with KfW 270 up to 20 years
New buildings up to 35 years up to 35 years max. 10 years

Alternative financing options for your residential building


1. BAFA funding

You don't want to renovate your house into a residential building, but just implement individual measures to save energy and, for example, re-insulate your roof. Then the BAFA funding for individual measures (BEG EM) is the right program for you.

2. Tax bonus

You can find detailed information about the individual funding programs on the following pages:

  • Your property is at least 10 years old
  • You are the owner and live in the property yourself.
  • Otherwise, the same criteria apply to KfW and BAFA.
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Notice

The tax bonus cannot be combined with other funding programs.

3. Energy tax refund

A third tax option is to refund the energy tax for gas in cogeneration systems such as fuel cells and combined heat and power plants. Up to 0.55 cents per kilowatt hour can be reimbursed. Systems that operate with heating oil are excluded from reimbursement. The funding is applied for at the main customs office and can be combined with KfW and BAFA funding.

Your advice on KfW funding – secure your funding!

Our certified IKOSIA energy consultants will support you in choosing the right financing option and accompany you in the application process.

Inquire for free

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Frequently Asked Questions

What is KfW? arrow

The Kreditanstalt für Wiederaufbau is a German federal bank. It offers financing programs for private individuals and companies that want to implement environmental protection, energy efficiency and social housing measures. For this purpose, KfW provides low-cost loans and repayment subsidies.

What is an efficiency house? arrow

Efficiency houses are properties that have a particularly efficient and economical energy balance. Both the thermal insulation and the total energy requirement are evaluated. Depending on their energy consumption, the buildings are divided into different efficiency classes.

What do the different efficiency house levels mean? arrow

An efficiency house level indicates how energy efficient a building is. The levels are often also called efficiency classes. There are several levels from 40 to 85. The higher the number, the higher the energy requirements of the house. An efficiency house 40 is therefore particularly energy efficient. When classifying, the property in question is compared with a reference building that was built in accordance with the requirements of the Building Energy Act (GEG).

The key figures represent the primary energy consumption:

  • An EH 40 consumes 40 percent of the primary energy.
  • An EH 55 already consumes 55 percent of the primary energy.
  • etc.

In addition to these EH levels, there is another class: the renewable energy class. It was introduced as part of the federal funding for efficient buildings (BEG) and recognizes buildings whose heating system covers at least 55 percent of their energy requirements with renewable energies.

What do the different efficiency house levels mean? arrow

The amount of your funding depends on the efficiency class that your building achieves after construction and renovation. The lower the energy requirement and therefore the level, the higher the funding.

What is the “Sustainable Building Quality Seal”? arrow

The state “Sustainable Building Quality Seal” (QNG) is a certification from the Federal Ministry of Housing, Urban Development and Construction. It honors residential and non-residential buildings that meet particularly high standards of sustainable construction. Anyone who builds a QNG-certified house receives an additional funding bonus.

Does KfW also support individual measures? arrow

No, KfW funding is limited to the renovation of efficiency houses and new buildings. Since 2021, individual measures have been subsidized exclusively by the Federal Office of Economics and Export Control (BAFA).

Does the credit institution grant loans directly? arrow

No, KfW does not grant loans itself. Instead, you apply for financing through your house bank, savings banks, commercial banks, building societies or cooperative banks.

Can I combine different KfW funding programs? arrow

If you are planning an energy modernization, you can combine different programs. For example, you can apply for a loan from the KfW 261 program to renovate your home. If you also want to use renewable energies and, for example, install a solar system, you can have this funded through the KfW 270 program.

Do I have to use equity to finance my renovation project? arrow

In order to receive a KfW loan, it is not absolutely necessary to use your own funds for your modernization. However, it can definitely be worthwhile to contribute some of your equity. On the one hand, this reduces the loan amount that you have to take out. On the other hand, this improves your creditworthiness - you may get better loan conditions.

How long does the application process at KfW take? arrow

If all information is complete and the funding bank has no questions, it will usually approve your funding quickly. However, your application can also be delayed, for example, if information is missing or there are doubts about the need for funding. Our independent energy consultants will support you with your application so that you avoid mistakes and receive the optimal funding for your house or apartment

Further information about your KfW program arrow

On the following pages you will find further information about your energy renovation and current KfW funding:

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