German government funding for your heating system – save money when installing a new one
There are numerous government subsidies available at local, state, and federal level in Germany and since these can change quickly it’s easy to lose track. That’s why we’d like to provide you with a general overview and some initial guidance here, while strongly recommending that you check with the relevant authorities for up-to-date information on available funding.
What types of subsidies are available?
Tax subsidies
If you choose the tax incentive, you will receive a tax credit spread over three years: 7% of the eligible costs in year one and year two, and 6% in year three. To claim this incentive in your tax return, you will typically need:
- Contractor invoices that can be assigned to the heating system
- Proof of payment for those invoices
- A certificate from the executing specialist contractor
- The VdZ form “Hydraulic balancing, method A,” completed by the contractor
- An excerpt from the current BAFA list showing eligible products
BAFA subsidy (BEG)
The Federal Funding for Efficient Buildings (BEG) is a program from the Federal Ministry for Economic Affairs and Energy (BMWi) that includes various subsidy modules for energy-efficient construction and renovation. This also covers financial support for heating system replacement, particularly when outdated systems are replaced with more efficient and environmentally friendly options.
New oil- or gas-only heating systems are not eligible for funding (if combined with renewable energy sources, only the renewable share qualifies). Shortly before the turn of the year 2023/2024, the BEG was significantly revised based on requirements from the reformed Building Energy Act (GEG). It now applies as the Federal Funding for Efficient Buildings – Individual Measures (BEG EM).
- Read more
The new BEG EM affects how applications are submitted. From 2024, anyone planning a heating system replacement with a heat pump, solar thermal system, or biomass heating can only apply for subsidies through KfW. For the construction, expansion, or conversion of building networks, applications must be submitted to BAFA, the Federal Office for Economic Affairs and Export Control. BAFA also continues to support individual efficiency measures such as building envelope insulation, heating system optimisation, or plant technology.
A basic subsidy of 15% still applies. If an individual renovation roadmap is available, an additional 5% bonus can be granted. Eligible expenses for efficiency measures are capped at €60,000 per housing unit. Without a renovation roadmap, the eligible amount is halved to €30,000.
New from 2024: financial incentives for heating system replacement and for general energy efficiency measures are now combined. With an individual renovation roadmap, the subsidy for a single-family home or the first unit in a multi-family building can reach up to €90,000 in total. However, no more than €30,000 of this may go towards the heating system replacement, while up to €60,000 may be used for other efficiency measures.
This is how new heating systems have been subsidised since 2024
Heating pump up to 70%
A hybrid heating solution combining an existing boiler with a new heat pump is now also eligible for funding. Previously, the old heating system had to be removed.
The maximum eligible investment for the first housing unit is €30,000. From the second unit, €15,000 applies per unit, and from the seventh unit onwards, €8,000 per unit. For all renovation projects, the base subsidy rate is 30%. An additional 5% efficiency bonus is granted if water, ground, or wastewater is used as the heat source, or if a natural refrigerant such as propane is applied.
Self-occupying homeowners can receive a 20% speed bonus when replacing gas heating, biomass heating systems older than 20 years, gas floor heating, oil heating, coal heating, or night storage heating. On top of that, a 30% income bonus is available for self-occupying homeowners with a taxable household income of less than €40,000.
Altogether, this means that in 2024 the maximum subsidy for the first housing unit is 70%, which equals €21,000.
Pellet/log wood heating system up to 70%
Since 2024, it has been possible to benefit from subsidies even without installing a solar thermal system or heat pump. The maximum eligible investment for the first housing unit is €30,000. From the second unit onwards, €15,000 applies per unit, and from the seventh unit onwards, €8,000 per unit.
For all renovation projects, the base subsidy rate is 30%. In addition, there is an emission reduction bonus of €2,500 if dust emissions can be reduced to 2.5 mg/m³ or less, for example by using a dust separator. A 20% speed bonus is available to self-occupying homeowners when replacing gas heating, biomass heating systems older than 20 years, gas floor heating, oil heating, coal heating, or night storage heating – but only in combination with a solar or PV system or a heat pump.
There is also a 30% income bonus for self-occupying homeowners with a taxable household income of less than €40,000. This means that in 2024, the maximum subsidy for biomass heating systems for the first housing unit is 70%, equal to €21,000 – or €23,500 with the emissions reduction bonus.
Solar thermal system up to 70%
The maximum eligible investment for the first housing unit is €30,000. From the second unit onwards, €15,000 applies per unit, and from the seventh unit onwards, €8,000 per unit. For all renovation projects, the base subsidy rate is 30%.
Self-occupying homeowners receive a 20% speed bonus when replacing gas heating, biomass heating systems older than 20 years, gas floor heating, oil heating, coal heating, or night storage heating.
There is also a 30% income bonus for self-occupying homeowners with a taxable household income of less than €40,000. This means that in 2024, the maximum subsidy for solar thermal systems for the first housing unit is also 70%, which equals €21,000.
The speed bonus is staggered over time: until the end of 2028 → 20%, until the end of 2030 → 17%, until the end of 2032 → 14%, until the end of 2034 → 11%, until the end of 2036 → 8%. From 2037 onwards, the bonus will no longer apply.
Heating system replacement: oil/gas heating out, new biomass heating in
BRUNNER heating systems are proven and always state of the art. Beyond that, there are innovative heating concepts that, when combined with the BRUNNER heating centre, offer virtually limitless possibilities. A smart combination of a heat pump with a water-bearing stove is also possible. Especially in winter, this not only creates cosy moments by the fire but also saves money by supporting the heat pump at low temperatures.
Which heating system is right for my property?
By using renewable and climate-friendly fuels, you can make an important contribution to the energy transition. CO₂-neutral heating is possible with systems that operate at high efficiency and burn cleanly. Emission limits and efficiency levels have been set as technical minimum requirements for our boilers and heat pumps. Since we stay well below these limits, all of our heating products – from pellet and log wood boilers to heat pumps – are eligible for subsidies.
Heat pumps are best suited for new buildings, while pellet and log wood heating systems can be used in both new and existing homes. The choice also depends on whether you use radiators, underfloor heating, or wall heating, as each requires different flow temperatures. In addition, older buildings may be poorly insulated, have leaky windows, and therefore require more heating power (kW) than a modern low-energy or passive house.
Heating Pump
Suitable for: new builds*
Because they operate efficiently at low heating output and low flow temperatures in combination with surface heating systems. They are becoming increasingly popular as they use renewable energy, produce no CO₂ emissions, and generate multiple times the heat energy from just a small amount of electricity.
Product advantages:
- Small footprint (1 m²)
- Natural refrigerant R290
- Can use PV power
- Perfect complement to a water-bearing fireplace/stove
*In existing buildings, a heat pump can also be suitable if conditions such as flow temperature and heating output are right.
Pellet heating system
Suitable for: new builds and existing homes
Because it is just as convenient as an oil heating system, but runs on renewable, locally available fuel. With a pellet heating system, control, boiler cleaning, and ash removal are all fully automated.
Product advantages:
- Pellets are a regional and renewable fuel
- Can be combined with photovoltaics
- Solar thermal system or additional heat sources
- Fully automatic heating system
- Variable output range for optimal adaptation to the required heat demand
Log wood heating system
Suitable for: new builds and existing homes
A declaration of independence for anyone who can and wants to heat their home with their own wood. Cost-effective, using timber from private or local forestry.
Product advantages:
- Regional and renewable fuel
- Quick and easy sourcing
- Can be combined with photovoltaics, solar thermal systems, or additional heat sources
- Large cast iron filling door with door contact switch for safe operation
Conclusion: Which subsidy suits me?
| BAFA-Förderung BEG // EN | Steuerförderung | |
|---|---|---|
| I have a heating system that is at most 20 years old (pellets, firewood, gas, or heat pump) | ✗ | ✓ |
| I want to install a new heating system with solar thermal support | ✓ | ✗ |
| I do not want solar thermal or a heat pump for domestic hot water production for my new pellet or log heating system | ✗ | ✓ |
| I want to install a new heat pump | ✓ | ✗ |
| I need the financial subsidy as soon as possible | ✓ | ✗ |
| I want to keep the administrative effort as low as possible | ✗ | ✓ |
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