Heating subsidies: new conditions apply from July 21

For many condominium owners' associations (WEG), replacing the heating system is the largest project of the coming years, and the subsidy often helps decide whether it gets approved. Anyone planning right now should therefore know: KfW, Germany's state development bank, is restructuring its heating subsidy program. The rules are changing in the middle of the preparation phase.

What changes on July 21

KfW has scheduled a transition phase from July 9 to July 20, 2026. Applications under the previous conditions remain possible until July 20, 2026 at 8:00 p.m., provided a confirmation for the application has already been issued. From July 21, 2026, new subsidy conditions apply in the four main programs 422, 458, 459 and 522. For private individuals in residential buildings, the heating subsidy is program 458.

In qualitative terms, KfW names three changes:

• The income bonus is being extended in tiers.
• A new family bonus for households with minor children is being added.
• Technology-specific bonuses are being discontinued.

We deliberately do not quote specific rates here. KfW publishes the exact adjustments in its infographic on the heating subsidy, and that is where they are binding. Please check the currently valid subsidy rates directly with KfW before you calculate with amounts in your association or build a draft resolution on them.

Who files the application for common property

This is the point where things get stuck in practice, because the subsidy is not applied for from a single source. KfW separates two levels:

• For measures on common property, an authorized person files the application for the basic subsidy and, where applicable, for the efficiency bonus and the emissions reduction surcharge.
• Individual owners can apply for the climate speed bonus (Klimageschwindigkeitsbonus) and, where applicable, the income bonus only for their owner-occupied unit, via a supplementary application.

For measures on common property, the application therefore runs through the association. The person-related bonuses, by contrast, are tied to the individual owner and to owner-occupancy. This also explains why different owners can end up receiving different amounts even though everyone gets the same system. Exactly which bonuses remain available from July 21 is the part that is changing. That, too, is a question for KfW's current information.

What your association should prepare now

The mechanics lead to a very concrete task: without an authorized person, the association cannot file the application. So put the resolution and the power of attorney on the agenda in good time, instead of hunting for both once the heating contractor's quote is already on the table. While you are at it, clarify who takes on the role, for example the property management company. And tell the owners early on that owner-occupiers must file their supplementary application themselves. Otherwise this gets overlooked, because everyone assumes the management will handle it.

Which obligations apply to a heating replacement in the first place is explained in our guide on the Heizungsgesetz, Germany's Building Energy Act (GEG). If you do not want to look at the replacement in isolation, you will find the sensible order of measures in our guide on energy-efficient renovation.

Source: KfW, as of July 15, 2026. Subsidy conditions change. Please check the currently valid rates and requirements directly with KfW before filing an application.