KfW funding for heat pumps in apartment buildings - What is important now?

In our last blog post, we reported in detail about whether and how people who live in an apartment building can switch to a heat pump. In doing so, we highlighted the differences to heat pumps in single-family homes and explained the particular challenges and opportunities associated with installing them in an apartment building.

In apartment buildings, it is possible to install both centralized and decentralized heat pump systems.

Central systems are efficient because they centrally control the heat supply for the entire building. This can be particularly advantageous for larger building structures, as the installation and maintenance of a central system is often less complex. Decentralized systems, on the other hand, offer the advantage that they can be individually tailored to the needs of the individual residential units. This can be particularly useful if residents have different heating preferences or if the building is structurally structured.

The decision as to which system should be used depends on various factors. This includes building structure, residents' preferences, and costs. It is important to carry out a thorough analysis to find the best solution for each building. Further detailed information and helpful tips can be found in our blog post here.

Funding for apartment buildings available from May 28!

Another important point that we covered in our last blog post is the new BEG funding for apartment buildings, which comes into force at the end of May. This funding now also enables owners of existing apartment buildings to receive financial support for the installation of heat pumps or other environmentally friendly heating technology. These government grants are a great way to reduce investment costs and speed up the transition to greener heating solutions.

From the end of May, owners of existing apartment buildings (with more than one residential unit) and homeowner associations with joint ownership measures (WEG) in Germany can apply for BEG funding. This is an important step towards promoting the use of heat pumps in larger residential complexes and making a contribution to climate protection.

autarc funding aid for applying for funding in apartment buildings

In order to make optimal use of funding, the AUTARC software offers extensive support. With our software, you can easily check the possible funding for your customers and submit applications efficiently. Since the start of funding single-family homes, we have helped hundreds of heating companies help their end customers (the homeowner) to promote KfW. Find out more about our service and how we can help you use the funding for your heat pump projects: autarcs funding service.

Why are heat pumps being promoted in the first place?

From May 28, it will be possible not only for owners of owner-occupied single-family homes to apply for funding from KfW, but also for owners of existing apartment buildings and condominium owners' associations (WEG) with joint ownership measures. One can apply for the funding of the purchase and installation of a new and climate-friendly heating system.

Heat pumps are currently the most environmentally friendly heating technology available. They use renewable energy sources such as air, water or soil to generate heat and are therefore significantly more efficient and lower in emissions than conventional heating systems. This efficiency and environmental friendliness make heat pumps a key technology in the fight against climate change. By significantly reducing CO₂ emissions, they are making a significant contribution to achieving climate goals. More about this here.

Another advantage of heat pumps is their versatility. They can be used in various types of buildings, whether in single-family homes or in larger residential complexes. They are also able to perform both heating and cooling functions, making them a year-round solution for the indoor climate.

However, buying and installing a heat pump can be very expensive. In order to overcome this hurdle and promote the switch to more climate-friendly heating technology, the state is offering financial support in the form of subsidies. This government funding helps homeowners to reduce initial investment costs and make the transition to sustainable heating technology faster and more economical.

Since February 2024, subsidies for single-family homes can be applied for from KfW. From the end of May, owners of existing apartment buildings (with more than one residential unit) and condominium owners' associations (WEG) in Germany are now also eligible to apply for funding. This significantly expands access to funding and supports a wider implementation of heat pump technologies in different living situations.

The AUTARC software helps you to effectively check and apply for these possible subsidies for your customers. Our service makes it easier for you to calculate the eligible costs and ensures that all necessary requirements are met. In addition, we offer you a funding guarantee that ensures the success of your applications. Find out more about our comprehensive funding service here: autarc funding service.

From May 28, it will be possible not only for owners of owner-occupied single-family homes to apply for funding from KfW, but also for owners of existing apartment buildings and condominium owners' associations (WEG) with joint ownership measures. Funding can be applied for to buy and install a new, climate-friendly heating system.

How high are KfW subsidies 458 for apartment buildings?

The funding for a heat pump in an apartment building is divided into various stages in order to take into account the individual needs and structures of such buildings:

• The maximum eligible costs of 30,000 euros can be incurred for the first residential unit.
• For the second to sixth residential unit, the maximum eligible costs are 15,000 euros each.
• From the seventh residential unit, the maximum eligible costs are 8,000 euros each.

This means for instance: For an apartment building with 8 residential units, a maximum funding of a total of 121,000 euros can be expected.

This phased funding ensures that financial resources are used efficiently to support both smaller and larger projects and to facilitate the transition to environmentally friendly heating solutions.

These conditions must be met for a heat pump to be eligible for funding

For a heat pump to be eligible for funding, it must meet certain efficiency requirements. These requirements for efficiency and noise emissions are expected to continue to increase in the coming years. A heat pump must therefore meet increasing standards not only now but also in the future.

Only heat pumps that are used for heating are eligible for funding. This means that heat pumps that are only used for hot water heating are excluded from funding. This distinction is important because heating heat pumps can significantly contribute to reducing CO₂ emissions. Since 2024, the calculated annual performance factor (JAZ) of the heat pump must be at least 3.0. This figure indicates how efficiently the heat pump works in relation to the electrical energy consumed.

Another important factor is “seasonal space heating energy efficiency” (ETA). This key figure measures the efficiency of the heat pump throughout the year and takes seasonal fluctuations into account. One List of eligible heat pump systems, which meet these efficiency standards, are available from the Federal Office of Economics and Export Control (BAFA). This list is regularly updated to ensure that only the most efficient and environmentally friendly devices are promoted.

Technical requirements for funding must also be observed. For example, a separate heat flow and electricity meter is required. This meter helps to measure the exact energy consumption of the heat pump and ensures that the specified efficiency figures are also achieved in practice. A heat load calculation must be carried out to determine how much heating capacity the building requires. This calculation is essential for selecting the appropriate heat pump and ensures that the heating system is optimally tailored to the needs of the building. In most cases, hydraulic balancing of the heating system is also required. This adjustment ensures that the heat is evenly distributed throughout the building and prevents individual radiators from being oversupplied or undersupplied. Information on calculating the room-by-room heating load can be found here.

In order to be eligible for funding, at least 65% of the living space must be heated with renewable energy after the heat pump has been installed. This regulation aims to maximize the use of renewable energy in residential buildings and to further reduce CO₂ emissions. Meeting this requirement is an important step on the way to a sustainable and environmentally friendly energy supply.

Requirements for heat pump funding at a glance

For a heat pump to be eligible for funding, it must meet certain criteria:

1. Efficiency requirements: Heat pumps must have a specified efficiency. These requirements for efficiency and noise emissions are expected to continue to increase in the coming years.
2. Utilisation for heating: Only heat pumps that are used for heating are eligible for funding. Heat pumps that are used exclusively to heat water are not eligible for funding.
3. Annual performance figure (JAZ): Since 2024, the calculated annual performance factor (JAZ) of the heat pump must be at least 3.0.
4. Space heating energy efficiency (ETA): An important factor is “seasonal space heating energy efficiency” (ETA). A list of eligible heat pump systems is available from BAFA.
5. Technical requirements:
   • A separate heat flow and electricity meter is required.
   • A heat load calculation must be carried out.
   • In most cases, hydraulic balancing of the heating system is necessary.
6. Renewable energy: After installing a heat pump, at least 65 percent of the living space must be heated with renewable energy in order to be eligible for funding.

Conclusion

KfW funding offers attractive support for the installation of heat pumps in apartment buildings. This environmentally friendly heating technology can be used both centrally and decentrally, depending on the building structure and occupant preferences. From the end of May, owners of apartment buildings and condominium owners' associations will also be eligible to apply for subsidies, which will make it easier to switch to more climate-friendly heating technologies.

The new BEG funding, which can also be applied for for apartment buildings since the end of May, helps to reduce high investment costs and accelerate the transition to sustainable heating technologies. With AUTARC software, you can easily check and apply for funding. Take advantage of this opportunity to benefit from government subsidies and promote sustainable heating solutions.

Find the right heat pump with autarc!

Are you looking for a reliable way to find the perfect heat pump for your building? Then rely on the precision of room-by-room heating load calculation with autarc! Our advanced software makes the complex calculation and selection easy to understand and guides you precisely to the optimal heat pump solution. Regardless of whether you are a specialist or are working on the subject for the first time, autarc provides you with all the tools you need.

Discover the environmental benefits of autarc! We help you to precisely determine the heating load of your building and to precisely size your heat pump. With our software, you can find funding for your project and apply for it directly. Start your journey to a more efficiently heated home and discover the environmental benefits of autarc.

click here to find out more about autarc and get started right away.

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*Image source: Viessmann