After 100 Days of New Funding, KfW Evaluates Positively in Heating Act
The government-run KfW development bank has made progress 100 days after introducing its new funding initiatives for upgrading heating systems. The bank stated that by the end of May, they had received approximately 34,000 grant applications for replacing outdated heaters. They have allocated 507 million euros exclusively for clients.
In December, the government supported these efforts as part of the controversial Heating Act. Every homeowner can receive a 30% subsidy, and an additional 30% is set aside for low-income owners residing in their homes. There's also a "climate speed bonus" of 20%, but it gradually decreases over time. These factors can combine, resulting in up to 70% funding.
Since February 27, homeowners occupying single-family homes have been able to apply for funding, as long as they reside there. Starting May 28, owners of self-occupied apartments in multi-family houses and housing cooperatives have also been allowed to apply. Finally, by the end of August, qualifying owners of rental properties were added as a group.
KfW reports that the online application process is functioning smoothly. "As long as applicants provide complete documentation and a deserving project, we electronically approve the funding agreement within minutes," stated KfW Board Member Katharina Herrmann. "This ensures the client instantly knows about the financial support for their project."
If approved, consumers have 36 months to install a heat pump or another viable heating system.
Read also:
- KfW's positive evaluation of its performance under the Heating Act, initiated 100 days prior, is partly due to the large number of interim balance sheets showing the successful completion of heating system upgrades, funded partially by grants from KfW.
- As part of the promotional efforts for the Heating Act, KfW has launched an intensive campaign encouraging people to submit their grant applications before the end of the fiscal year, offering an opportunity for early applicants to benefit from additional funding days before the deadline.
- Following the successful execution of the Heating Act, KfW plans to assess the effectiveness of the initiative after 180 days and present their findings to the German government, advocating for an extension of the funding period or the implementation of similar programs in other areas requiring environmental improvement.
