Fundraising kicks off for heating system replacements.

To date, there have been 27,000 submissions. - Heating replacement funding initiative launched.

Starting now, more organizations can request government financing to replace old gas and oil furnaces with more environmentally friendly alternatives. The procedure is also possible for self-governing owners of multi-unit houses and housing cooperatives with central heating, as per the funding bank KfW and the Federal Ministry of Economics.

Since February 27th, owners of single-family homes who reside there have been eligible for support. Nearly 27,000 applications have been submitted to the Ministry of Economics thus far. Personal landlords and landladies can apply starting in August, in addition to owners in housing cooperatives who want to update the heating in their own unit. This also applies to applications for non-residential buildings.

The amount of financing varies based on several conditions. You could receive up to 70% financing - depending on the terms. For both residential and commercial buildings, 30% is provided. Furthermore, there's a 5% efficiency bonus for heat pumps that use water, soil, or natural refrigerants as a heat source.

Starting in 2028, a speed bonus of 20% will be offered for early replacement of old gas and oil furnaces, as well as night storage heaters and outdated biomass heating systems for self-governing owners. Following that, the speed bonus will shrink every two years by 3 percentage points, commencing with 17% from January 2029. For owners who earn up to 40,000 euros in taxable home income and live in their home, there's a 30% income bonus. For biomass heating systems that meet a specific dust emission limit, a grant of 2,500 euros will be offered.

Homeowners who've received a commitment for the heating exchange from KfW can apply for a low-interest KfW funding loan at a bank - typically their own bank. Those who started construction before August 31st can also submit a funding application afterward, up to November 30th.

The procedure has received criticism from the Real Estate Association. "The already complicated funding is made even more confusing by the staggered application commencement." The owners' association also noted that the money will only be distributed starting in September. Upon success, a commitment is given at the time of application via the KfW portal, according to the Ministry, within a few minutes. The Consumer Central Federation (vzbv) applauded the procedure, describing it as faster and more consumer-friendly.

The industry association Central Association of Sanitary, Heating, and Air Conditioning (ZVSHK) is urging interested parties to take necessary action. A supply crunch with manufacturers and craftsmen is no longer an issue, asserted CEO Helmut Bramann. Those who delay their plans for municipal heating planning for finalization risk new requirements. "Thus, act now, even in light of potentially narrowing budget spaces in future federal budgets. Who knows how long the current excellent funding environment will last."

The funding must be secured beyond 2024, urges energy and construction expert Thomas Engelke from the vzbv. "Since the budget funds for this are inserted into the federal budget each year, the Federal Minister of Finance must ensure this." He cautioned against consumer uncertainty in case of another funding stop or a reduction in funding. Grants are only available as long as the funding isn't used up.

"We assume that the funds are running out," said a spokeswoman for the Federal Ministry of Economics. For the current year, the ministry plans approximately 16 billion euros for federal funding for energy-efficient buildings (BEG), which also includes other renovation measures such as roof insulation or window replacement.