Germany Approves Thousands of Applications for Climate-Friendly Heating Subsidies
One hundred days after the launch of the new subsidy for transitioning to climate-friendly heating, the Kreditanstalt für Wiederaufbau (KfW) has approved 34,000 applications. The total funding reserved for this amounts to 507 million euros. This initiative was introduced by the German government to reduce greenhouse gas emissions by promoting the increased use of renewable energies in heat supply.\Heating subsidies are crucial for the success of the energy transition, stated Katharina Herrmann, a board member responsible for domestic funding operations at KfW. The building sector is responsible for about a third of emissions in Germany, making the switch to climate-friendly heating systems imperative.\The subsidy program offers financial assistance for replacing old heating systems with climate-friendly options. The basic subsidy amounts to 30 percent of the eligible total costs, up to 30,000 euros for single-family homes. The investment subsidy can reach a maximum of 70 percent, providing up to 21,000 euros in funding.\Applications for heat pumps are leading the way in approvals, followed by biomass heating systems. Currently, nearly 90 percent of approvals are for self-users in single-family homes. The process of applying for the subsidy has been phased out to manage the workload effectively.\The KfW also provides low-interest supplementary loans for costs not covered by the grant, with an interest rate between 0.01 and 1.99 percent, depending on the loan term.\The allocation of funds for the subsidy program is considered sufficient, according to KfW board member Herrmann. The application process is managed through digital means for efficiency, and applicants are required to upload digital evidence six months after the start of their application group to receive the grant.\The Federal Funding for Efficient Buildings (BEG) governs the entire process, including other renovation measures like insulating roofs or replacing windows. Around 1.6 billion euros have been earmarked for heating system replacement and renovation measures for the current year.\Despite the significant progress and interest in the subsidy program, the timeline allows for projects to be started until August 2024, with applications open until November, ensuring a smooth transition to climate-friendly heating options in Germany.
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