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Attractive subsidies for renovation measures in 2024

Buyers of real estate are obliged to renovate their new property within two years of the purchase date. As there are government subsidies available for renovation work, buying a property in need of renovation can be a bargain. However, what is worthwhile depends on the individual case. Here you will find an overview of the current government renovation subsidies.

On January 1, 2024, the Federal Funding Guideline for Efficient Individual Building Measures (BEG EM) came into force. The existing funding programs for energy consulting (EBN and EBW), federal funding for efficient heating networks (BEW), and funding for energy and resource efficiency in industry (EEW) will continue to be implemented in accordance with the provisions of the provisional budget.

From January 19, 2024, it will again be possible to submit applications for the BEW program and energy consulting and have them approved. Applications for the EEW can be resubmitted after the guidelines have been updated, which is expected to be on February 15, 2024.

Renovation subsidies for individual measures at a glance

The federal subsidy for efficient buildings – individual measures (BEG EM) provides the following grants for individual measures:

  • Measures on the building envelope (e.g., exterior walls, roof surfaces, replacement of doors and windows): 20 percent
  • Building services (e.g., installation, replacement, or optimization of ventilation and air conditioning systems): 20 percent
  • Renewable energies for heating (e.g., heat pumps, biomass systems, hybrid heating systems, or solar thermal systems): 20 to 45 percent
  • Measures to optimize heating (e.g., hydraulic balancing or replacement of heating pumps): 20 percent

Energy-efficient renovation without loans

Energy-efficient renovations, from insulation to heating system replacement, are costly. For this reason, the Federal Ministry for Economic Affairs and Climate Protection (BMWK) offers homeowners an attractive investment subsidy through the Federal Funding for Efficient Buildings program. Individual Measures (BEG EM). This applies to individual renovation work on single-family and two-family houses or condominiums as well as non-residential buildings, including those listed as historic monuments. The subsidy rate varies between 20 and 45 percent of the eligible expenses for each measure, including necessary ancillary work such as the removal and disposal of old heating systems. For residential buildings, the subsidy is limited to a maximum of €60,000 per residential unit.

In addition, applicants can apply to the Federal Office for Economic Affairs and Export Control (BAFA) for funding for specialist planning and construction supervision if they are implementing individual measures. Renovations carried out in accordance with an individual renovation roadmap (iSFP) for complete renovation are eligible for additional funding of five percent.

Consulting is key

It is advisable to take advantage of the "Federal funding for energy consulting for residential buildings (on-site consulting, individual renovation roadmap)" provided by the BMWK. You should seek comprehensive advice from a certified energy consultant right from the start.

When applying for energy consulting, please note that the building application or building notification for the residential building in question must have been submitted at least ten years before the date of application for renovation. The application for energy consulting is submitted to the BAFA by the certified energy consultant.

Would you like to know how much property you can afford if you still need to renovate, or how much a property in need of renovation is worth? Contact us! We will be happy to advise you.

 

Note

For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.

Photo: © Wordliner/Image created with OpenAI's DALL·E.

Many factors play a role. The amount of the investment costs, changes in the residential area, the time factor, etc. What are the best overall consequences to expect?

Which is better: energy-efficient retrofitting or a new property?

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In 2025, semi-detached houses will make a remarkable comeback in the real estate sector, captivating both buyers and investors alike. This type of construction not only offers an economically attractive solution, but also a versatile adaptation to the changing needs of society. Whether for young families looking to get their foot on the property ladder or older couples who prefer a manageable living space in a neighborhood with like-minded people, semi-detached houses offer a flexible living solution with numerous advantages. It is also important to note that semi-detached houses are a more cost-effective alternative to single-family homes without compromising on comfort and quality. As they are often integrated into urban development projects, they offer access to comprehensive community facilities and excellent infrastructure. This not only improves the quality of life for residents, but also increases the resale value of the properties. In today's world, where sustainability and efficiency are key, semi-detached houses are the future-oriented choice for responsible property buyers.

Selling your home made easy: The most effective strategies for 2025

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