A building permit must already be in place at the time of application, but construction must not have started yet. (Photo: © gehapromo/123RF.com)
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December 2025
Homeowners can now submit their applications for the federal government's temporary Efficiency House 55 Plus subsidy. Interest rates for KfW loans are significantly below market levels. Applications are processed on a first-come, first-served basis.
From now on, building owners can submit applications for the temporary Efficiency House 55 Plus Funding of the federal government. Support is provided. Construction-ready residential building projects in the Efficiency House Standard 55, provided they are powered entirely by renewable energy. Funding is provided through subsidized loans from the government. KfW Bank.
The initial effective interest rate for a loan with a 35-year term and a ten-year fixed interest rate is 2,84 percent. Annuity loans with a ten-year term and also a ten-year fixed interest rate are offered at approximately 1,94 percent effective interest. According to the Federal Ministry for Housing, Urban Development and Building, these conditions are significantly below current market levels.
The program operates on a first-come, first-served basis. It runs until the funding pool is exhausted. "First come, first served." The program's popularity is evident in the fact that just one day after its launch on December 17th, it was already fully booked. Applications have been submitted for 9.600 housing units. This represents a volume of 90 million euros out of the 800 million euros, according to the Committee on Housing, Urban Development, Construction and Local Government in the Bundestag.
With the new program, the federal government aims to activate construction projects that have been approved but not yet realized. "We are now investing EUR 800 million"So that the industry can get started and housing can be created that is not only more climate-friendly but also more affordable," he explained. Federal Minister of Construction Verena HubertzThe funding provides an important incentive to actually start construction after a building permit has been granted.
New buildings or the first-time purchase of residential buildings are eligible for funding. Up to €100.000 loan per residential unitMunicipalities can receive an additional subsidy of five percent. The prerequisite is that the buildings are constructed to the Efficiency House Standard 55 and that their heating supply comes 100 percent from renewable energy sources.
Fossil fuels such as gas or oil are excluded. Eligible energy sources include heat pumps, district heating, solar thermal energy, and biomass.
✔️ A building permit must already be in place at the time of application, but construction must not have started yet.
✔️ The funding is provided once and is limited.
✔️ The loan must be drawn down within twelve months; an extension of the drawdown period to up to 24 months is possible.
✔️ The program ends once the funds are exhausted.
Alongside the new funding, the ministry also improved the interest rates of existing programs. Furthermore, the funding conditions for the "Climate-Friendly New Construction in the Low-Price Segment" and "Young People Buying Old Homes" programs were adjusted to reach a wider range of construction projects.
Further information and application details can be found on the KfW website for residential buildings (279/289); Non-residential buildings (299) and Municipalities (498/499).
Source: Federal Ministry for Housing, Urban Development and Construction
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