This initiative is part of the 'Federal Funding for Efficient Buildings' (BEG) program, which is set to continue under preliminary budget management to meet all legal obligations.

Households with low to moderate incomes can benefit from a funding rate of up to 70 percent for these heating system replacements.

Applicants can generally rely on their approval unless false information was provided during the application process.

In 2024, the KfW bank received a total of 227,000 applications for these subsidies, with nearly all applications approved immediately.

Since February 2024, homeowners of single-family houses have been able to apply for state funding to replace old gas and oil heating systems with renewable alternatives.

Despite the increased interest in applications, heat pump sales in 2024 fell by 46% compared to the record year of 2023, largely due to rising energy prices.

Interest in the funding has surged, with 35,800 applications submitted in January 2025 alone, primarily for heat pump installations.

Since May 2024, both owner-occupiers of single-family homes and landlords of multi-family homes have been eligible to apply for these subsidies.

The funding program's stability is assured despite potential government changes following federal elections, as it can only be revoked by future government decisions.

The German Ministry of Economics has confirmed that funding for heat pumps will continue as part of the BEG program.

From May 2024, private landlords and homeowners' associations with central heating systems can also apply for these subsidies.

The funding is linked to the 'Heating Law', which requires that new heating systems installed from 2024 operate at least 65 percent on renewable energy.