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With a reform of the multi-billion government building subsidies, the federal government intends to focus on renovation in the future. At the same time, subsidy rates for the installation of heat pumps, for example, will be reduced. The aim is for as many people as possible to benefit from the support program so that they can replace “energy guzzlers” such as old windows, doors and gas heaters and renovate houses and apartments, as the Ministry of Economic Affairs announced on Tuesday.

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The background is also the throttling of Russian gas supplies: “Using less energy is the cheapest and most efficient contribution to more independence and climate protection and helps to save on energy costs,” said Economics and Climate Protection Minister Robert Habeck (Greens).

The subsidy rates will be reduced by five to ten percentage points. Examples: According to the ministry, you used to get a subsidy of up to 30,000 euros for the installation of a heat pump, after the reform up to 24,000 euros. In the past, you could get up to 15,000 euros for a window replacement, after the reform it was 12,000 euros.

“In the future, the individual will receive slightly less funding than before, but many people can benefit from the funding programs,” explained Habeck. This is indicated in times of high energy costs.

“Most people live in older houses. Renovating now, replacing windows, throwing out the gas heating – that helps to save costs and goes hand in hand with climate protection,” Habeck continues. The effect on energy savings and climate protection is around 4.5 times higher in energy-efficient building refurbishment than in new construction.

Specifically, it is about a reform of federal funding for efficient buildings and about billions of euros from the climate and transformation fund. According to the ministry, annual subsidies of 13 to 14 billion euros are planned, of which around 12 to 13 billion euros are for renovations.

The changes regarding the renovations are to be published in the Federal Gazette on Wednesday and come into force in a graduated order on Thursday. From July 28th, new funding conditions will apply to complete renovations and the ongoing new construction funding, and from August 15th new funding conditions will apply to individual renovation measures.

The new construction subsidy is to be largely switched to low-interest loans – and in a further step to be fundamentally redesigned by the Ministry of Construction in close cooperation with the Ministry of Economic Affairs for the year 2023.