Particle.news

Germany Increases Funding for EH55 Energy‑Efficient New‑Build Scheme

The top-up aims to keep roughly 52,100 approved homes moving into construction to prevent a funding cut-off.

Overview

  • The Federal Ministry of Construction has increased the EH55 support pot after demand outpaced the originally planned €800 million, but the ministry did not disclose the exact additional sum.
  • EH55 loans are offered as KfW low‑interest credits and require buildings to meet the EH55 efficiency standard and to use 100% renewable heat, with oil and gas systems excluded.
  • Applications remain possible until the funding runs out or until the end of 2026, and applicants must hold a building permit at the time they apply.
  • Industry groups and housing associations say the top-up avoids an immediate funding gap and insist on predictable, continuous support; the GdW estimates the extra money is about €250 million.
  • Rising construction costs are increasing pressure on projects, with August data showing new‑build prices 5.5% higher year‑on‑year and notable jumps in roof and timber work that could affect project viability.