Overview
- KfW relaunched its application portal under the new BEG rules on Tuesday, July 21, 2026, keeping a 30% basic grant but cutting the maximum eligible cost per housing unit from €30,000 to €28,000.
- The income bonus is now tiered so lower earners get bigger top‑ups: 40% for taxable income up to €30,000, 30% up to €40,000, and 10% up to €50,000, with a €10,000 family allowance that raises those thresholds for households with minors.
- Several add‑ons were removed or reduced immediately: the 5% efficiency bonus and the biomass emissions surcharge are scrapped, the Klimageschwindigkeitsbonus falls to 16% now and will drop by four percentage points every six months from February 1, 2027 until it ends on August 1, 2028.
- Transition rules give limited relief for projects already underway because a KfW 'Bestätigung zum Antrag' stays valid for six months but unused BAFA technical project descriptions lost validity after July 20, 2026.
- The changes are driven by budget limits and industrial policy: eligible cost caps will shrink stepwise to €22,000 by 2030, an EU‑made heat‑pump value‑added bonus is planned for Q1 2027 while non‑EU units face lower base support, and trades warn the cuts will raise short‑term costs and planning uncertainty for installers and households.