Overview

• Homeowners are hurrying to apply and install to secure current KfW grants, with approvals by July 2025 nearly matching the total for all of 2024 and providers warning of longer wait times.
• Markus Söder has proposed cutting the maximum subsidy by at least half, a move the SPD and industry groups say would sharply weaken demand.
• The current scheme offers a 30% base grant plus stackable bonuses up to 70% of eligible costs, capped at €21,000 for heat pumps or €23,500 for compliant biomass systems, and applications must be filed via KfW before awarding contracts.
• Bavaria has received an outsized share of support—about €571 million in 2024 and €411 million from 30,500 approvals in the first half of 2025—heightening local job concerns in a state with roughly 5,500 heating-industry employees.
• Critics point to average German installation costs of about €36,000—roughly double France or the UK—and some market voices argue for predictable, gradual reductions rather than a sharp cut.