KfW Reports Surge in Heating Subsidy Applications Following Climate Law

The German state-owned bank approved €3.6 billion for eco-friendly heating systems, but the future of the law remains politically contested.

The KfW approved 248,000 heating subsidy applications by January 31, 2025, totaling €3.6 billion, primarily for heat pumps.
The surge in applications follows the enactment of the Building Energy Act, which promotes climate-friendly heating and took effect retroactively from January 1, 2024.
The law, championed by Economy Minister Robert Habeck, faces opposition from the Union, which has vowed to repeal it if elected.
KfW disbursed €112.8 billion in total funding in 2024, slightly exceeding the previous year's amount, with heating subsidies contributing significantly to the increase.
Despite political uncertainty, KfW assures that approved heating subsidies will be honored regardless of potential policy changes.