Overview
- 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.