Germany reduces funding rates for energy counselling as demand reaches new heights
Clean Energy Wire / Münchner Merkur
The number of applications for state support to pay for counselling on how to improve energy efficiency in residential buildings reached a new high of 80,000 in the first six months of 2024, causing the government to make cuts to stay within the budget for the scheme, the economy ministry (BMWK) said. Starting from 7 August, funding rates will be cut from 80 percent to 50 percent, with maximum subsidy amounts per funded consultation slashed by 50 percent compared to previous levels. Until now, the maximum stood at 1,700 euros for residential buildings with three or more units. There were 130,600 applications for energy counselling during 2023. The economy ministry says the cuts will mean as many parties as possible will still be able to receive funded energy advice in the future and the programmes can be continued at a good level. The Münchner Merkur reports that a spokesperson for the ministry said: “Applications that have already been submitted will receive funding according to the old funding rate, regardless of when the approval comes.”
Funded energy consultations are offered to private consumers, companies, municipalities and NGOs. They offer very specific information and orientation for the energy-efficient renovation of buildings. The consultations lay the foundation for targeted steps towards greater energy efficiency, the use of renewables, and the move away from fossil fuels. Merkur reports that the consultations are an important first step, especially for private consumers, to transform a building to be more energy efficient.
A ruling by Germany’s highest court in November 2023 declared that an integral part of the government’s funding plans for climate programmes was unlawful. Funding for energy efficiency counselling was already cut by 20 million euros in the aftermath of the ruling. The government’s draft budget for 2025 is also undergoing scrutiny after finance minister Christian Lindner, from the pro-business Free Democrats (FDP), commissioned an expert opinion that concluded once again the budget could violate constitutional rules.
