Improved funding conditions in Germany spur energy efficient refurbishment of buildings

The German government’s funding programme to improve energy efficiency in buildings appears to be a resounding success, Klaus Stratmann reports in Handelsblatt. The number of applications for the various building efficiency initiatives nearly doubled last year compared to 2019, rising from 326,000 to 600,000, according to the economy ministry (BMWi). Making buildings more energy efficient is a major goal of the government’s climate protection policy and the improved funding conditions are proving successful, Stratmann writes. “'The improvement of funding in the building efficiency programmes is good for the climate and good for the economy, especially in times of corona,” economic affairs minister Peter Altmaier said in a statement. “It has achieved its goal and triggered a surge in investments in energy efficiency and the use of renewable energy sources in the heating market.” The subsidy-related CO2 savings will double compared to previous studies to 14 million tonnes by 2030, according to Altmaier. "This is an important contribution to achieving our climate goals," he added.

The number of applications for the installation of heating systems based on renewable energy sources rose dramatically from approximately 76,000 in 2019 to more than 280,000 in 2020, according to the BMWi. Almost two-thirds of applications last year were part of complete building renovations, while 110,000 were for the replacement of oil heating systems with low-carbon systems. The huge jump in applications for funding by state-owned development bank KfW is attributable to the government’s massive increase in funding and improved funding conditions for applicants, Strattmann writes. The government increased funding for energy efficiency refurbishments from 1.85 billion euros in 2019 to 8.6 billion euros in 2020.