Differences between BAFA individual measures promotion and KfW standard efficiency house promotion

Energy efficiency is an important topic for homeowners and property managers. It can not only help protect the environment, but also enable significant cost savings for homeowners. In Germany, there are various funding programs to improve the energy efficiency of buildings. In this blog post, we will look at the differences between the BAFA individual measure funding and the KfW standard efficiency house funding.

BAFA Individual Measure Funding

The BAFA individual measure funding is part of BEG EM (Federal funding for efficient buildings – individual measures). This funding covers a variety of energy-related renovations and improvements, focusing on specific improvements to a property. It typically includes things like optimizing the heating system, installing heat pumps, insulating individual parts of the building, or installing photovoltaic systems. This type of funding is helpful if you want to improve specific aspects of your building without carrying out a complete energy-related conversion.

The funding is provided in the form of a grant, which can range from 10-40% of the eligible expenses, depending on the type of measure and the specific context. Planning and construction management can be funded up to 50%.

KfW Standard Efficiency House Funding

In contrast, KfW efficiency house funding is more comprehensive and aims to improve the overall energy profile of a building. This funding supports measures that bring the building to a state that meets or exceeds certain efficiency standards (e.g. KfW Efficiency House 55, 40). This could involve insulating the entire building, replacing windows, installing modern heating and cooling systems, and much more. This type of funding is suitable if you are planning extensive renovations and want to bring your house up to the latest technological standards.

KfW supports measures that achieve improved energy efficiency. These measures can include both technical improvements and comprehensive renovations.

The funding can be granted either as a low-interest loan with a repayment subsidy or as an investment grant, depending on the level of KfW efficiency house achieved. The efficiency house level determines the amount of the repayment subsidy, which ultimately reduces the amount to be repaid.

Conclusion

The choice between BAFA individual measure funding and KfW standard efficiency house funding depends heavily on your individual needs and the specific characteristics of your building.

If you only want to make specific improvements to your building, such as replacing your heating system, installing a heat pump, or renewing windows, BAFA individual measure funding may be a good choice. It offers a wide range of eligible costs and can significantly support you in financing these measures.

However, if you are planning a comprehensive energy-related renovation of your building and want to achieve the level of a KfW efficiency house, KfW standard efficiency house funding may be more suitable. It provides more comprehensive support for extensive renovation projects and can help increase the long-term energy efficiency and value of your building.

It is important to thoroughly inform yourself before deciding on a specific funding program and, if necessary, seek professional advice. A well-founded decision can help you make the most of the available funding opportunities and optimally improve the energy efficiency of your building.

At Purpose, we help you make the right decision. Contact us for a non-binding initial consultation!