Climate-friendly renovation: subsidies in greater demand than planned

Despite the climate policy rollback, the trend towards installing heat pumps and energy-efficient renovation of houses remains unbroken: the budget item for federal funding for energy-efficient buildings (BEG) in the Climate and Transformation Fund (KTF) is expected to be overrun by 1.1 billion euros in 2026. This emerges from a communication from the Federal Ministry of Finance to the Bundestag Budget Committee. The KTF is a federal subsidiary budget that has its own economic plan and is financed, among other things, from income from emissions trading. It is the federal government's central instrument for climate-neutral restructuring.

When the 2026 budget was passed, “the increase in the number of applications to the BEG was not foreseeable,” according to the letter from the Federal Ministry of Finance. The budget item for the promotion of energy-efficient buildings provides for expenditure of almost 12 billion euros for 2026. In 2025 it was 12.8 billion euros, in 2024 even 15.3 billion euros.

The notification of the “extra-planned commitment authorization” (ÜPL) from the Federal Ministry of Finance prevents a funding stop from occurring. Applicants who have not yet received a funding commitment for 2026 do not have to fear that they will no longer receive approval because the budget item has been overdrawn. The necessary funds flow from other areas of the climate and transformation fund, such as budget items that have not been fully utilized.

The Greens are in favor of the funds being made available for funding. They demand that the federal government plan realistically from the start in the future. “The additional funds are right and necessary,” says Green Bundestag member and budget politician Katrin Uhlig. “The demand for efficient buildings and climate protection is there.” However, Federal Minister of Economics Katherina Reiche (CDU) must plan reliably and adequately provide funding on a long-term basis instead of constantly adding additional funds at short notice. “Anyone planning a renovation today needs security – no fussing over funding,” she emphasizes.