On 1 January 2016, the Federal Ministry for Economic Affairs and Energy launched its new Energy Efficiency Incentive programme (APEE), under which funding will be provided for the modernisation of heating and ventilation systems in the home. It was introduced instead of previous efforts to provide tax breaks for the energy-efficient retrofitting of buildings. The aim of the APEE is to create a stimulus for innovation and investment in efficient and renewables-based heating systems in the home. Under the APEE, a total of €165 million in funding will be available each year for a period of 3 years. This funding will be provided in the form of low-interest loans and grants.

The Energy Efficiency Incentive programme will build upon and strengthen the range of funding schemes that is already available. Home owners who would like to replace their heating system or install a ventilation system are eligible to apply for additional funding. For the very first time, support will also be provided for efficient combi-solutions.

The heating package will make funding available for the installation of particularly efficient heating systems, including measures to optimise the heating system as a whole (including radiators and pipes). This serves to promote a changeover to more efficient gas-based heating systems or heating systems based on renewables. The support provided for the installation of ventilation systems, combined with modernisation of the building envelope, will also help prevent damage occurring to buildings (such as mould) and for improving the indoor climate.

Persons wishing to install a heating system that runs on fossil fuels can apply for funding under the ventilation and heating package by using the same application procedure as under the KfW Energy-Efficient Modernisation programme (in German). Funding is available either in the form of a grant or as a loan. Under the heating and ventilation package, grants, for example, will be raised from 10% to 15% of the investment costs. Funding for fuel cell heating systems is available under the heading Energy-efficient Construction and Retrofitting - Fuel Cell Grant (in German). This scheme complements the existing funding programmes on energy-efficient construction and retrofitting (the Federal Government's CO2 Building Modernisation Programme). Private home owners have been able to apply for funding under the scheme since August 2016. In July 2017, the scheme was extended to non-residential buildings, meaning that the programme is now also open to small and medium-sized enterprises (SMEs), contractors, charities and local authorities. In view of the high investment costs for fuel-cell heating systems compared with conventional heating appliances, we want to assist the market roll-out.

Further information on the specific terms that apply can be found at www.kfw.de (in German). Alternatively, you can call the KfW Infocenter on freephone 0800 5399002.

Persons wishing to install a heating system that runs on renewable energy can apply for funding under the ventilation and heating package by using the same application procedure as under the Market Incentive Programme (MAP) for renewable energies in the heat market. Those applying for funding under the heating package are also eligible to apply for a further 20% of the level of the funding amount that has previously been granted for heating-system replacements under the Market Incentive Programme (in German), and for a further €600 for heating system optimisation. The legal framework for this is provided by the Guidelines Promoting the Accelerated Modernisation of Heating Systems Using Renewable Energies. Further information on the specific terms that apply can be found at www.heizen-mit-erneuerbaren-energien.de (in German). Alternatively, you can call the hotline set up by the Federal Office for Economic Affairs and Export Control at +49 (0)6196 9081625.

In order to promote investment, APEE will also include an extensive efficiency campaign.