Advice for heating system symbolizes energy efficiency incentive program; Source: Matthias Buehner

© Matthias Buehner

On 1 January 2016, the Federal Ministry for Economic Affairs and Energy will launch its new Energy Efficiency Incentive programme which will provide support for the modernisation of heating and ventilation systems in the home. The aim of the programme is to create a stimulus for innovation and investment in the energy transition in household heating. A total of €165 million will be available each year for a period of 3 years, provided in the form of low-interest loans and interest subsidies.

Federal Minister for Economic Affairs and Energy Sigmar Gabriel said: "The launch of our heating and ventilation package marks the beginning of an extensive campaign to modernise household boilers. By creating new incentives for innovation, we are seeking to really speed up extensive modernisation work. This will enable further energy and cost savings to be made and will bring down carbon emissions quite considerably."

The Energy Efficiency Incentive programme will build upon and strengthen the range of support measures 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 support. 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 room climate.

Applications for support for the ventilation and heating package for persons wishing to install a heating system based on fossil fuels can be made using the long-established application procedure part of the KfW Energy-Efficient Modernisation programme, either in the form of a grant or a loan. Grants for the heating or ventilation package, for example, will be raised from 10% to 15% of the investment costs. Further information on specific terms that apply can be found at Alternatively, you can call the KfW Infocenter on freephone 0800 5399002.

Applications for support for the heating package for persons wishing to install heating systems based on renewables can be made using the time-tested application procedure part of the market incentive programme to promote measures to use renewables in the heating market. Those applying for 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, and for a further 600€ for heating system optimisation. Further information on specific terms that apply can be found at Alternatively, you can call the hotline set up by the Federal Office for Economic Affairs and Export Control on 06196 9081625.

The modernisation campaign will not only consist of investment support available under the Energy Efficiency Incentive Programme, but will also include information on products, advisory services, and an educational drive.

Further information concerning eligibility can be found at, and

To find out more about current German energy policy, please consult our fortnightly Newsletter "Energiewende direkt".