Federal government promotes sustainable residential buildings


Lerato Khumalo

Anyone who builds sustainably can receive state funding. Builders receive a maximum grant of 150,000 euros.

New rules for the funding of new buildings will soon apply to builders in Germany. According to the federal government’s plans, builders can receive a maximum funding amount of 150,000 euros per unit for particularly sustainable residential buildings. Climate-friendly residential buildings without a sustainability quality seal will therefore receive funding of up to 100,000 euros per residential unit.

This is evident from key figures from the Federal Ministry of Construction. This involves funding through low-interest loans. The interest reduction is up to four percent per year of the loan amount, measured against standard market conditions.

“Climate-friendly construction is no longer an optional decision, but a must. Anyone who builds today as they did in the past to save money is harming the climate and their wallet through horrendous additional costs,” explained Federal Construction Minister Klara Geywitz (SPD).

Specifically, the federal government is providing 750 million euros annually to support the construction and initial acquisition of climate-friendly residential and non-residential buildings that meet the energy standard of an Efficiency House 40 and fall below specific limits for greenhouse gas emissions. Greater support is available for buildings that also achieve the Sustainable Building quality seal.

Investors, cooperatives, companies and private individuals are eligible to apply for the low-interest loans. Applications can be submitted to the state development bank KfW from March. Municipalities and districts also receive investment grants for the construction of apartments, daycare centers or schools, for example.

Geywitz recently announced a new home ownership subsidy for families starting in June. Families with an annual income of up to 60,000 euros plus 10,000 euros per child are eligible. 350 million euros per year are available for this KfW program with low-interest loans. The total volume of new construction subsidies is 1.1 billion euros.