Kfw programs for renovation and energy efficiency
The state gives everyone up to 50.000 subsidies for those who want to bring their property up to the latest energy standards. How it works? About the development bank KfW, the state credit institute for reconstruction. The KfW programs for refurbishment in particular pay off. But there are also other interesting subsidies if you want to equip and upgrade your property for the future. So also charging stations for electric vehicles or an efficient burglary protection are subsidized by the government for the property owner.
Money for free: KFW programs for refurbishment
Above all owners of old real estates profit enormously, if you use the KfW programs for reorganization. You can decide whether you only want to carry out individual measures or whether you want to carry out a complete renovation. It is important that at the end of the refurbishment work corresponds to the KfW standard energy efficiency. Currently you can get in total a credit of 120.000,- Euro received. From this the borrower gets up to 48.000,- Euro from the state – and only has to pay the remaining 72.Repaying € 000 with mini interest rates.
As individual measures, window renovation and facade insulation are subsidized by the KfW, as is conversion to a modern, energy-efficient heating system. KfW subsidized loans are available for these individual measures up to 50.000 Euro. According to the development bank's calculation, such a loan with a debit interest rate of 0.75 percent can come to an APR of minus 1.68 percent due to the subsidy. Similar conditions also apply to the purchase of renovated real estate.
Minimal interest rates for KfW programs for refurbishment
Because of the government guarantee KfW can offer, it can refinance on the capital markets at negative interest rates. While these negative interest rates can be passed on to the partner banks through which the builders get the loans. However, these will make an interest surcharge to earn on the loan. Nevertheless, such loans with bank interest surcharge are still very favorable. In addition, the KfW offers so-called repayment subsidies. Then the borrower must also pay back less money in the end than he has borrowed. This alone shows that the KfW programs for renovation are almost always worthwhile.
Even small energy efficiency measures are worthwhile
A grant for your in-house charging station
The expansion of electromobility is one of the most important measures on the German government's climate protection agenda. That's why KfW provides generous subsidies for the installation of charging stations. KfW grants 900 euros for each charging point that private individuals install on their property or garage. Charging stations with two charging points are subsidized with 1800 euros. However, there are some criteria to be met:
- the charging station must charge 11 kilowatts
- be installed in a location that is not accessible to the public,
- be powered 100 percent by green electricity,
- of the acquisition and installation costs must be at least 900 euros.
In fact, charging stations (wall boxes) can be found that meet the KfW criteria and ca. 500 euros. If you find a specialist electrician who can install the system for less than 500 euros, you'll end up paying next to nothing yourself. However, if the actual total costs then remain below 900 euros, there is nothing from KfW.
Measures for burglary protection are also subsidized
Thee KfW grants of up to 1.600 euros if you secure your property against burglars. These include, for example, "burglar-resistant" windows, doors or garage doors or an alarm system.
Important for all KfW programs: wait for the funding approval before you start with the implementation
Not only the application for charging boxes must be submitted and approved before purchase. This also applies to all complete renovations. So it makes sense to plan for enough money. Because you need time for cost estimates, talks with the KfW loan mediating bank or construction financing intermediary. Meanwhile, however, you can look for other, cheaper craftsmen and material costs.
For all projects, it is important to first secure funding before starting work. A subsequent promotion is not possible. As a rule, construction financing advisors or even tradesmen are well acquainted with what is subsidized by the state and how to apply for the funds. You can, of course, on the website of the KfW itself comprehensive information.
Also important: For a KfW loan, you always need the support of a bank or a construction financing broker. KfW does not grant loans directly to private individuals.
From July 2021, the KfW programs for renovation will change
The current program for energy-efficient refurbishment ends in June. From the 1. July several KfW programs for renovation are unified. The good thing is that the conditions will then improve in most cases. Then for the energy-efficient reorganization of existing houses even credits can instead of up to 120.000 euros now costs up to.000 euros can be applied for. In the best case, the borrower then only has to pay back half of the sum. Repayment subsidies for energy-efficient new buildings are then also new. Anyone who then builds or buys an "Efficiency House 40 Plus" can obtain a loan for it for a maximum of 150.000 euros and only has to pay back three quarters of this amount in the end.
Good advice – big savings: Take advantage of the experts' expertise
Anyone who wants to benefit from low-interest loans and grants should bring time with them. Only those who calmly explore their options, together with a construction financing expert, the optimal programs or. Discuss financing combinations and only then look for a bank – preferably one with extensive KfW expertise – will be able to extract maximum savings. Of course, this applies all the more the bigger the project is: z. B. the purchase of an existing property with subsequent comprehensive energy refurbishment. It is certain, who plans meticulously and comprehensively probes offers, can finance today so interest-favorably as never before in the history.
The state gives you money if you renovate an existing property to make it more energy efficient. The KfW programs make it possible.