Money gone after just a few hours: Huge run on subsidies for energy-saving houses

Created: 04/21/2022 05:06

Only a few hours after the start of a new state subsidy for energy-saving new buildings at KfW, there is already another application freeze.

© Frank Rumpenhorst/dpa

The interest in the new government funding for energy-saving new buildings is great - too great.

The one billion euros made available have already been used, reports KfW.

Berlin - That happened quickly: Just a few hours after the start of new government funding for energy-saving new buildings at KfW, there was already a freeze on applications.

The funding pot, capped at one billion euros, has been exhausted, as the Federal Ministry of Economics announced in Berlin on Wednesday.

According to KfW, there was an enormously high demand.

Specifically, it is about the new construction subsidy for the Efficiency House (EH) 40. This means that the building uses 40 percent of the energy that a standard house needs.

KfW: Habeck warned that the budget could quickly be exhausted

The Federal Ministry of Economics announced at the beginning of April that house builders can submit new applications for an Efficiency House 40 from April 20th.

Economics and Climate Protection Minister Robert Habeck (Greens) had said that one had to be prepared for the fact that the budget would be exhausted very quickly.

According to reports, the ministry had not expected that the funds would be gone so quickly.

Applications to the state development bank KfW were possible from Wednesday morning.

According to the ministry, the budget was already exhausted in the course of the morning.

The KfW website read: "Please do not submit any more applications."

A spokeswoman for Habeck spoke of a big run.

The pot of one billion euros will not be increased.

KfW: Protest after premature application stop in January

The funding for the Efficiency House 40, which has now been stopped, provided for a government repayment subsidy in addition to a promotional loan.

The funding rates were halved compared to the previous funding.

The ministry justified this by saying that as many applicants as possible should receive funding.

At the beginning of the year, Habeck prematurely stopped KfW grants for energy-efficient construction and renovation shortly before the end of the application period due to a flood of applications.

This was justified with the threat of additional costs in the billions.

After fierce protests, the federal government decided that applications received by a certain deadline would still be processed.

However, there is no further funding for new buildings with the EH55 standard.

It was announced that the program would be continued for renovations and EH40 houses - the restart of the EH40 new building subsidy happened this Wednesday.

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What happens now?

Habeck had announced that the gradual realignment of new construction subsidies should gradually be geared towards more sustainability and efficiency.

The now stopped EH40 funding was the first stage in a new concept of the Ministry of Economic Affairs.

The second stage starts this Thursday at KfW - specifically, it is about new construction funding in the so-called "EH40 Sustainability" program, which provides for more demanding conditions.

In addition to subsidies for new construction, the state also subsidizes the renovation of buildings

According to the Ministry, the program only allows new construction funding in combination with the “Sustainable Building” quality seal.

This should send a "clear signal" for the reorientation towards sustainable construction.

This second stage of new construction funding will run until the end of 2022.

A third stage is then planned for January 2023 - under the title "Climate-friendly construction".

According to the ministry, the program should focus even more on greenhouse gas emissions from buildings.

What exactly it looks like is currently being worked out in the federal government.

In addition to subsidies for new construction, the state also subsidizes the renovation of buildings.

According to the ministry, funding for refurbishment is particularly important for climate protection.

With a subsidy euro, the highest greenhouse gas savings and thus the highest climate protection effect could be achieved here.

Old windows, old outside doors or old heating systems in particular are "energy guzzlers".

Replacement and renewal are important in order to reduce energy demand and energy costs.

Habeck had repeatedly referred to the focus on renovations.

Criticism of the funding policy came from the Union.

"The renewed stop of the acceptance of applications for the EH40 funding program by KfW today only makes you speechless and angry," said Ulrich Lange (CSU), deputy chairman of the CDU/CSU parliamentary group.

Habeck and the Ampel government fooled the people of Germany.

The program was resumed with a funding volume that was far too low: "We warned and predicted that the home-owning dreams of countless people would be shattered with open eyes."