Germany is planning to reduce funding limits under its BEG efficient buildings subsidy scheme, while introducing stronger income-based support and new eligibility rules for heat pumps. The proposed changes include lower eligible costs and a planned “Made in Europe” incentive for heat pump production.
The German government is planning to reduce the Federal funding for efficient buildings (BEG), which includes conspicuous subsidies for the installation of residential heat pumps.
Under the planned changes, eligible costs would be reduced from €30,000 ($34,231) to €28,000 when the program is relaunched. The cap would then fall by a further €750 every six months, reaching €22,000 in the second half of 2030.
Eligible costs include the purchase, installation, and commissioning of heat pumps, as well as related measures such as necessary system upgrades, dismantling of old heating equipment, and associated planning and specialist services.
The proposals would also introduce a stronger income-based differentiation of subsidies. For households with a taxable income of up to €30,000, the bonus would increase from the current 30% to 40%. The subsidy rate would remain at 30% for incomes of up to €40,000 and fall to 10% for households earning €50,001 or more. Each minor child in a household would reduce the relevant income threshold by €10,000.
