OREANDA-NEWS. January 18, 2013. Through the German Federal Ministry of Transport, Building and Urban Development (BMVBS), the German government is boosting existing promotional grants through 2020 with additional federal budget funds amounting to EUR 300 million annually. The Energy-efficient Refurbishment programme is becoming even more attractive: People wishing to modernise the energy system of their home or apartment will in future benefit from an increase in investment grants. In particular private homeowners benefit from higher grant amounts. Those interested can apply for the improved grant funding directly at KfW starting today.

Dr Ramsauer, Federal Minister for Building, said: "With the new KfW grants we now offer strong financial support to home owners who wish to modernise the energy system of their home or condominium. To this end we are providing EUR 1.5 billion per year through 2014. Starting today an additional EUR 300 million annually are available over a period of eight years. A strong boost for the energy turnaround.

"Buildings account for 40% of energy consumption in Germany. The success of the energy turnaround depends greatly on the extent to which savings potentials can be tapped. By improving our programmes we aim to specifically make it easier especially for private homeowners to decide on a renovation of their own four walls: In future they can receive a significantly higher investment grant from KfW of up to EUR 18,750. Our programme improvements make a further contribution to the success of the energy turnaround," said Dr Axel Nawrath, member of KfW's Executive Board:

Improvements of the investment grants in detail:

Increase of the investment grants for individual measures from 7.5% to 10% of the eligible costs, maximum grant amount of EUR 5,000 per housing unit

Increase of the investment grants for the KfW Efficiency House 70 from 17.5% to 20% of the eligible costs, maximum grant amount of EUR 15,000 per housing unit

Increase of the investment grants for the KfW Efficiency House 55 from 20% to 25% of the eligible costs, maximum grant amount of EUR 18,750 per housing unit

Alongside the improvements in investment grants, the repayment bonus will be increased in the loan variant for the KfW Efficiency Houses 70 and 55 (current effective annual interest rate 1.00 per cent). Starting 1 March 2013 applications can be filed through commercial banks.

Improvement of the repayment bonuses in the loan variant in detail.

Increase of the repayment bonuses for the KfW Efficiency House 70 from 10% to 12.5% of the commitment amount, maximum EUR 9,375 per housing unit

Increase of the repayment bonuses for the KfW Efficiency House 55 from 12.5% to 17.5% of the commitment amount, maximum EUR 13,125 per housing unit

New KfW Programme for heating systems

Starting 1 March 2013 KfW will launch its own loan programme for promoting the use of heating systems using renewable energies. Applicants can receive low-interest loans of up to EUR 50,000 per housing unit in combination with investment grants from the market incentive programme of the Federal Office of Economics and Export Control (BAFA). Financing is provided, among others, for installing thermal solar collectors, biomass plants or heat pumps.