Federal government stops subsidies for energy-efficient buildings

Single-family house shell

The background to the freeze is an enormous flood of applications in January, especially for new construction subsidies.

(Photo: dpa)

Berlin In view of the flood of applications and a “mismanagement”, the new federal government has stopped funding for energy-efficient buildings for the time being and is planning a fundamental reform. As the Federal Ministry for Economic Affairs and Climate Protection announced on Monday, applications from the state development bank KfW will no longer be approved.

The new construction subsidy for the so-called efficiency house, which would have expired at the end of the month anyway, will be finally discontinued. The background is an enormous flood of applications in January, especially for new construction funding, which significantly exceeds the funds made available.

According to the information, funding for renovations is to be resumed as soon as the appropriate budgetary funds are made available. The future of new construction funding will be decided quickly against the background of the funds available in the energy and climate fund and the funding requirements of other programs.

“The application freeze is sad and disappointing news for the applicants concerned,” said Secretary of State for Energy Patrick Graichen. “We would have liked to have avoided this step. However, in recent years there has been a failure to adjust the funding framework and the legal new building standards. Instead, an outdated subsidy was continued that creates the wrong incentives.”

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These false incentives have recently produced an unprecedented run on funds. “A stop to the old funding was therefore now unavoidable. As the new federal government, we are taking this unfortunate situation as an opportunity to quickly reorganize the funding and legal standards for new buildings.”

Funding should be used in a more targeted manner

With the so-called Efficiency House 55, a standard is being promoted with tax money that has long since established itself on the market, according to Graichen. “But: Where climate protection is written on it, climate protection must also be included. We are currently promoting the wrong thing and this money is then not available for actually effective climate protection measures, for example for the very important building renovation. This can not go on like this.”

In the future, subsidies should be used in a targeted manner where the CO2 savings are greatest, Graichen continued. In the building sector, this is particularly the case with renovation measures. Graichen accused the previous black-red government of “massive climate policy and fiscal mismanagement”.

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