Funding opportunities 2023: The innovations for energy-efficient construction and renovation for property owners at a glance

In 2023, homeowners and prospective property owners in Germany will have a wide range of opportunities to take advantage of financial incentives for energy-efficient construction and renovation. Families in particular will benefit from new KfW programs offering low-interest loans and extended credit terms. These support measures are part of a comprehensive strategy to promote sustainable real estate projects and environmental protection. Find out details about the innovations and opportunities in the following article and take advantage of the opportunities!

Funding opportunities for real estate projects 2023

There are a variety of funding options available for building, buying or renovating a home for energy efficiency, allowing homeowners to make their projects more efficient and cost-effective.

1. Home ownership subsidies for families

Since June 2023, families have benefited from a new KfW program that offers particularly low-interest loans for building a house or purchasing a new building. Since October 16, 2023, the conditions have been even more attractive, as the income limits have been raised and the maximum loan amounts increased. The Bayerische Landesbodenkreditanstalt (LABO) also offers various low-interest loans here.

2. Energy-saving construction and renovation

Special attention is paid to subsidies for energy-saving construction and renovation. Here, homeowners can benefit from repayment subsidies of up to 52,500 euros per housing unit. Grants are also available for individual measures such as replacing the heating system or insulating the exterior walls. Depending on the type of measure, the tax bonus can be an equally attractive option. These subsidies are also available for rented properties.

3. A wide range of subsidies

Subsidies for the construction, purchase or renovation of efficiency houses and the energy-efficient refurbishment of existing properties include low-interest loans from KfW and grants from the German Federal Office of Economics and Export Control (Bafa). The exact amount of funding depends on the type of measure, and it is important to note that homeowners must apply for funding before signing any contracts.

In Bavaria, the Bayerische Landesbodenkreditanstalt (LABO) acts as a central point of contact for subsidies in the field of energy-efficient construction and renovation. LABO offers a variety of programs aimed at providing financial support to property owners to make their buildings more energy-efficient and environmentally friendly. Both new construction and existing buildings are considered to support a wide range of real estate projects.

At the city level, Munich has the Climate Protection and Energy Efficiency Grant Program (FKG), which is specifically designed to support local property owners in their efforts to make their buildings more sustainable. The FKG program offers financial incentives for measures such as improving the building envelope, using renewable energy, and optimizing heating and cooling systems. By taking advantage of these subsidies, property owners in Bavaria can not only contribute to climate protection, but also reduce their energy costs in the long term.

4. Promotion according to energy standard

The subsidy is based on the energy standard, with the KfW efficiency house standard serving as the benchmark. This indicates how efficient a house is in terms of energy consumption compared to a new building. The better the energy balance, the higher the subsidy.

Within the framework of the Building Energy Act (GEG), there are various funding opportunities and incentives for heating system replacement and the energy-efficient refurbishment of buildings:

  • Direct Support Programs:
    • Grants and/or low-interest loans for heating replacement and other energy retrofits.
    • Processing usually via the KfW banking group or the Federal Office of Economics and Export Control (BAFA).
  • Promotion of specific heating systems:
    • Targeted subsidies (up to 30%) for the installation of efficient and environmentally friendly heating systems, such as heat pumps or biomass heating systems.
    • Additional bonus of 10% if old oil, gas, coal or night storage heaters are replaced by new heaters using renewable energies.
  • Consulting Funding:
    • Funding for energy consulting to determine the best measures and funding options on an individual basis.
  • Funding for the installation of digital systems:
    • Support for the installation of digital systems to optimize energy consumption.

If you don’t need financing or don’t qualify for grants, there are also interesting tax incentives available – even for owner-occupants:

  • Tax bonus for energy-related renovation measures:
    • 20% of the costs for energy-related renovation measures can be deducted from the tax liability over a period of three years.Applies to owner-occupied or rented residential property.
    • Also includes the replacement of old heating systems.


All in all, the wide range of funding opportunities offers an excellent chance for builders, homebuyers and renovators to make their project cost-effective and energy-efficient. Careful planning, the support of an energy consultant and the timely application for subsidies are crucial in order to benefit optimally from the various offers.

Our expert Klaus Nützl will be happy to advise you on further steps.

Further questions? Our expert on the subject of funding and financing will support you!

Our specialized real estate team, consisting of tax advisors, lawyers, financial experts and accounting specialists, offers you a comprehensive consulting package from a single source.

Together with you, we will develop the optimal solution for you!


Klaus Nützl

Dipl.-Bankbetriebswirt (BA)
Klaus Nützl
Leitung Immobilien- und Finanzierungsberatung
Geschäftsführer der ACCONSIS GmbH Steuerberatungsgesellschaft

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