By Ohad Grodzenski · Updated: October 14, 2026 · Reading time: ~4 min.
The state is really putting money on the table in 2026, and you can get up to 80% of your heat pump costs gifted. Sounds too good to be true? It isn't. KfW 458 (formerly BEG EM) is the central funding program for heating systems. Here you'll learn exactly how much money you get, who can participate, and how to submit the application correctly, no bureaucratic German, just clear facts with a wink.
KfW 458 (formerly BEG EM) is the central funding program of KfW Bank for heating replacement. From 2026, there's up to 80% grant for installing a heat pump. You don't have to pay the money back and there's no credit trap, it's simply a direct grant into your account. The clou: Depending on your situation, bonuses stack on top of each other. (Note: KfW 270 is a low-interest loan for renewables — not a grant.)
| Bonus | Amount | Requirement |
|---|---|---|
| Basis bonus | 30% | For every new heat pump (air, ground, water) |
| Climate-speed bonus | + 16% | You're replacing a functioning oil/coal heating or a gas/biomass heating that's at least 20 years old |
| Income bonus | + 10–40% | Your taxable household income is below €50,000 |
| Total | up to 80% | All bonuses combined (capped) |
Example: You install an air-water heat pump for €25,000, replace an old gas boiler, live in the house yourself and your taxable household income is at most €30,000. → 30% + 16% + 40% = 86%, capped at 80% = €20,000 grant → You pay €5,000 yourself. Without the income bonus (income above €50,000) it is 46% = €11,500.
Maximum €28,000 per residential unit is eligible for funding. Everything above that (e.g., expensive special requests), you have to cover yourself. But for a normal single-family home, the limit is usually more than sufficient.
The application must be submitted to KfW BEFORE construction begins.
BAFA no longer does heating funding from 2026, everything runs through KfW now.
Your heating installer usually helps you with the application (many even do it free of charge).
Everything runs digitally via the "My KfW" portal, you just need an account and your specialist company's documents.
Tip: Don't wait too long. Although the funding pots are well-filled, first come, first served.
Calculate your personal funding now
Free calculator, no registration, instant result for your house
Open free calculator now →The biggest mistake costs real money: if you order your heat pump or start the installation before the application is filed with KfW, you lose your claim to funding. The application must be submitted before construction starts, no exceptions. The same applies to any advance invoice, because that also counts as commissioning.
The second classic: leaving bonuses on the table. The 16% climate-speed bonus only applies if you can prove you are replacing a functioning old gas, oil or coal heating system. The income bonus of up to 40% requires a taxable household income below €50,000, which you can usually reach as a private homeownerodel and a proper heating load calculation. Take both with you and you are at 80% instead of 30%, saving up to 14,000 EUR more grant on 28,000 EUR of eligible costs.
❓ Do I really get up to 80%?
Only with all three components: 30% basic grant, 16% climate-speed bonus (replacing an old oil, gas, coal or night-storage heater) and the 40% income bonus (taxable household income up to €30,000, owner-occupied). That is 86% on paper, capped at 80%. The former 5% efficiency bonus was abolished on 21 July 2026 (KfW 458).
❓ Does the funding also apply to old buildings?
Absolutely! Especially when replacing an old oil or gas heating in an old building, you get the full climate-speed bonus. Combined with some insulation, it becomes even more efficient.
❓ Do I have to take out a loan?
No. KfW 458 is a pure grant — no loan, no interest, no repayment. (KfW 270 is the low-interest loan product.)
❓ What happens if I submit the application too late?
Unfortunately, nothing. Without a prior application, there's no funding. Therefore: Plan first, then submit application, then start construction.