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State support now available for efficient technology


For an excellent overview of all the latest funding measures, see the brochure created by the German Heat Pump Association (BWP).

 Brochure (PDF, 2.3 MB)


The field of heating technology has witnessed substantial development over time. Just a few short years ago, Germany was home to a great many coal furnaces that provided people with heat in the winter months. Today, in contrast, heat pumps have risen to become one of the most sophisticated forms of technology for heating and hot water generation. 



The state shares this view, offering market incentives for the procurement of efficient heat pumps by means of various funding programmes and low-interest loans including repayment subsidies. The loans are granted by KfW, which is the largest national development bank in the world. It provides funding within a range of programmes as part of a public contract, promoting aspects such as energy-efficient construction and renovation. In this way, it offers a variety of possibilities for financing the installation of a heat pump through low interest loans.



Depending on the chosen system and the application area, heat pump purchasers receive state funding within the scope of the market incentive programme run by the German Federal Office for Economic Affairs and Export Control (BAFA). The version of the market incentive programme that entered into force on 1 April 2015 further enhanced the funding options for heat pumps. A fundamental distinction is drawn between core funding and innovation funding in this regard, with additional bonus payments being made if various criteria are met.



The funding rates for ground source systems are now higher than the funding available for air-to-water heat pumps. Before making a decision, however, it is essential to consider the overall investment and to compare the organisational and administrative workload relating to the installation of the respective systems. The above graphic provides an initial overview.

Exchange now even more rewarding

with the APEE bonus

The APEE (energy efficiency incentive programme) bonus was introduced on 1 January 2016, making the change from an inefficient boiler to a modern heat pump an even more attractive prospect. There are also additional optimisation measures that can further increase the amount of funding provided.

Funding tip:

When it comes to the market incentive programme run by BAFA, the heat pump must be responsible for room heat and drinking water heating in order for funding to be granted. However, there are two situations that are exempt from this rule:

  • The building to be heated is a non-residential building
  • The drinking water heating is performed by another renewable system

The scope of this second situation covers systems such as service water heat pumps and solar thermal systems. Electrical flow heaters can also be recognised as an option for meeting the obligation to ensure renewable drinking water heating.

For this purpose, one of the following conditions must be met:

  • The flow heater is operated using green electricity. The corresponding tariff must be identified with one of the established certificates (e.g. Grüner Strom label, ok-power label, TÜV eco-power certificate). The corresponding electricity contract must be provided as proof, together with a written declaration that the applicant will use this tariff for the operation of the flow heater for a minimum of 7 years.
  • The flow heater is supplied with self-generated PV electricity. However, this only applies if the PV system was installed after 2012 (i.e. from 1 January 2013 onwards) – this regulation is not applicable for older systems. The corresponding invoice for the PV system must be enclosed with the application as proof.

Ecodan systems are especially suitable for modernisation. There has never been a better time to bring the energy revolution into your home, with the efficiency of Ecodan and the current funding options providing ideal conditions for your customers!