Policy Context & Overview
Short Answer: Under the Building Energy Act (GEG) framework, KfW 458 provides up to 70% funding to help owners install clean heat pumps.
KfW Program 458 is Germany's primary subsidy program supporting the transition of residential heating systems away from fossil fuels. Under the Building Energy Act (Gebäudeenergiegesetz - GEG), newly installed heating systems must utilize at least 65% renewable energy. To support this mandate, the government restructured its heating subsidies in 2024, providing direct cash grants through KfW to help homeowners replace oil, gas, coal, or old biomass systems with modern heat pumps.
Subsidy Structure & Stacking Bonuses
The grant is structured as a base rate topped up by three conditional bonuses, capped at a maximum of 70% of total project costs:
| Subsidy Component | Grant Rate | Eligibility Conditions |
|---|---|---|
| Base Grant | 30% | Standard rate for all eligible renewable heating upgrades. |
| Climate Speed Bonus | 20% | Replacing a functioning oil, coal, or legacy gas heater by 2028. |
| Income Bonus | 30% | For owner-occupiers with taxable household income < €40,000/year. |
| Efficiency Bonus | 5% | If the heat pump uses a natural refrigerant (e.g., propane R290). |
| Maximum Total Grant | 70% | The combined grant cannot exceed 70% (max payout of €21,000). |
The maximum eligible project cost is capped at €30,000 for single-family homes, making the maximum possible cash grant €21,000 (plus an extra €500 emissions allowance for low-dust biomass).
Eligibility & Property Requirements
- Ownership: The applicant must be the registered owner of the property.
- Existing Heating: The replaced heating system must be operational and powered by oil, gas, coal, or legacy wood/biomass.
- Property Type: Private houses (single-family or multi-family) in Germany. New construction is generally covered under separate KfW housing programs.
Step-by-Step Application Guide
- Consult Energy Advisor: Consult an energy advisor or qualified HVAC technician to confirm system specifications.
- Sign Contractor Agreement: Sign a contractor agreement that is explicitly conditional on receiving KfW grant approval.
- Register on KfW Portal: Create an account on the "Meine KfW" portal.
- Submit Grant Application: Input the contractor's project registration number and upload proof of income (if claiming the income bonus).
- Execute Swap & Claim: Install the heat pump, submit the installer's completion declaration, and receive the cash grant transfer.
Frequently Asked Questions
- Q: Can I apply for the grant after the installation is complete?
- A: No. You must apply for and receive approval for the KfW grant before the contractor begins installing the new heating system.
- Q: What is the benefit of a natural refrigerant (R290) heat pump?
- A: Propane (R290) heat pumps are eligible for the extra 5% efficiency bonus because they have a very low global warming potential (GWP) and can operate efficiently at higher flow temperatures, making them suitable for older homes with traditional radiators.