Increased demand for certain KfW development bank loans and grants suggests that German building owners are investing more in the energy efficiency of their houses and apartment blocks. In the first half of 2017, the KfW issued around EUR 8.6 billion in low-interest loans and grants for the renovation and new construction of residential buildings. This represents an increase of around 15 percent on the same period last year (EUR 7.5 billion).
The largest share of the commitments were granted under the energy efficient construction program (approx. EUR 6.4 billion). The counterpart for energy efficient renovation issued around EUR 2 billion in loans and EUR 243 million in grants.
The federal government also supports the use of renewable energy for heat generation — in particular solar-thermal, biomass, and heat pumps — through a separate market incentive program.
German businesses are also investing heavily in energy efficiency and renewable energy. KfW loan commitments under the bank’s energy efficiency programs, including a generous waste heat program, are already well above the high levels achieved in the same period last year, up from EUR 2.2 billion at EUR 2.9 billion.
In the first half of 2017, the KfW committed around EUR 489 million for the renovation and new construction of commercial buildings and energy-saving measures in social and municipal infrastructure. The figure for the same period last year was around EUR 346 million.
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BMWi: Infographic and press release (in German)