KfW New-Build Subsidy: The EH55 Loan Ends by Late 2026 at the Latest – and the Pot Is Draining
What this is about: the EH55 comeback
Funding for the Efficiency House 55 standard was cut off abruptly in early 2022 – since then, the stricter EH40 standard has been the entry ticket to KfW new-build funding. Since December 16, 2025, EH55 is temporarily back: integrated into the existing "Climate-Friendly New Construction – Residential Buildings" program (KfW 297/298). The special rule was originally set to end on June 30, 2026, and was then extended – but with a double cap: until December 31, 2026 at the latest (what counts is when the application reaches KfW), and only while funds remain available.
Why the deadline is deceptive
The second cap is the critical one: €800 million is allocated to EH55 funding for 2026. As of June, only around €343 million of that remained – less than half, with half a year still to go. If demand holds, the pot can run dry well before year-end. So "deadline: December 31, 2026" does not mean you have until December – it's the latest conceivable end, not the likely one.
Conditions at a glance
| Standard | Loan amount per residential unit |
|---|---|
| Efficiency House 55 (temporary) | up to €100,000 |
| Efficiency House 40 | up to €100,000 |
| Efficiency House 40 with QNG certificate | up to €150,000 |
The effective APR for the EH55 loan has been around 1% since March 2026 (10-year fixed rate, terms up to 35 years) – with market rates currently around 3.9% for comparable mortgages, that's roughly three percentage points saved on the subsidized loan portion. Requirements: no fossil heating (oil, gas), heat generation must be fully renewable, and an energy-efficiency expert must be involved. There is no income limit in this program.
What this means for your planning
If you're planning a new build that reaches the EH55 standard but not EH40: the application should go in within the next few weeks rather than "sometime before December" – the budget decides, not the calendar. As with all KfW programs, the application must be submitted before the project starts, and it runs through your bank or financing partner, not directly through KfW. If you're building to EH40 anyway (possibly with the QNG certificate), the EH55 deadline doesn't affect you – that part of the program continues as normal and offers the higher loan ceiling of up to €150,000 per residential unit.