KfW Heat Pump Subsidy: Mind the July 20, 2026 Deadline
What changes on July 21, 2026
The base subsidy for heating replacement in residential buildings stays at 30% of eligible costs, with a maximum subsidy of €28,000 for the first residential unit (€15,000 each for units two through six, €8,000 for each further unit). Two things change noticeably with the new conditions: the income bonus is fundamentally restructured (see below), and repayment subsidies (Tilgungszuschüsse) are reduced by a flat 10 percentage points.
New income tiers for the income bonus
The income bonus can be claimed in addition to the base subsidy if you occupy the property yourself. From July 21, 2026, a more finely tiered structure based on annual household income applies:
| Annual household income (no children) | Income bonus |
|---|---|
| up to €30,000 | 40% |
| up to €40,000 | 30% |
| up to €50,000 | 10% |
Families with minor children living in the household benefit from higher income thresholds (40% up to €40,000, 30% up to €50,000, 10% up to €60,000 annual household income); each child reduces the counted household income by a one-time €10,000.
Transition period until July 20, 2026
Important nuance: the transition rule doesn't automatically apply to every new application – it specifically covers customers who already hold a valid application confirmation from KfW. They can still submit their application under the previous conditions until July 20, 2026. If you don't have a confirmation yet, it's worth checking this week whether you can still obtain one before the new conditions take effect.
Degression from 2027
On top of the July 21, 2026 changeover, the maximum subsidy amount for heating subsidies in residential buildings will decrease step by step from 2027: first on February 1, 2027, then every six months (February 1 and August 1) by €750 per step. So delaying a project further doesn't just mean missing the July transition window – it also means losing subsidy value over the medium term.
What this means for your planning
If you're planning a renovation or heating replacement – such as installing a heat pump – it's worth checking this week: do you already have a valid application confirmation, or can you still obtain one in time before July 20, 2026? Depending on your household income, the new income bonus tiers may also work out more or less favorably than the previous rules – comparing both before you apply is worthwhile.