Germany extends green building subsidies through ’25

Germany will maintain its state subsidies for green construction and renovation through 2025, the Economy Ministry announced on Monday.

The Climate and Transformation Fund has allocated €14.4 billion ($15.9 billion) for the energy-efficient renovation of buildings next year, although this is a reduction from the €16.7 billion planned for 2024.

The fund is used to subsidise initiatives such as the installation of energy-efficient electric heat pumps, which replace gas and oil boilers.

The ministry had previously projected a need for around €14.5 billion in 2025, indicating that the updated figure is in line with expectations.

Additionally, the ministry will maintain its support for compensating energy-intensive companies facing higher electricity prices. The subsidy for this purpose is set at €3.3 billion for 2025, which is approximately €600 million less than the current year’s allocation.

Funding needs for these programmes are reassessed annually, reflecting adjustments based on previous commitments and payouts.

Attribution: WAM

Subediting: M. S. Salama