BAFA grants in Germany 2026: insulation, windows, heating optimisation

Updated: 2026-09-15 · Reading time: 10 min · ImmoLens editorial team

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This guide was written by the ImmoLens editorial team and last reviewed on 2026-09-15. The information is for orientation and does not replace legal, tax or financial advice.

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The BAFA (Bundesamt für Wirtschaft und Ausfuhrkontrolle, the Federal Office for Economic Affairs and Export Control) awards direct grants for individual energy efficiency measures on residential buildings. Unlike KfW, there is no loan here. Instead you get cash in your account that does not have to be paid back.

💡 BAFA vs. KfW at a glance: KfW mainly funds full refurbishments (KfW 261) and purchase or new build (KfW 124, 300) with loans and Tilgungszuschüsse (repayment grants). The BAFA funds individual measures such as insulation, windows or ventilation with direct grants. Both programmes are part of the Bundesförderung für effiziente Gebäude (BEG, federal funding for efficient buildings).

1. What does the BAFA fund?

The BAFA subsidises individual measures on the building envelope and building services. Since 2024, heating replacement has moved to KfW. The BAFA takes care of everything else:

Measure	Basic grant	+ iSFP bonus	Total possible
Insulation of exterior wall / façade	15 %	+ 5 %*	up to 20 %*
Insulation of roof / top-floor ceiling	15 %	+ 5 %*	up to 20 %*
Insulation of basement ceiling / floor slab	15 %	+ 5 %*	up to 20 %*
Windows & exterior doors	15 %	+ 5 %*	up to 20 %*
Summer heat protection (shutters, sun shading)	15 %	+ 5 %*	up to 20 %*
Ventilation system	15 %	+ 5 %*	up to 20 %*
Heating optimisation (e.g. hydraulic balancing)	15 %	+ 5 %*	up to 20 %*

* Important since 21 July 2026: the iSFP bonus is only granted once the eligible investment reaches €30,000, and it applies exclusively to the share of the cost above that line. Below it you get the 15 % base rate and nothing else. The highest possible grant per residential unit therefore drops from €12,000 to €10,500(15 % on €60,000 plus 5 % on the upper €30,000).

⚠️ Not at the BAFA: the heating replacement (heat pump, biomass, solar thermal) has run through KfW (programme 458) since 2024. The BAFA is no longer responsible for it. See our KfW funding guide.

2. Eligible costs & upper limits

The BAFA does not subsidise unlimited amounts. There are clear upper limits for the eligible costs:

Variant	Max. eligible costs	Condition
Without iSFP	€30,000 per residential unit	Energy consultant required, but no refurbishment roadmap
With iSFP	€60,000 per residential unit	The measure is part of the individueller Sanierungsfahrplan

Worked example: façade insulation with an iSFP

Cost of façade insulation (external insulation system)	€38,000
Basic grant (15 % on the full €38,000)	− €5,700
iSFP bonus (5 % on the €8,000 above the threshold)	− €400
Your net costs	€31,900
Total grant	€6,100
For comparison: the same measure without an iSFP	€4,500 (capped at €30,000)

3. The iSFP bonus: the underrated funding advantage

The individueller Sanierungsfahrplan (iSFP, individual refurbishment roadmap) is perhaps the best cost-benefit ratio in building funding. For a relatively small investment you receive considerably more grant money:

What is an iSFP? A qualified energy consultant draws up a long-term refurbishment plan for your building, with an order of measures, a cost forecast and the savings potential.
Cost: approx. €1,500–2,500 for a single-family house. Of that, the BAFA covers 50 %, at most €650 for one- and two-family houses and at most €850 from three residential units upwards.
Your own share: realistically €850–1,850.
Your benefit: the doubled funding cap (€60,000 instead of €30,000), plus 5 percentage points on the share of the cost above €30,000.

✅ Is an iSFP worth it? Since 21 July 2026 no longer across the board, and the arithmetic has flipped: the funding cap now weighs more than the bonus.

For the €38,000 insulation job above, the iSFP yields €6,100 instead of €4,500, so €1,600 more. Only €400 of that comes from the bonus; the other €1,200 come purely from the cap rising from €30,000 to €60,000. Against an own share of €850 to €1,850 for the roadmap, that is either a decent deal or a wash, depending on the quote you get.

The rule of thumb is now: below €30,000 of eligible costs the iSFP brings no financial benefit at all. Between €30,000 and €40,000 it only pays off with a cheap consultant. Well above that it clearly pays off, because the doubled cap then takes full effect.

How the iSFP process works

🔍 commission an
energy consultant

→

📋 draw up the iSFP
(50 % funded)

→

📝 BAFA application
with iSFP bonus

→

🏗️ carry out
the measure

→

💰 receive
the grant

The iSFP has to exist BEFORE the BAFA application, so allow 4–6 weeks of lead time

4. Minimum technical requirements

Not every kind of insulation is automatically funded. The BAFA sets minimum U-values as a condition, and these are stricter than the minimum requirements of the GEG (Gebäudeenergiegesetz, the German building energy act):

Component	Max. U-value (BAFA)	Comparison: GEG requirement
Exterior wall	0.20 W/m²K	0.24 W/m²K
Roof / top-floor ceiling	0.14 W/m²K	0.24 W/m²K
Basement ceiling / floor slab	0.25 W/m²K	0.30 W/m²K
Windows (Uw value)	0.95 W/m²K	1.30 W/m²K
Exterior doors	1.30 W/m²K	1.80 W/m²K

⚠️ Important: your energy consultant has to confirm that the U-values are met, both before the work starts (technical project description) and after completion (proof of use). No energy consultant means no BAFA funding.

5. How to file the BAFA application

Commission an energy consultant – you can find an approved expert at energie-effizienz-experten.de . Make sure the consultant is approved for the „Bundesförderung für effiziente Gebäude".
Optional: have an iSFP drawn up – it doubles the eligible costs and adds 5 percentage points on the cost above €30,000. Your own share is €850–1,850, so it only pays off on larger projects.
Online application to the BAFA – file the application at bafa.de in the „BEG EM" portal. BEFORE you place the order with the contractor.
Wait for the grant notice – usually 2–8 weeks. Only then are you allowed to place the order.
Carry out the measure – a specialist company does the work.
Submit the proof of use – the energy consultant confirms that the work was carried out properly. The BAFA transfers the grant to your account.

✅ Timing tip: allow at least 4–6 months from the first contact with the energy consultant to the payout. So start early, ideally before or in parallel with the property purchase.

6. Combining BAFA and KfW?

The most important rule: for one and the same measure you cannot use BAFA and KfW at the same time.There are, however, sensible combinations across different measures:

Combination	Allowed?	Explanation
BAFA (insulation) + KfW 458 (heating)	✅ Yes	Different measures, different funding pots
BAFA (windows) + KfW 358 (supplementary loan)	✅ Yes	358 is a supplementary loan after a BAFA or KfW grant approval
BAFA (insulation) + KfW 308 (purchase)	✅ Yes	KfW 308 is for the purchase, BAFA for the refurbishment
BAFA (insulation) + KfW 261 (same measure)	❌ No	Either the BAFA grant or the KfW 261 loan, not both
BAFA + tax deduction (§ 35c)	❌ No	Anyone who receives BAFA funding cannot also claim the tax deduction

When BAFA, when KfW 261?

Rule of thumb: if you are only planning individual measures (for example only windows, only the façade) → BAFA. If you refurbish the entire building to an Effizienzhaus standard → KfW 261 (repayment grant of 0 to 10 % depending on the level since 21 July 2026, plus bonuses).

Decision aid: BAFA or KfW?

🏗️

BAFA grant

Individual measures
Direct grant (15–20 %)
No loan needed
Fast payout

🌱

KfW 261 loan

Full refurbishment to EH standard
Loan up to €150,000
Repayment grant 0–10 % plus bonuses (since 21 July 2026)
Through your own bank

Tip: individual measures through the BAFA are simpler and faster. Since the reform, a full refurbishment through KfW 261 pays off mainly with EH 40/55 and the WPB bonus; for EH 85/70 there is no grant any more

7. Common mistakes in the BAFA application

Order placed before the application: the most common mistake. The BAFA application has to be filed before the contractor is commissioned. Applications filed afterwards are rejected.
No energy consultant: without an energy efficiency expert listed with the dena no BAFA application is possible.
U-values not met: the BAFA requirements are stricter than the GEG. Cheap windows with Uw = 1.1 are not enough (the BAFA requires ≤ 0.95).
Misjudging the iSFP: since 21 July 2026 a mistake in both directions. On measures below €30,000 the roadmap no longer brings any financial benefit, on larger ones the doubled funding cap is often overlooked.
Missed deadlines: after the grant notice you usually have 24 months to carry out the work.
Incorrect invoice: the invoice has to show labour costs and material costs separately and be made out to the applicant.

8. BAFA funding for buyers: what matters?

As a property buyer you have a particular advantage: you can use the BAFA funding directly after the purchase to finance the refurbishment work needed.

Before the purchase: analyse the listing with ImmoLens. The analyzer detects the need for refurbishment and shows the funding potential.
During the purchase: price the refurbishment costs into the negotiation. A documented BAFA grant strengthens your negotiating position.
After the purchase: commission an energy consultant, have an iSFP drawn up, file the BAFA application, all of it still before the refurbishment work begins.

✅ Buyer tip: you can file the BAFA application as soon as you are the owner, that is from the day of notarisation. Do not wait for the entry in the Grundbuch (land register).

9. Further reading

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