17.11.2021 | KPMG Law Insights

Update on BEG: discontinuation of new construction subsidies for the Efficiency House/ Efficiency Building 55.

According to the publication of the Federal Ministry for Economic Affairs and Energy (BMWi) of November 4, 2021, the federal government has advocated in the Immediate Action Program 2022 to adjust the existing funding system of the Federal Support for Efficient Buildings (BEG) with a view to funding efficiency. According to this, the new construction subsidy component for the Efficient House/Efficient Building 55 standard for residential and non-residential buildings will be discontinued as of February 1, 2022.


BEG Funding

With the BEG, the federal government’s energy-related building subsidy was restructured in implementation of the BMWi’s subsidy strategy “Energy Efficiency and Heat from Renewable Energies“. Accordingly, the four previous federal subsidy programs for promoting efficiency and renewable energies in the building sector were merged for the first time and bundled in the new guidelines to form the three subprograms Residential Buildings (BEG WG), Non-Residential Buildings (BEG NWG ) and Individual Measures (B EG EM). Accordingly, BEG development loans and grants can be applied for, provided that certain eligibility requirements are met. In the meantime, all three BEG guidelines for residential buildings, non-residential buildings and individual measures have been adjusted again as of October 21, 2021, whereby, above all, the subsidy for heat network connections has been simplified and the crediting of waste heat has been implemented.
For the details of the BEG, we gladly refer to our article published in August 2021.


Setting EH/EG 55 New construction funding

Beginning January 1, 2021 and July 1, 2021, respectively, BEG development loans and grants are available for application. From January to the end of September 2021, the Federal Office of Economics and Export Control (BAFA) and the Kreditanstalt für Wiederaufbau (KfW) reportedly approved 12 billion euros, of which around 5.8 billion euros were for new construction and 6.2 billion euros for renovations.
According to the BMWi, the development of the subsidy figures shows that the Efficiency House/Efficiency Building 55 has largely established itself as an efficiency standard – also thanks to the comprehensive subsidy – and that the new construction subsidy mentioned at the beginning is no longer required in this respect. Against the background of achieving the climate protection targets, the existing subsidies are to be used more where the greenhouse gas reductions for achieving the sector targets and the contribution to emission reductions are highest. This is particularly the case in the area of building renovation, as this is where there is the greatest need to catch up and the greatest potential for savings.

Even to the extent that the focus of the BEG in the future will be increasingly on renovation of existing buildings, the other BEG subsidies will continue to run as before and will continue to be subsidized unchanged, with the BEG guidelines being amended as of October 21, 2021.

Important to know

Insofar as the new construction of an Efficiency House/Effizienzhaus 55 is already planned and BEG funds have been budgeted for it, complete applications can still be submitted until January 31, 2022, prior to the conclusion of supply and service agreements or the purchase contract. In addition, it is of course equally possible to adapt the plans to a higher efficiency house/ efficiency building level (EH or EG 40) before submitting the application.

For further information or queries, we are at your disposal and will of course support you in all matters concerning the BEG.


Federal Support for Efficient Buildings (BEG) – KPMG Law (


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