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Germany's heat pump grant halves in the first quarter of 2027
Germany's base subsidy for a heat pump drops from 30 % to 15 % of eligible costs in Q1 2027, with a 15-point bonus proposed for EU-made units. If you are buying property in Germany, or you supply that market, this is the hardest deadline in European heat pump policy.
Deadline: what counts is the application date. Apply in 2026 and you keep today's rates.
What changes
- Base grant: 30 % → 15 % of eligible costs for heat pumps, from Q1 2027.
- Value-creation bonus: 15 percentage points proposed for EU-origin heat pumps. For an EU unit the cut is roughly neutral; for a non-EU unit it is not.
- Climate speed bonus: currently 16 %; falls by 4 percentage points every six months from 1 February 2027.
- Cost ceiling: cut from €30,000 to €28,000 for the first dwelling unit on 21 July 2026; falls a further €750 every six months from 1 February 2027.
Checked 2026-08-11 · KfW Programm 458 — Heizungsförderung für Privatpersonen
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Who loses most
- Anyone specifying a non-EU heat pump: the value-creation bonus does not apply, but the base cut still does — up to €4,200 at the full cost ceiling.
- Anyone applying in the second half of 2027: on top of the halved base rate, 8 points less climate bonus and a ceiling €1,500 lower.
- Landlords and non-owner-occupiers: with no climate or income bonus, the grant is the base rate and nothing else. 30 % becomes 15 % with no offset.
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What it means in practice
- What matters is the date of application, not installation. Applying in December 2026 locks today's rates for a summer 2027 install, within KfW's deadlines.
- A supply or works contract with a suspensive or resolutive condition must exist before you apply. Adding that condition afterwards is not permitted and forfeits the grant.
- The confirmation of application (BzA) takes lead time. Starting to look for an installer in January 2027 will not make the deadline.
- Expect an application spike between October 2026 and January 2027, and installer capacity to tighten with it.