Government Reactivates New Construction Subsidy with 800 Million Euros - Germany revives €800M subsidy to boost energy-efficient homes for sale
The German government, led by Housing Minister Verena Hubertz, is reviving a subsidy program to stimulate housing construction. The €800 million initiative aims to clear project backlogs and build tens of thousands of new homes for sale, starting in mid-December.
The program focuses on constructing Efficiency House 55 (EH55) homes, which consume only 55% of the energy required by standard homes. These homes must meet the EH55 standard and generate 100% of their heating from renewable energy sources.
The subsidy, previously discontinued in 2022, had led to the halt of many EH55 projects. Now, applicants can secure low-interest loans from the state-owned KfW development bank to resume these projects. However, they must already hold a building permit to apply for the subsidy.
With €800 million allocated, the German government aims to boost housing construction and meet energy efficiency standards. The reintroduction of this subsidy program is expected to reignite stalled EH55 projects and contribute to the construction of new homes for sale.
