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Less subsidy for houses and electric cars

Nicholas by Nicholas
December 20, 2022
in News
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Less subsidy for houses and electric cars

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HCitizens have often already factored them into their calculations: the subsidies with which the federal government promotes the switch to environmentally friendly technologies. Buyers of an electric car currently receive up to 6,000 euros from the federal government as an “environmental bonus”, plus 3,000 euros from the manufacturer. With a net list price of up to 40,000 euros, a subsidy of 9,000 euros is not small. When it comes to making new buildings or older houses more energy efficient, the sums involved are even larger. Several tens of thousands of euros in funding are not uncommon, depending on the scope of the work.

But the days when funds were just gushing are over. The Bund is becoming more economical, the pots are no longer as lavishly filled as this year. If you submit your application too late, you could get nothing.

Example renovations: When it was clear at the end of July how much money there would be from 2023 for federal funding for efficient buildings, BEG for short, Minister for Economic Affairs and Climate Protection Robert Habeck (Greens) sold the figures as a great success. 14 billion euros annually, of which 13 billion euros for energy-related renovations and one billion for new buildings: “In the future, the individual will receive slightly less funding than before, but many people can benefit from the funding programs,” said Habeck at the time. In relation to the eight billion euros for renovations in 2021, that was indeed a lot. Measured against the sums approved this year, however, the funding will decrease significantly.

Only 13 billion euros for efficient buildings

According to a list by the Federal Ministry of Economics and Technology, a total of 18.5 billion euros from federal funding for renovations had already been approved by the beginning of this week. The state development bank KfW, which is responsible for comprehensive renovation projects, gave 9 billion euros. The Federal Office of Economics and Export Control (BAFA), which promotes individual measures, distributed a further 9.5 billion euros. Most frequently, this involved the replacement of heating systems (7 billion euros), followed in second place by insulation (2 billion euros).

Only 13 instead of 18.5 billion euros: That would be a decrease of around 30 percent. It is hardly to be expected that the demand for renovations will decrease. So what happens when the planned funds are exhausted in the coming year, but there are further applications? A spokeswoman for the Ministry of Economics keeps a low profile: “Basically, there is no legal entitlement to the subsidy and that the granting of the subsidy is subject to the availability of the estimated budget.” The federal subsidy for efficient buildings is financed from the climate and transformation fund (KTF ), a so-called special fund in addition to the regular budget.



Memories of January

Homeowners have already experienced how quickly subsidies can dry up: As one of his first official acts, Habeck ended the promotion of new buildings according to the KfW Efficiency House 55 standard at the end of January. The demand was far greater than the planned issue volume. A little later, the development bank stopped accepting applications for the even more economical Efficiency Houses 40. Here, too, the state subsidy pots were exhausted. The resentment of private home builders and housing companies was great, especially since the prices for building materials rose at the same time.

Builders can only expect little support from the federal government in the coming year. While 10.4 billion euros in subsidies for energy-efficient new buildings were still approved this year despite the application freeze, only slightly more than one billion euros will be available next year. The criteria for distributing this amount are currently being developed by Klara Geywitz’s (SPD) Ministry of Building, which has recently become responsible for this part of the building subsidy. There is currently still money for new buildings that not only meet the Efficiency House 40 standard, but are also classified as “sustainable buildings”.



New standard from January

Factors beyond energy consumption also play a role, such as accessibility. The demand for these subsidies is manageable. This accounted for only 0.9 billion euros of the 10.4 billion euros approved this year. Most of the sum was subsidies for efficiency houses 55 (6.5 billion euros). Habeck has now made this house type the legal minimum standard for new buildings. The new regulation will come into force on January 1, 2023.

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All those who want to buy an electric car have to adapt to the new framework conditions. For hybrid vehicles with a combined electric motor and combustion engine, there is currently a subsidy of up to 4500 euros from the federal government, from next year nothing more. The purchase premiums for purely electrically powered vehicles are falling.

With a net list price of up to 40,000 euros, the federal government will in future add 4,500 euros instead of 6,000 euros, and for more expensive vehicles 3,000 euros instead of 5,000 euros. And similar to the building promotion, a greyhound race is also emerging here. 2.1 billion euros are available for 2023 and 1.3 billion euros for 2024. This year, on the other hand, 3.4 billion euros had already been paid out by mid-November.

Tags: BEGfederal governmentFederal Ministry of Economicsfunding rallygrantKfW banking groupRobert Habeck

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