Overview of pellet heating subsidies as of 2021

Cleverly combine funding opportunities from BAFA and kfw

When buying a pellet heating system, the federal office of economics and export control (BAFA) and the kfw bankengruppe (kfw banking group) will give you a big helping hand. In addition to grants, low-interest loans are also offered. Find out here which requirements apply for subsidies for your new pellet heating system and how you can cleverly combine subsidies.

You can find these topics in our article:

Up to 55% subsidy for pellet heating from BAFA

The BAFA promotes the installation of a pellet heating system in existing buildings via the federal promotion for efficient buildings (BEG). Subsidies of 35 to 40 percent are available through the individual measures program (BEG EM). If the pellet heating system replaces an existing oil heating system, renovators receive a bonus of 10 percent. An additional bonus of 5 percent is available if an individual renovation roadmap includes heating exchange.

Allowable costs of up to 60.000 euro per residential unit. And this also applies to almost all surrounding measures such as the dismantling and disposal of the old system (z.B. Old oil tank) or the installation of a panel heating system.

BAFA subsidy for pellet heating systems in existing buildings

Pellet heating promotion
pellet boilers and water-bearing pellet stoves 35 %
particularly low-emission biomass heating systems 40 %
support for pellet heating system replacement
of an existing oil heating system
10 % extra
implementation of measures from a BAFA renovation roadmap 5 % extra

With the complete implementation of the BEG subsidy, you will alternatively also receive low-interest loans with repayment subsidies via the federal subsidy as of july 2021. The repayment subsidies reduce the loan amount to be repaid and correspond to the values in the table.

BAFA support pellet heating: requirements & application

BAFA subsidizes systems for the combustion of solid biomass. This includes boilers for wood pellets and wood chips, combination boilers for wood pellets or wood chips and logs, and wood pellet stoves with water pockets for heating support. Heating systems must cover part of the building's heat demand and have a capacity of at least 5 kw. The following table provides information on further technical requirements:

Technical requirements for the subsidy

Characteristic value requirement
emission limits for
carbon monoxide
200 mg / m³ at nominal heat output,
250 mg / m³ for partial load operation
emission limits for fine dust 15 mg / m³ or
2.5 mg / m³ for low-emission heating systems
seasonal space heating utilization rate 78 % (proof of boiler efficiency is sufficient until the end of 2022)
boiler efficiency
(until 31.12.2022 recognized as a limit value)
90 % or. 91 % combustion technology
efficiency of pellet stoves with water pockets
buffer storage volume 30 liters per kw output
55 liters per kw output for combi boilers

The prerequisite for the subsidy is the hydraulic balancing of the heating system. The funds must be applied for via the BAFA website before commissioning a heating specialist.

Get a quote for your new pellet heating system now!

Low-interest financing and subsidy via kfw

For the installation of a pellet heating system, a subsidy is also available from the kfw. The system can be financed with a low-interest loan from the kfw under program 167 "energy-efficient renovation – supplementary loan". Up to 50.000 euros per residential unit is available here for the conversion of heating to renewable energies.

The kfw bank also grants subsidies and favorable loans if a kfw efficiency house standard is achieved in the case of a renovation or new construction. The relevant programs are 153 "energy-efficient construction", 151 "energy-efficient refurbishment – loan" and 430 "energy-efficient refurbishment – investment grant".

As of july 2021, the BEG subsidy will replace the listed programs. Then the kfw gives loans with high repayment subsidies for individual measures. But renovators who bring their house up to efficiency house level are then also entitled to grants or loans with high repayment subsidies.

Just like the BAFA subsidy, the kfw subsidy for pellet heating must be applied for before installation. For the programs for energy-efficient construction and renovation, an energy efficiency expert is also required in the process.

Promotion of pellet heating in new buildings

If building owners wish to benefit from the subsidy for pellet heating systems, they must build an efficiency house. Kfw grants and repayment subsidies range from 15 to 25 percent, depending on the efficiency house level, from july 2021 and are available for the total cost of the construction project. Builders can receive up to 150 euros per residential unit and efficiency house class.000 euros of eligible costs.

Regional subsidies for pellet heating systems

The installation of a pellet heating system is additionally subsidized by the state banks of many federal states. Some municipalities and utilities also offer incentives for renewable energy use. Who would like to get an exact picture, which promotion for pellet heating and pellet stove there is in the individual case – from federal level up to the municipality – finds an up-to-date, comprehensive overview in the promotion information of efficiency house online.

Start subsidy inquiry now

Let us inform you individually about the possible pellet heating subsidies for your heating system renovation and use the subsidy information provided by effizienzhaus-online.

You want to replace your old heating system with a new wood heating system? Then you should secure the maximum subsidy.