The German government is set to significantly reduce the amount of financial support for energy efficiency in buildings and the installation of heat pumps next year, according to a media report. This comes as the Climate and Transformation Fund (KTF) faces a budget shortfall, with €14.35 billion available, which is €2.4 billion less than in 2024, the Bild newspaper reported, citing the cabinet proposal for the 2025 federal budget.
The cuts will also affect subsidies for energy-intensive companies, with the allocated amount shrinking by €600 million to €3.3 billion, the report said.
Mark Helferich, the energy policy spokesperson for the CDU/CSU parliamentary group, warned against an early halt to the subsidies. “Either the coalition believes that people will no longer participate in the heating transition, or there is a risk of a funding stop mid-year if the funds run out,” he told Bild. He noted that a similar situation had occurred with the subsidy stop for electric vehicles.
A spokesperson for Federal Minister for Economic Affairs Robert Habeck (Green Party) dismissed the warnings, stating that the support for buildings and companies would continue “without any cuts next year.” The spokesperson added that Habeck had recently reaffirmed this commitment. Budget policymakers in the coalition also pointed out that the funds in the KTF are never fully exhausted, allowing for reallocations if necessary.
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