Government Aid for Fresh Construction Projects: KfW 297 and 298
In Germany, the KfW (Kreditanstalt für Wiederaufbau) offers various funding programs for real estate projects, including those promoting climate-friendly new buildings. Two such programs, KfW 297 and KfW 298, offer up to 150,000 € in loan amount for climate-friendly new constructions.
These programs support construction and purchase, energy efficiency expert accompaniment, and sustainability certification. They also encourage the use of renewable energy sources and sustainable building materials and methods.
To qualify for these programs, a building must achieve the energy efficiency standard of an Efficiency House 40, which means it can consume a maximum of 40% of the energy of an existing, comparable building. Additionally, the building must emit as little CO2 over its life cycle as the "Quality Seal Sustainable Building Plus" requires.
The financing conversation with the lender, including the KfW form, is necessary before initial orders can be issued to start the construction project. The effective annual interest rate for a KfW 298 loan for climate-friendly new construction residential buildings is 2.98% for a loan term of 4-10 years.
Early repayment of the loan is possible, but KfW will charge an early repayment compensation. The subsidy is higher if the building also meets the requirements of the "Quality Seal Sustainable Building Plus" or the "Quality Seal Sustainable Building Premium."
In Baden-Württemberg, families can receive up to 240,000 euros as a zero-interest loan if their property meets criteria for energy efficiency. Other federal states also pay a family bonus.
To receive the KfW funding for climate-friendly new construction, four steps must be followed: commission specialists for energy efficiency and sustainability, plan construction financing, have a financing conversation with a lender, and submit the "certification of completion" once the house is finished.
The "Quality Seal Sustainable Building" (QNG) is a state seal for buildings that meet ecological, socio-cultural, and economic requirements. It is awarded by independent bodies at the "PLUS" and "PREMIUM" requirement levels.
It's important to note that the specific requirements for a building to qualify as climate-friendly under these programs are not detailed explicitly in the provided search results. For precise requirements of the KfW 297 and 298 programs, consulting the official KfW website or program brochures would be necessary.
These programs apply to property owners in the planning phase and buyers planning to purchase an energy-efficient house within a year of completion. The KfW 297 program supports self-use buildings, while the KfW 298 program is for investors who will rent out the new building. The program KfW 297 is not intended for refinancing existing loans, as additional financing for already started projects, or for purchasing land.
Anyone who wants to build a climate-friendly house can benefit from the new construction subsidy, including private individuals, companies, landlords, housing cooperatives, and associations, with no income limits or other restrictions.
[1] For more information on other KfW climate-friendly building programs, such as 296, 300, please visit the official KfW website.
- The KfW 297 and KfW 298 programs are designed for investors in the real-estate industry who are building or purchasing climate-friendly properties, and these include those who will rent out the new buildings.
- A counsellor specializing in personal-finance and energy efficiency can provide expert guidance to help individuals meet the stringent energy efficiency standards required for KfW funding, such as the Efficiency House 40 and the Quality Seal Sustainable Building Plus.
- For those looking into investing in the renewable energy sector, the KfW offers various programs like KfW 296 and 300 that provide funding for climate-friendly projects in the energy industry.
