Energy refurbishment in Berlin: measures, funding in 2026 and GEG obligations

An energy renovation reduces a home's energy demand through an insulated building envelope and efficient heating technology — according to KfW, savings of over 60 per cent are readily achievable with a complete renovation.¹ In Berlin, funding, GEG obligations and the right sequence determine its cost-effectiveness. This guide covers worthwhile measures, Efficiency House standards, funding in 2026 and legal obligations when renovating an existing building.

Key points at a glance

• Sequence: insulate the building envelope first, then replace the heating — otherwise the new heating system will be oversized
• Savings: over 60 % with complete renovation (KfW)¹, up to 80 % in a dena model calculation⁵
• 2026 funding: KfW heating grants up to 70 %, BAFA building envelope grants 15 % (+5 % with a renovation roadmap), KfW Efficiency House loan, plus Berlin's IBB programmes — always apply before awarding the contract
• GEG: maximum U-values apply to renovations (external walls 0,24, windows 1,3, basement ceiling 0,30 W/m²K) once more than 10 % of a component's area is renewed³
• Efficiency House standards (EH 85/70/55/40) determine funding levels and requirements — the lower the number, the better²

What is an energy renovation?

An energy renovation improves a building's energy efficiency — by insulating its envelope, replacing windows and installing heating that uses renewable energy. The potential is considerable: the buildings sector accounts for around 35 per cent of Germany's final energy consumption, mainly for heating and hot water.⁷ It can be carried out as part of a complete renovation or in stages through individual measures.

Which measures are involved — and in what order?

The central rule is to insulate the building envelope first, then renew the heating. Replacing the heating before insulating means sizing it for the poor existing condition — after insulation, it is oversized and runs inefficiently. The consumer advice centre recommends coordinating the measures through an individual renovation roadmap (iSFP).⁶ Typical packages of measures:

• Building envelope insulation: façade, roof and basement ceiling — in Berlin's older listed buildings, often as internal insulation (more in our guide to façade insulation)
• Windows & doors: replace with thermally insulated units
• Heating: heat pump or district heating — in Berlin, depending on location and heat planning
• Ventilation: controlled domestic ventilation with heat recovery

What does an energy renovation achieve?

According to KfW, savings of over 60 per cent are readily achievable through complete renovation with an insulated envelope and efficient technology;¹ a model calculation by the German Energy Agency (dena) shows up to 80 per cent, with the additional energy efficiency costs recoverable through energy savings.⁵ One actual example of renovating a house built in 1923 in the area around Berlin achieved 57 per cent less heating energy and 65 per cent less CO₂ per square metre.⁸ The actual saving depends heavily on the initial condition and the package of measures — only an individual energy assessment can provide a reliable figure.

Efficiency House standards: EH 85, 70, 55 and 40

The Efficiency House standard is the benchmark for funding. The number indicates how much primary energy the renovated house needs compared with a legally defined reference building — the lower, the better.²

What funding is available in 2026?

Federal and state funding can be combined — but the application must be submitted before awarding the contract .

• KfW heating grant (458): 30 % basic funding plus bonuses (climate speed, income, efficiency), maximum 70 %, capped at 30.000 euros in eligible costs for a detached house⁴
• BAFA individual measures (building envelope): 15 % grant for insulation and window replacement, plus a 5 % bonus with an individual renovation roadmap⁹
• KfW Efficiency House loan (261): subsidised-interest loan with a repayment grant for complete renovation to Efficiency House standard
• Tax incentive under § 35c EStG: 20 % over three years for owner-occupied homes more than ten years old (max. 40.000 euros) — cannot be combined with KfW/BAFA support for the same measure¹⁰
• IBB Berlin: state-owned programmes such as “Effiziente GebäudePLUS”, which can be combined with KfW funding¹¹

Which GEG obligations apply to renovation?

Anyone already renovating must meet the maximum values under the Buildings Energy Act for the affected components — once the measure covers more than 10 per cent of the relevant component's area:³

There are also retrofit obligations: the top-floor ceiling must be insulated, boilers more than 30 years old must be decommissioned, and uninsulated heating pipes in unheated rooms must be insulated. Owner-occupiers of one- and two-family homes who already lived in their house on 1 February 2002 are exempt from these retrofit obligations; new owners have two years after purchase.¹² When replacing heating, the 65 per cent renewable energy requirement also applies, taking effect in Berlin in line with municipal heat planning — details in our house renovation overview.

Frequently asked questions

What do Efficiency House standards EH 85, 70, 55 and 40 mean?

The number indicates how much primary energy the renovated house consumes compared with a legally defined reference building: an Efficiency House 55 needs only 55 per cent, an EH 40 only 40 per cent. The lower the number, the better the efficiency and, generally, the higher the funding.

Which measures are included in an energy renovation?

Typical packages include insulating the façade, roof and basement ceiling, replacing windows and doors, and installing new heating — in Berlin, usually a heat pump or a district heating connection. The biggest saving comes from combining measures, so the rule is: insulate first, then replace the heating.

How much energy does an energy renovation save?

According to KfW, savings of over 60 per cent are readily achievable with complete renovation; a dena model calculation shows up to 80 per cent. An actual example in the area around Berlin achieved 57 per cent less heating energy and 65 per cent less CO₂ per square metre. The specific saving depends heavily on the initial condition and package of measures.

What funding is available for energy renovation in Berlin in 2026?

The KfW heating grant (458) subsidises climate-friendly heating with up to 70 per cent. BAFA supports building envelope measures with 15 per cent (plus 5 per cent with a renovation roadmap). Other options include KfW Efficiency House loan 261, the tax incentive under § 35c EStG and Berlin's IBB programmes. Always apply before awarding the contract.

Which obligations apply under the GEG when renovating an existing building?

The affected components must meet the GEG maximum values: external walls and roof 0,24 each, windows 1,3 and basement ceiling 0,30 W/(m²·K), provided the measure covers more than 10 per cent of the component's area. There are also retrofit obligations such as insulating the top-floor ceiling. Owner-occupiers of one- and two-family homes who already lived in their house on 1 February 2002 are exempt.

For help choosing a company, read how to find and compare renovation companies in Berlin; for a cost estimate, use the renovation cost calculator.

Sources

1. KfW, The Efficiency House — savings of over 60 % with complete renovation
2. KfW, Efficiency House standards EH 85/70/55/40 (primary energy and transmission heat loss)
3. Buildings Energy Act (GEG), Annex 7: maximum U-values when altering external building components (external walls 0,24 / windows 1,3 / basement ceiling 0,30)
4. KfW, heating grants for private individuals — residential buildings (programme 458), up to 70 %
5. German Energy Agency (dena), Renovation Study Part 2 (model project, up to 80 % savings; 2012)
6. Consumer advice centre, energy renovation and individual renovation roadmap (iSFP) — sequence of measures
7. Federal Ministry for Economic Affairs and Energy (BMWE), energy transition in the buildings sector (~35 % of final energy consumption)
8. co2online, energy renovation model calculation (house built in 1923, area around Berlin: 57 % less heating energy, 65 % less CO₂/sqm)
9. BAFA, federal funding for efficient buildings — individual building envelope measures (15 % + 5 % iSFP bonus)
10. § 35c EStG, tax relief for energy measures in owner-occupied homes (20 % / 40.000 €)
11. Investitionsbank Berlin (IBB), “Effiziente GebäudePLUS” funding programme
12. BBSR, GEG information portal: retrofit obligations for existing buildings and exemption for owner-occupiers (cut-off date 1.2.2002)