BERLIN / LONDON (IT BOLTWISE) – The federal government has decided to revive the EH55 funding program to boost housing construction in Germany. A budget of 800 million euros is intended to support energy-efficient construction projects that are both ecologically and economically attractive. This measure could enable the completion of thousands of new homes and reduce the construction backlog.
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The federal government’s resumption of the EH55 funding program marks a significant step towards stimulating housing construction in Germany. A budget of 800 million euros is intended to support energy-efficient buildings that are both ecologically and economically attractive due to their lower energy consumption. This initiative could not only spur the construction of thousands of new homes, but also make an important contribution to energy efficiency.
The traffic light coalition originally stopped promoting the EH55 standard in 2022 because this energy standard had largely become established. The focus was placed on the more demanding EH40 standard, but this led to delays and a significant construction backlog. The new government, consisting of the CDU/CSU and SPD, has now recognized the need to support existing plans for EH55 houses in order to meet housing needs.
The provision of 800 million euros is intended to reduce the so-called construction backlog, i.e. the gap between approved and actually implemented projects. Construction Minister Verena Hubertz emphasized that once the funding measures have been granted, builders can immediately start working on projects that have already been approved. This sends a strong signal to the construction industry and could enable the construction of tens of thousands of new homes.
Funding is provided through low-interest loans from KfW Bank as long as budget funds are sufficient. The buildings not only have to meet the EH55 standard, but also be heated entirely with renewable energy. The use of oil and gas heating is excluded and an existing building permit is mandatory in order to benefit from the subsidies. These measures represent a significant step towards meeting the housing needs in Germany in a sustainable and environmentally friendly manner.
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