“Germany’s Photovoltaic Strategy Faces Roadblocks Due to Reluctance of House Banks to Pay Approved Loans”

In terms of craft, nothing is particularly good for Germany’s fallen political darling. Now climate protection minister and Vice-Chancellor Robert Habeck (Greens) is threatened with the next flop after the messed-up heating hammer and building renovation law: Approved loans from the Reconstruction Loan Corporation (KfW) for homeowners who want to convert to solar and photovoltaic systems are apparently only being paid by the house banks reluctantly or not at all.

KfW is possibly the most important bank in Germany. For decades, it has made it possible for the general population to build their own homes or carry out renovations at comparatively low interest rates. This is how it should be with the latest photovoltaic strategy, which Economics Minister Habeck proudly announced three weeks ago. With the so-called KfW 270 support program, subsidized state loans for biogas plants and wind turbines should be granted. And just for “solar power plants” on millions of private house roofs.

But the matter has a huge catch, Habeck and his experts have apparently made the bill without the big German house banks. And they are necessary to hand out the KfW loans. The KfW itself does not have a branch network, applications for funding must be processed through the respective banks of the borrowers. But many banks neither have Habeck’s support program on offer nor do they offer it on request.

The reason for this is simple: unlike previous measures, Habeck’s initiative is not paying off this time. The amount of bureaucracy is far too great for the banks, and there is no money to be made from it. “The banks just don’t feel like it,” a banker told n-tv in New German. The consequences are clear: homeowners who do not get the subsidies will give the German climate change the cold shoulder.