BAFA LED Funding 2026: What Changed and How to Finance LED Now

BAFA LED Funding 2026: What Changed and How to Finance LED Now

BAFA funding for interior LED lighting ended on 21 July 2026: what changed, which financing options remain and why LED still pays back without a grant.

4 min read By Clightstore lighting plannersUpdated 21.10.2026

For years, many German companies financed their LED retrofits with a BAFA grant. Since 21 July 2026 that is over: with the reformed Federal Funding for Efficient Buildings (BEG), funding for interior lighting in non-residential buildings has been discontinued. This guide shows what changed, which financing routes remain and why LED still pays back quickly without a grant.

In brief
  • Since 21 July 2026, BAFA no longer funds energy-efficient interior lighting in non-residential buildings (previously a 15% grant under BEG EM).
  • Other BEG individual measures such as building envelope or building services remain eligible.
  • Municipalities, federal states and energy suppliers sometimes have their own programmes worth checking.
  • Tax depreciation, leasing and contracting are alternative ways to finance.
  • LED retrofits in halls typically pay back in 1–3 years even without a grant.

What has changed?

Until July 2026, companies, associations and public bodies in Germany could apply to BAFA for a grant under the BEG individual measures for replacing luminaires in heated non-residential buildings. Requirements included minimum luminaire efficiencies (e.g. 120 lm/W, 140 lm/W for trunking) and the involvement of an energy efficiency expert. With the new BEG guideline from 21 July 2026, interior lighting has been removed from the funding catalogue. Basic funding for the remaining individual measures stays at 15%.

Because funding programmes change regularly, check the current status with BAFA or your energy consultant before any investment.

Warehouse with LED high bays and a cherry picker
LED retrofit of a warehouse: savings on electricity and maintenance carry the investment even without a grant.

Which options remain?

Route For whom Note
Municipal and state programmes Municipalities, public bodies, sometimes companies Varies by state and municipality, check the current status
Programmes from utilities and energy suppliers Business customers Sometimes grants or contracting offers
Tax depreciation Companies Luminaires are depreciated over their useful life, low-value assets sometimes immediately
Leasing or hire purchase Companies Instalments are paid from the electricity savings, no upfront financing
Energy performance contracting Larger properties, municipalities A service provider finances and is paid from the savings

For tax questions, your tax adviser is the right contact. Municipalities may also find LED Street Lighting useful.

Why LED pays off even without funding

The BAFA grant was most recently 15% of eligible costs. The electricity saving from an LED retrofit is many times that, every year. On top of that, direct-import prices 2–4× below comparable branded products often make the investment lower than the subsidised branded solution used to be.

Efficient luminaires for your retrofit

Worked example without funding

Warehouse with 40 metal halide high bays of 400W (approx. 440W), 4,000 hours a year, €0.28/kWh. Replaced by 40 LED high bays of 150W:

  • Saving: 40 × 290W × 4,000 h = 46,400 kWh, around €13,000 a year
  • At typical material and installation costs, the retrofit pays back in around 1–2 years, with no grant at all
  • Over 10 years, well over €100,000 in savings remain after deducting the investment

Calculate with your own values: LED Payback Period Calculator.

Frequently asked questions

Is BAFA funding for LED lighting still available in 2026?

Not for interior lighting in non-residential buildings. Funding under the BEG individual measures was discontinued on 21 July 2026.

What happens to applications made before?

Already approved applications are generally governed by the terms of the approval notice. Clarify details directly with BAFA or your energy efficiency expert.

Is funding available for municipalities?

Municipalities should check federal and state programmes for municipal climate protection. Conditions change regularly.

Is LED worthwhile without funding at all?

Yes. In halls, warehouses and workshops, a retrofit typically pays back in 1–3 years from electricity savings alone.

Can I finance the retrofit without investing myself?

Through leasing, hire purchase or contracting. The instalments are paid from the electricity savings.

Want to calculate an LED retrofit without funding?

Send us your existing lighting. We calculate savings and payback and prepare a free lighting plan with a no-obligation quote at direct-import prices 2–4× below comparable branded products.

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