What's the tax credit for smart thermostats?

Written by Nele

Edited on

16 September 2025

·

12:47

What's the tax credit for smart thermostats?

Since 1 January 2020, the German government has been subsidizing energy-saving renovations to owner-occupied residential buildings. This tax credit under Section 35c of the Income Tax Act can also be used to subsidize a smart thermostat. We'll tell you how to claim this subsidy for smart thermostats.

Renovation work on a house

What's being subsidized?

The tax credit for smart thermostats was introduced as part of the 2030 Climate Action Programme in tax law. You can claim money on your tax return if you take energy-efficient measures in your house. This includes insulating walls, replacing heating systems, and installing energy-efficient thermostats, for example. The subsidy covers material costs and installation costs.

Smart thermostat on a wall

Subsidy for your smart thermostats

With a smart thermostat, you can save energy by monitoring your consumption better or turning down the heating via an app when you're not home. You'll get 20% of the material and installation costs back in total. You can claim 7% of your costs back in the year you purchase the thermostat. Another 7% in the following year, and another 6% in the second year.

All smart thermostats
Control a smart thermostat with a smartphone

This is what you need for the funding

In order to claim your expenses at the tax office and on your tax return, your house must be over 10 years old and the renovation must take place between 31 December 2019 and 1 January 2030. Make sure you have the following documents ready for your application:

  • The certificate from the contractor confirming the installation
  • All invoices for the thermostat and installation by a professional
  • A (sample) certificate from the contractor for the tax office

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Article by Nele

Thermostat Expert.

Nele