Maintained backing for heat pump following promise
Switching to climate-friendly heating alternatives might spark some worry among homeowners due to the potential influence of a new government on subsidies. Luckily, the federal subsidy for heat pump installation remains secure, according to the Ministry of Economics. The "Federal Funding for Efficient Buildings" (BEG) program will continue to meet all legal obligations, as confirmed by a spokesperson from the ministry. So if you've applied for and received a positive response, you can trust in your subsidy – except in the unlikely event of misinformation during the application process.
In recent times, interest in switching from fossil heating to eco-friendly alternatives has been on the rise. Homeowners of single-family residences can apply for state funding for renewable heating system replacements since February 27, 2024. This policy has now been extended to private owners of multi-family homes, including landlords, and apartment owner associations with central heating.
The funding for private households with modest and middle incomes reaches up to 70%. Applications have been growing, with 35,800 submissions since January of this year, mostly for heat pump installations. Since 2024, funding applications have been promptly approved in most cases.
The funding initiative is closely tied to the Heating Law, also known as the Building Energy Act, which has been in effect since the beginning of 2024. It stipulates that starting in 2024, new heating systems must operate with a 65% renewable energy share. This requirement initially applies to newly constructed buildings in development zones, although transition periods are allotted for older buildings and constructions outside development zones.
With the unpredictability surrounding government incentives, the heat pump market has experienced a surge in demand. Although installing heat pumps can incur significant costs, homeowners are proactively capitalizing on existing subsidies and preparing for potential regulatory changes. The industry faces challenges to meet national climate targets, with heat pump sales falling from 356,000 units in 2023 to 192,000 in 2024. Boosting sales numbers is vital to attain these objectives.
So, while the current subsidies afford homeowners ample support to switch to climate-friendly heating options, the future of these incentives remains uncertain and may be affected by upcoming government policies. Homeowners should act promptly to maximize their benefits from current subsidies and be prepared for potential policy modifications in the future.
The subsidies for heat pump installations are not limited to single-family homes; they also extend to private owners of multi-family homes, including landlords and apartment owner associations with central heating, starting from 2024. The spokeswoman added that other types of motor vehicles, such as electric vehicles, might also benefit from these subsidies in the future, depending on government policies. Despite the surge in heat pump sales due to subsidies, their future availability is uncertain and may be impacted by policy changes in 2024.
