Funding for Energy Advice Cut in Germany
The German Federal Ministry of Economics has unexpectedly reduced the funding rate for its energy advisory program. Effective August 7th, subsidies for energy consultations will be reduced from 80% to 50%.
The ministry cited the “overall budgetary situation” as the reason for the cut. Applications for energy advice in residential buildings have surged, reaching 80,000 by July 2024, compared to 10,000 in 2019 and 130,600 for the whole of 2023.
Despite the reduction, subsidies for homeowners who renovate and receive energy advice remain unchanged. Additionally, those who receive detailed advice before renovating a building will receive higher subsidies for relevant measures.
The ministry clarified that applications that have already been submitted will receive funding at the previous rate, regardless of when approval is granted.
New Mandate: Energy Advice for New Gas Heating Systems
From 2024 onwards, energy advice will be mandatory before installing a new gas heating system. Homeowners must receive comprehensive information from an energy advisor regarding the cost of carbon dioxide and potential costs associated with the new system before installing such a heating system.
Energy Advice: A Stepping Stone to Renewables
The ministry emphasizes that energy advice is a crucial first step towards transitioning to renewable energy sources. For homeowners unsure where to start their renovation journey, energy advice and an individual renovation roadmap (ISFP) are essential.
The reduction in energy advice funding echoes the sudden cancellation of electric car subsidies in December 2023, which was also justified by budgetary constraints. However, the market for electric cars has since recovered.