2024-08-27 21:00:33
The Heating Act is still controversial today. With the third round of funding, the last designated groups are now eligible to apply. But is the law having the desired effect?
Since Tuesday, all apartment and house owners have been able to apply for state funding to replace old gas and oil heating systems with more climate-friendly alternatives. In addition to those previously eligible, landlords of single-family homes, as well as companies and municipalities, can now also submit applications. This was announced by the responsible development bank KfW.
With the third round of funding for the controversial heating law, the process is now open to all the intended groups. Private owners of apartment buildings and owner-occupied single-family homes were previously able to request state support. Funding was also already available for homeowners’ associations with central heating, for example.
At least 30 percent of funding is provided, regardless of whether it is a residential or commercial building. Up to 70 percent subsidy is possible – depending on income, speed and implementation of the heating system replacement. For owners who live in their own property and have an annual taxable household income of up to 40,000 euros, an income bonus of 30 percent is provided.
By 2028, a speed bonus of 20 percent will be added for the early replacement of old gas and oil heating systems as well as night storage heaters and old biomass heating systems for owner-occupiers. According to the ministry, there is also an additional efficiency bonus of five percent for heat pumps that use water, soil or wastewater as a heat source or use a natural coolant.
The new heating law generally stipulates that from 2024 onwards, every newly installed heating system must be powered by 65 percent renewable energy. However, the regulations initially only apply to new buildings in a new development area. Heating systems that are already functioning can continue to be operated.
According to the Federal Ministry for Economic Affairs and Energy (BMWK), around 93,000 commitments have been made so far. This number also includes additional applications from owners of multi-family houses and homeownership associations. The BMWK says it expects the number of grants to increase as a result of the addition of the remaining groups. The number of grants per month has increased since it began in February, but is still far below expectations.
Sales of heat pumps, for example, have recently collapsed, as the Federal Association of the German Heating Industry (BDH) announced at the end of July. 90,000 devices were sold in the first half of the year – a decrease of 54 percent compared to the same period last year. Last year was still a record year for the sale of heat pumps. When asked, the BMWK cited pull-forward effects and higher interest rates as possible reasons for the drop in sales this year.
The BDH expects an increase in commitments due to the funding opportunity for additional groups. “We are therefore cautiously optimistic that the second half of the year will go better than the first,” a spokesperson said in response to a query. The association nevertheless expects sales of a maximum of 200,000 heat pumps by the end of the year.
The federal government had set the goal of installing 500,000 heat pumps every year from 2024.