State subsidy for heating replacement remains in place

According to the German government, the generous state subsidy for replacing heating systems will remain in place. There are a few changes: Applications can now be submitted to the KfW again with immediate effect, orders can now be placed before the subsidy application and there is an acceleration bonus.

With the Renewable Heating Act - the Building Energy Act (GEG) - the German government is initiating the switch to climate-friendly heating systems. From mid-2028 at the latest, all new heating systems must use at least 65 per cent renewable energy.

Around three quarters of heating systems in Germany are fuelled by fossil gas or oil. The aim is to become climate-neutral by 2045. To achieve this, Germany must become independent of fossil fuels, particularly in the heating sector. Anyone investing in a new heating system today should do so sustainably. After all, the new heating system is usually used for 20 to 30 years.

The new Building Energy Act (GEG) stipulates that existing heating systems may continue to be operated. If a gas or oil heating system breaks down, it can be repaired. In the case of irreparable defects, so-called heating disasters, there are pragmatic transitional solutions and transitional periods of several years. In cases of hardship, homeowners can be exempted from the obligation to heat with renewable energies.

The replacement of an old heating system can already be commissioned now. Applications for funding can then be submitted to KfW from 27 February 2024.

- A basic subsidy of 30 per cent of the costs will be available to all homeowners, landlords, companies, non-profit associations and local authorities who replace old fossil fuel heating systems.

- Owner-occupiers can receive a speed bonus. The bonus is 20 percent until the end of 2028, after which it will decrease by three percent every two years, initially to 17 percent from 1 January 2029.

- A further 30 per cent of the subsidy depends on income: The limit is 40,000 euros taxable household income per year.

- For single-family homes, a maximum of 30,000 euros of the costs are eligible for funding. This also applies to the first flat in apartment blocks. Higher costs are subsidised for further residential units.

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