Home constructors waste money through gas heating applications
In modern construction projects, heat pumps have taken over as the primary heating method. However, gas heating still holds a substantial portion of the market. Homeowners who opt for gas heating should brace themselves for rising prices.
The vast majority of new buildings in Germany are warmed by heat pumps, but about 20% still rely on gas heating - financially, it's a questionable decision. Not only do individuals with efficient heat pumps enjoy immediate cost savings. The financial risk looms large in the future. Gas prices are volatile, and there's a strong possibility of further price spikes.
Gas market expert Sebastian Gulbis predicts that European gas markets will remain volatile. He cites potential demand-side events like a harsh winter or supply-side disruptions as factors that could push prices skyward. Additionally, political uncertainties remain, including the outcome of US elections and future gas exports from the USA, and speculation about Russia's continued gas supply to Austria and Italy via Ukraine.
Gas prices have risen again, primarily due to increased demand for liquefied gas in Asia. In previous years, the gas price surge caused by the Ukraine conflict had stabilized - thanks to mild winters, well-stocked gas storage facilities, careful consumption, and good supply from Norway. However, the growing demand for liquefied gas in Asia is pushing European prices up.
The Building Energy Law allows for the continued installation of gas boilers, but with an increasing share of renewable energies like biogas or hydrogen. The cost of these currently scarce green gases is uncertain, and there's speculation about how the CO2 price will develop and whether politics will intervene if prices become excessively high.
In existing buildings, gas heating can still be less expensive than a heat pump, given the necessary building shell renovations. However, in new constructions, the economic advantage of gas heating over heat pumps, when considering available funding, is questionable.
The rise in electricity prices is also anticipated. Electricity market expert Mirko Schlossarczyk explains that system costs - network fees, taxes, fees, and levies - are a significant part of the end customer price and will likely increase due to the enormous costs of the energy transition.
Efficient heat pumps can save homeowners up to 600 Euros per year, but they come with higher upfront costs compared to gas heating systems. State subsidies are available for heating pump installations, and the higher costs are usually recovered after about ten to fifteen years. Individual households are advised to consult with an energy advisor to determine the best heating system for their needs.
The cost of future heating systems will depend on future federal governments, as the Union plans to revise the Heating Law if they win the elections. However, it's still uncertain what specific changes the CDU may implement, and it will be over a year until the next federal election.
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Homeowners who rely on gas heating for their heating needs should be aware of the potential increases in gas price due to market volatility and potential supply-side disruptions. The Heating Law allows for the installation of gas boilers, but with an increasing share of renewable energies like biogas or hydrogen, the cost of which remains uncertain.
Given the volatile gas prices and the potential for further price spikes, it may be financially wise for homeowners to consider transitioning to heat pumps. Despite the higher upfront costs, efficient heat pumps can save homeowners up to 600 Euros per year in heating costs and are eligible for state subsidies, with the higher costs often recovered after about ten to fifteen years.
