Energy - Industry facing record sales of new gas heating systems in 2023
This year, and therefore before the start of the new heating law, many homeowners have bought a new gas heating system.
The protracted and public debate surrounding the Building Energy Act (GEG) has resulted in a pull-forward effect, Ralf Kiryk, Head of Department at the Federal Association of the German Heating Industry, told the German Press Agency. "For the most part, people have quickly invested in gas heating to avoid the requirements of the GEG."
Great uncertainty among homeowners
A months-long debate about the new Building Energy Act, the so-called Heating Act, with the obligation to install climate-friendly heating systems, had caused great uncertainty among many homeowners. After a long struggle, the traffic light coalition then agreed on a compromise. The obligation for every newly installed heating system to be powered by 65% renewable energy from 2024 onwards will initially apply to new builds from January. There are longer transitional periods for existing buildings.
As the Federal Association of the German Heating Industry announced on request, the heating industry is heading for a record year in 2023. In its forecast for 2023 as a whole, the association expects around 1.3 million heating systems to be sold in Germany. By the end of October 2023, more than 1.16 million appliances had been sold - an increase of 43% compared to the same period last year.
The last time the heating industry experienced a similar market trend was in the 1990s, when the new federal states were thoroughly modernized.
Sales of gas heating systems up 38 percent
By the end of October, sales of gas heating systems had increased by 38 percent to around 694,500 units, while sales of oil heating systems rose by 107 percent to 94,500. Sales of heat pumps for heating systems increased by 75 percent to 320,500. However, interest in heat pumps has waned as a result of the GEG debate, according to the association. This was partly due to the long unclear funding situation regarding federal subsidies for efficient buildings. Applications for funding for heat pumps at the responsible Federal Office of Economics and Export Control fell sharply in 2023.
The member companies assume that the market will decline sharply in the first quarter of 2024, according to the federal association. "Our companies do not expect the Building Energy Act to stimulate the market."
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- The protest over the new Building Energy Act, commonly known as the 'Heating Act', has led to a surge in the purchasing of gas heating systems in Germany, as homeowners aim to avoid the requirements set by the act before its implementation.
- The traffic light coalition in Germany finally reached an agreement on the new Building Energy Act, which includes a stipulation that 65% of the energy used by new heating systems should be renewable from 2024, with exceptions for existing buildings.
- Ralf Kiryk, the Head of Department at the Federal Association of the German Heating Industry, stated that the debate surrounding the 'Heating Act' has led to a 'pull-forward effect', causing homeowners to make early purchases of gas heating systems amidst uncertainties.
- In the wake of the 'Heating Act' debate, heating systems sales in Germany are expected to hit a record high this year, with around 1.3 million units estimated to be sold, according to the Federal Association of the German Heating Industry.
- Despite the record sales in 2023, the heating industry forecasts a significant decline in sales during the first quarter of 2024 due to the implementation of the Building Energy Act, which is expected to negatively impact the market.
- In October 2023, the sales of gas heating systems in Germany saw a 38% increase, surpassing the 694,500-unit mark, while oil heating system sales and heat pump sales experienced double-digit growth.
- As a result of the 'Heating Act' debate, applications for funding for heat pumps at the Federal Office of Economics and Export Control decreased substantially in 2023, causing interest in heat pumps to fall as well.
Source: www.stern.de