Upcoming financing initiation for heating substitution.
The heating legislation has been a topic of discussion for a long time, and now, a decision has been reached. Those looking to transition to greener heating options can receive financial assistance from the government. The next round of funding has commenced.
A knowledgeable source advises anyone interested in this initiative to take immediate action.
Starting now, more organizations are eligible for state-funded assistance in replacing outdated gas and oil heating systems with more eco-friendly alternatives, as confirmed by the responsible bank KfW and the Federal Ministry of Economics. Since February 27th, owners of single-family homes who reside there have been eligible for government support in switching their heating systems. Nearly 27,000 applications have been recorded so far. The application process is available for landlords, private or public, in residential properties with central heating, as well as for owners in housing cooperatives who wish to renovate the heating in their personal apartments. This also applies to submissions for non-residential establishments.
What is the maximum funding available?
The maximum funding available is 70%, determined by specific conditions. Both residential and commercial buildings can receive 30% of the funds. There is an added efficiency bonus of 5% for heat pumps that employ water, soil, or natural refrigerants as a heat source, according to the ministry.
The speed bonus of 20% for promptly replacing old gas and oil heating systems, night storage heaters, and outdated biomass heating systems will be available to self-consuming homeowners until 2028. The bonus will then gradually decrease, beginning with a 17% reduction from January 2029. For homeowners with household income, taxable up to 40,000 euros, there is a 30% income bonus. A grant of 2,500 euros is given for biomass heating systems that adhere to a specific dust emission limit.
Those with KfW commitments for the heating exchange can apply for a low-interest loan through a bank - often their own. Applications can be submitted up until November 30th if started before August 31st.
Criticism
The housing and real estate industry is critical of the process due to its complexity. "The already convoluted funding is made all the more perplexing by the staggered application start," they contend. The homeowners' association also highlighted that the funds won't be distributed until September. The consumption advocacy organization (vzbv), however, commended the quickened and more user-friendly process.
The Central Association of Sanitary Heating and Air Conditioning encourages interested parties to act promptly. Director Helmut Bramann confirmed that supply issues with manufacturers and craftsmen are no longer a concern. Those who hesitate, he warns, risk complications in future municipal heating planning. "Therefore: act now, even while recognizing the shrinking flexibility in future federal budgets. Who knows how long the favorable funding environment will persist?"
The funding needs to continue after 2024, urges energy and construction expert Thomas Engelke from vzbv. "Since these budget funds must be included in the federal budget annually, the Federal Finance Minister must ensure this." Engelke cautioned against consumer anxiety due to potential funding suspensions or reductions. Grants are only available for as long as the funding remains untapped.
"We're assuming the funds are nearly depleted," shared a spokeswoman for the Federal Ministry of Economics. The ministry allocated approximately 16 billion euros in the current year for economic-efficient building funding, which encompasses various renovation measures such as roof insulation or window replacement.
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The Federal Ministry of Economics has announced that the Heating Law is now in effect, allowing for financial support for organizations seeking to switch from outdated gas and oil heating systems to more eco-friendly alternatives. As an advisor in climate policy, I encourage businesses and homeowners to take advantage of this opportunity and consult with the Ministry or KfW for more information.
The recent amendment to the Heating Law, implemented by the Federal Ministry of Economics, provides a 30% subsidy for both residential and commercial buildings undergoing heating system upgrades. Furthermore, the ministry offers an added efficiency bonus of 5% for heat pumps using water, soil, or natural refrigerants as their heat source.
Source: www.ntv.de
