Renting a heater – in the debate about the Building Energy Act, this might sound tempting for homeowners. But such models are by no means suitable for everyone, consumer advocates warn.
How will I heat my apartment or house in the future? The controversial Building Energy Act (GEG) is due to come into force at the beginning of 2024 and will ensure that heating in Germany is made more climate-friendly by gradually replacing oil and gas heating systems. But after the long hanging game, many consumers are unsure about future funding conditions and are holding back on investments. This means that rental and leasing models for heating systems are becoming more important. However, consumer advocates recommend that you read the small print carefully before signing a contract.
The model usually works like this: A service provider – in this case also called a contractor – concludes a heat supply contract with a property owner and binds them to them over a longer period of time. The contractor is responsible for installing the customer’s heating system, takes care of maintenance and repairs and also partially covers the costs of chimney sweeps and insurance. There are also 24-hour services in the event of disruptions. Customers pay a monthly flat rate, which also includes the financing costs of the system as well as the variable costs for the fuel for the heating system.
Providers and solutions
One of the providers is, for example, the Darmstadt energy supplier Entega. According to a spokesman, the company currently has around 300 contracts in the commercial heat supply business area; annual net sales in this area amount to around one million euros. The offer includes the installation, maintenance and repair as well as the operation of heating systems with an output of up to 50 kilowatts, including heat supply based on natural gas. The company has also developed a rental product with heat pumps – but in view of the debate and the regulations now made in the GEG, there is currently insufficient demand for this, said the spokesman. Instead, customers turned to conventional and cheaper natural gas solutions.
It’s important to look very closely at all offers, says Ramona Mittag from the North Rhine-Westphalia Consumer Center. She called for more transparency from providers, “to make it clear what I get and what I pay.” People usually decide on a new heating system for the next 20 to 30 years – given this long term, property owners often get a cheaper deal if they modernize their new heating system themselves and use subsidies. Given the relatively long contract periods, rental offers are also considered unsuitable for people who change their place of residence frequently.
They could be more interesting for older people who would find it more difficult to get loans for a new heating system – and for people who were looking for “all-round worry-free packages” for heat and electricity and could ultimately accept higher costs for this, said Mittag . In general, homeowners should focus on the question of how they can move their building towards climate neutrality in the long term and how they can invest in order to be able to operate their heating efficiently and cheaply. The expert expects that if more and more houses have their own photovoltaic systems, electricity storage systems, heat pumps and wallboxes for electric vehicles in the future, contracting models will become more important.
The supplier EWE, for example, has its sights set on such solutions with customers in northern Germany between the Ems, Weser and Elbe as well as in parts of Brandenburg and Mecklenburg-Western Pomerania. However, the natural gas rental heating business for private customers has been discontinued since July 1st and only heat pumps are offered in this area, a spokeswoman said. The existing 25,000 contracts are not affected by the decision; they will of course be fulfilled until the end of the contract.
Criticism of contracting offers
Last year, according to the industry association Vedec, the growth in contracts in the contracting sector was slightly lower than in 2021 (plus 11.9 percent), with an increase of 5.5 percent compared to the previous year to 78,562 contracts. This is also due to the uncertainties in connection with the Building Energy Act, according to the association’s homepage. This year, a contract increase of a similar amount is expected as in 2022, says Dave Welmert, climate and energy policy advisor at the association. In the future, however, growth is likely to increase again, also because the systems for supplying heat and energy to houses are becoming increasingly complex and around 19.4 million existing residential buildings nationwide would have to be converted.
Leonora Holling, Chairwoman of the Association of Energy Consumers, is critical of current contracting offers. This also includes certain district heating models, and there are exorbitant cost increases for some providers. Holling said she knows of those affected whose advance payments are higher than their rent. There is a self-service mentality that needs to be put to a stop. Some providers took advantage of the opportunity and the uncertainty among consumers caused by the new law. But many house and apartment owners find it difficult to financially manage their own investments in new heating systems – especially since only households with very low incomes can take advantage of the full funding volume. “You almost have to receive citizen’s money,” says Holling.
Source: Stern
