In the future, an average of 75 percent of the costs of a new heating system are to be replaced by federal and state subsidies. The ministry announced on Wednesday that federal funding for thermal renovation will triple from 100 euros to 300 euros per square meter in multi-story residential buildings. The new funding levels should apply from January 1, 2024.
However, the new funding must first be submitted to the Environmental Funding Commission for a decision. The decision is due to be made on December 12th.
To replace a gas heater there was previously a flat rate of 7,500 euros plus a “get out of gas” bonus of 2,000 euros. Technology-specific subsidies are now to be introduced in order to better reflect the different investment costs of the various heating systems, according to the ministry.
A single or two-family house should receive a flat rate of 15,000 euros if connected to local or district heating and even 23,000 euros if a water-water or brine-water heat pump is installed. In multi-story residential buildings, depending on the heating system, there should be up to 45,000 euros in basic federal funding plus 4,000 euros per residential unit for the centralization of the heating system. Previously, the basic funding was 15,000 euros and the funding per residential unit was 3,000 euros.
In addition, there should be surcharges for single- and two-family houses as well as for multi-story residential buildings when switching from gas to electric stoves, for drilling a geothermal probe when installing a geothermal heat pump, for switching to a low-temperature heat distribution system or for setting up a thermal solar system.
In addition to the federal funding, the respective subsidies from the federal states should remain at least at the same level as before. “With the new subsidies, replacing heating systems will be more attractive than ever before. There is around 75 percent funding to match the heating system chosen. And people with low incomes will receive 100 percent of the new heating financed,” said Climate Minister Leonore Gewessler.
The 100 percent funding should be available to people in the lowest third of income from 2024. Previously, the rule only applied to people in the bottom two income deciles.
In addition to heating replacement, subsidies for thermal renovation should also be significantly increased. In the future, single and two-family houses will receive a maximum of 42,000 euros for a comprehensive renovation, previously it was only 14,000 euros. In multi-storey residential buildings, the maximum funding will be increased from 100 euros per square meter to 300 euros per square meter.