The Building Energy Act (GEG): Subsidies and Guidelines for Climate-Friendly Heating Systems

2023-07-04 20:13:55

It was complicated, but now the traffic light parties are in a hurry: The Building Energy Act (GEG) – colloquially known as the Heating Act – should be decided this Friday. Today, the traffic light factions specified the planned funding for the gradual switch to more climate-friendly heating systems. What subsidies can citizens expect when exchanging their old heating system for a new one?

Up to 30,000 euros eligible investment costs

The traffic light fractions imagine it like this: if the owner of a single-family home installs climate-friendly heating, up to 30,000 euros of the total bill can be subsidised. And at most 70 percent. This means that the state pays a maximum of 21,000 euros for a heating conversion. This emerges from the draft for a motion for a resolution on the GEG, which is available to the ARD capital studio. For heating systems that can be operated with hydrogen in the future, only the additional costs for the “H2 readiness” of the system are eligible.

According to the application, the maximum eligible costs for apartment buildings should be EUR 30,000 for the first residential unit, EUR 10,000 each for the second to sixth residential units, and EUR 3,000 each for the seventh residential unit. The background is that multi-family houses usually have central heating – so no individual systems are necessary for each apartment.

In the case of homeowners’ associations, the regulation should be applied accordingly, in the case of non-residential buildings, similar limits should apply depending on the number of square meters. Capping the subsidy is also intended to prevent possible price usury for new heating systems. If the state were to pay a percentage of the total bill without a limit, heating contractors would possibly charge higher bills.

Landlords and non-profit organizations receive basic funding

SPD parliamentary group deputy Achim Post said: “Especially citizens with small and medium-sized incomes, we give a lot of support when replacing the heating system – with a subsidy of up to 70 percent.” Landlords, non-profit organizations and municipalities would also be supported with basic funding.

“Combustion heaters for gas and oil are still not being subsidised,” said Greens Vice-Chairman Andreas Audretsch. “It’s regarding social promotion of the switch to climate-friendly heating systems.” The application is to be decided by the Bundestag on Friday with the Building Energy Act.

The federal government is thus given guidelines for funding. She is asked to submit the funding concept to the Budget Committee of the Bundestag by September 30th.

What are the core points of the Building Energy Act?

The controversial building energy law stipulates that from January 1, 2024, only heating systems that are operated with at least 65 percent renewable energies should be installed in new buildings. For existing buildings, there should initially be no obligation for a new heating system, but various options.

However, none of them should encroach on private property or include bans, which the FDP pushed through in the last few meters. However, it has long been the case that fossil heating systems that have not been renewed for over 30 years must be replaced. It should stay with this rule.

If the old gas or oil heating system is irreparably broken, then a transition phase begins, at the end of which a new, non-fossil heating system should be installed. At least that’s what the law says. Until then, the classic systems can also be installed and operated temporarily, but following that they must finally be replaced with an energy-efficient heating method. But there should be one exception: If the newly installed heater is operated with gas, but can also be connected to hydrogen lines (“H2 ready”), it can remain in there permanently.

All of this should only apply to the heating exchange in the existing building when there is a municipal heating plan that also shows whether a connection to district heating or a hydrogen network will be possible. These heating plans should be available throughout Germany by mid-2028 at the latest.

FDP warns once morest compulsory heat pumps through the back door

FDP parliamentary group leader Lukas Köhler emphasized that people might decide for themselves as part of municipal heating planning whether they would like to install a gas heating system that can be converted to hydrogen, a wood heating system or a heat pump. He warned once morest far-reaching European requirements. In their application, the traffic light groups call on the federal government to “attempt a harmonization of relevant EU legal acts along the Building Energy Act at European level”.

The background is, among other things, an update of an EU law on specifications for the efficiency of new heating devices, which according to the draft might apply from 2029. Heaters should therefore have an efficiency of at least 115 percent. Critics see it as a heat pump requirement through the back door.

Söder continues once morest the heating law

Bavaria’s Prime Minister and CSU party leader Markus Söder wants to continue to campaign once morest the heating law. “I’ll say it for the Union: We would completely revise this law following the next federal election and also abolish it once more,” said Söder on the ARD talk show “maischberger”. Söder once more criticized the federal government’s schedule: “Pushing it through the Bundestag now, putting pressure on the Bundesrat with an extension of the deadline, I think is fundamentally the wrong way.” That is why the CSU will vote once morest the law.

With information from dpa and reuters

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