With the implementation of the Building Energy Act on January 1, 2024, Germany will accelerate its heating transition, and the current heating methods dominated by fossil fuels such as natural gas and fuel oil will gradually be replaced by cleaner, low-carbon, efficient and economical renewable energy heating technologies. As part of this transition, Germany** will use the existing German Federal Funding Scheme for Energy-Efficient Buildings (BEG) to subsidize renewable energy heating systems.
Subsidies related to renewable energy heating systems
Currently, the latest revision"German Federal Funding Scheme for Energy-Efficient Buildings" (BEG).will beReplacing old fossil fuel heating systems with renewable energy heating systems provides an investment subsidy at a base subsidy rate of 30% of the investment cost；In addition to the basic subsidy, BEG also offers additional subsidies based on different specific conditions, including:
To promote efficient heating technologies, an additional 5% energy efficiency subsidy is available for the use of efficient heat pump systems; A one-time flat subsidy of €2,500 is available for low-emission biomass heating systems;
Owners who replace their aging fossil fuel heating systems earlier than the legal deadline can receive climate acceleration incentives of up to 20%;
For the first time, BEG is offering an income subsidy of up to 30% for owner-occupiers with an annual taxable household income of up to €40,000.
All of the above subsidies are cumulative, and taken together, use renewable energy heating systemsUp to 70% investment subsidy is available
Other individual energy-saving measures
In addition to replacing the heating system with renewable energy, BEG is also a heating systemIndividual energy-saving measuresSubsidies such as enhanced insulation of building facades are availableUp to 20% investment subsidy: The basic subsidy rate is 15%, and if the owner has a separate home renovation plan, he can also receive a 5% incentive.
Support for building retrofits in Germany** is not limited to financial subsidies, but also allows owners to obtain supplementary loans from banks for the replacement of heating systems and other energy-saving measures. Approval from the KfW (KFW) or the Federal Agency for Economic Affairs and Export Control (BAFA) (for other energy-saving measures) is a prerequisite for KfW's (KFW) (for the replacement of heating systems). All applicants can get a loan at a preferential interest rate below the market rate. Owner-occupiers with an annual household income of up to €90,000 are eligible for a preferential loan with an additional interest rate from federal funds.
Although BEG grants to building owners who have invested in the renovation of their heating systems. But tenants also benefit indirectly, as landlords will receive a basic subsidy to replace the heating system, take energy-saving measures and completely renovate the premises. The cost reduction from the subsidy for landlords, while not directly benefiting tenants through rent, will dampen rents due to energy-efficient retrofits**.
The new sustainable heating subsidy policy also sends a signal to the public that the German Confederation** supports its citizens to invest in green and low-carbon heating systems, and the new financial subsidy is also socially oriented, so that more low-income groups can benefit from it.
*: Sino-German energy cooperation.