From Tuesday, all apartment owners and homeowners can apply for government funding to replace old gas and oil heating systems with more climate-friendly alternatives. In addition to those previously eligible, landlords of single-family homes, as well as companies and municipalities, can now also submit applications. This was announced by the responsible development bank KfW. With the third round of funding for the controversial heating law, the process is open to all intended groups. Previously, private owners of apartment buildings and self-occupied single-family homes were allowed to request government support. Funding was also already possible for homeowners’ associations with central heating, for example. Up to 70 percent funding is possible. At least 30 percent funding is planned, regardless of whether it is a residential or commercial building. Up to 70 percent subsidy is possible – depending on income, speed and implementation of the heating replacement. An income bonus of 30 percent is provided for owners who live in their property themselves and have a taxable annual household income of up to 40,000 euros. By 2028, there will be a speed bonus of 20 percent for the early replacement of old gas and oil heating systems of night storage heaters and old biomass heaters for owner-occupiers. According to the ministry, there is also an efficiency bonus of an additional 5 percent for heat pumps that use water, soil or wastewater as a heat source or that use a natural refrigerant. The new heating law generally stipulates that from 2024 onwards, every newly installed heater will be 65 Percent must be powered by renewable energy sources. However, the regulations initially only apply to new buildings in a new development area. Functioning heating systems can continue to be operated.Expectations of the law have not yet been metAccording to the Federal Ministry of Economics (BMWK), around 93,000 promises have been made so far. The number also includes additional applications from owners in apartment buildings and home ownership communities. According to its own information, the BMWK expects an increase in funding figures due to the addition of the remaining groups. The number of subsidies per month has increased since it began in February, but is far below expectations. More on the topic Sales of heat pumps, for example, had recently collapsed, as the Federal Association of the German Heating Industry (BDH) announced at the end of July. 90,000 devices were sold in the first half of the year – a decrease of 54 percent compared to the same period last year. Last year was a record year for sales of heat pumps. When asked, the BMWK cited pull-forward effects and higher interest rates as possible reasons for the decline in sales this year. The BDH expects an increase in commitments due to the funding opportunity for additional groups. “We are therefore cautiously optimistic that the second half of the year will be better than the first,” said a spokesman when asked. The association still expects sales of a maximum of 200,000 heat pumps by the end of the year. The federal government had set the goal of 500,000 heat pumps being installed every year from 2024.
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