Homeowners dread the cost of installing a heat pump. The state promises billions in funding – but there is no plan for it yet.
Germany is discussing the heat transition. Ever since Federal Economics Minister Robert Habeck (Greens) presented his draft for a new building energy law at the end of February, there has been a great deal of excitement: Homeowners in particular see high costs coming up.
The state must support, so Habeck demands: “Climate neutrality must not and will not become a social problem.” He speaks of a “billion-dollar program”. However, it is still unclear how this is to be implemented. Only one thing seems clear: the heat transition will not be cheap.
In the coalition agreement, the SPD, Greens and FDP had agreed that from 2025, 65 percent of newly installed heating systems must be operated with renewable energies. In view of the oil and gas crisis as a result of Russia’s war of aggression against Ukraine, they agreed last year to bring the heating transition “if possible” forward by a year.
In February, however, there was no longer any mention of “as possible” in the said draft law from Habeck’s ministry. Instead, it said: The installation of new gas and oil heating systems should be over by the end of this year. Millions of Germans are now asking themselves: What is all this going to cost?
Up to 20,000 euros acquisition costs – despite funding
Therefore, there are already opportunities to get the state to help you with financing. With funding from the responsible Federal Office for Economics and Export Control (BAFA), however, homeowners can still expect between 10,000 and 20,000 euros.
Last year, BAFA approved funding applications for 200,000 heat pumps to replace old heating systems. The federal government has set itself the target of around 500,000 newly installed heat pumps per year by 2024 – the need for support will therefore increase significantly.
“Don’t overwhelm the citizens”
And that’s what we want. In response to a t-online request, the Federal Ministry of Economics said: “Since not every household is able to bear the investment costs for a new heating system”, the obligation to use renewable heating must be accompanied by suitable support measures. “The aim of the funding is to ensure that the costs of a heat pump do not overwhelm low-income households and middle-income citizens in particular.”
The problem with all of this: the installation of a heat pump is often not enough. Although the systems are extremely energy-efficient, good thermal insulation and large heating surfaces are required, for example in the form of large radiators or underfloor heating. Otherwise, the same room temperature can hardly be achieved with a heat pump as with a gas or oil heating system.
Thus, for owners of older buildings in particular, replacing the heating system can become a major refurbishment, including costs in the higher five-digit range. The need for support will therefore also increase here in the foreseeable future.
More money or redistribution?
So it’s a lot of money at stake. The funding pots that Habeck now wants to set up would have to be correspondingly large. But it is still unclear how he intends to fill it.
One possibility would be to expand the “Federal Funding for Efficient Buildings” (BEG), from which the funding for heat pumps is already coming. It was reformed last year and geared towards energy-related renovations. 18 billion euros were approved for this in 2022. For the year 2023, 12.8 billion euros are expected to be available. The Ministry of Economic Affairs expects an annual sum of around 12 to 13 billion euros in the years to come.
