This is what the new heating subsidies will look like from 2024 - this is what you need to know as a financial expert

This is what the new heating subsidies will look like from 2024 - this is what you need to know as a financial expert

According to a report from www.n-tv.de, the federal government has decided on new heating subsidies that will come into force on January 1, 2024. This funding is intended to accelerate the switch to climate-friendly heating in existing buildings and take social hardships into account. There is a basic subsidy of 30 percent of the investment costs as well as various bonuses for heat pumps, solar thermal systems or biomass heating systems. In addition, there is an income bonus of 30 percent of the investment costs for self-occupying homeowners with a taxable household annual income of up to 40,000 euros. A speed bonus amounting to 20 percent of the investment costs is intended to encourage early conversion to climate-friendly heating. There is also a maximum limit on the eligible costs for heating replacement.

The funding should be able to be combined, but only up to a maximum funding rate of 70 percent. The maximum eligible investment costs for replacing the heating system are 30,000 euros for a single-family home. There are separate upper limits for apartment buildings. The funding can also be combined with low-interest loans of up to 120,000 euros per residential unit.

The new regulation for heating subsidies is viewed positively by some industry associations. The promotion of individual measures such as replacing heating systems is more targeted and will reach more people, especially through the speed bonus. According to Stefan Bolln, chairman of the energy consultants' association GIH, the funding will not cause euphoria, but will be satisfactory overall. Martin Sabel, managing director of the Federal Heat Pump Association, emphasizes the urgency of the funding coming into force on time on January 1, 2024 in order to end the uncertainty in the industry.

This funding is expected to have a positive impact on the market for climate-friendly heating systems by creating financial incentives for homeowners to switch to renewable energy. This may increase long-term demand for such heating systems, which may lead to growth in the industry. The funding could also help to achieve climate protection goals in the building sector more quickly.