The “Heating Act” has cleared the next hurdle before it is passed in the Bundestag. The Committee on Climate Protection and Energy has passed the legislative plans, as MPs announced on Wednesday in Berlin. The Bundestag is to decide on the project on Friday morning. In essence, the Building Energy Act (GEG) provides that in future only heating systems that can be operated with at least 65 percent renewable energies may be installed in the future. The switch is to be funded with up to 70 percent of the costs.

According to the plans of the traffic light groups, a maximum of 30,000 euros in expenditure for a building with one residential unit should be eligible for the heating exchange (“heat generator”), as can be seen from the draft for a motion for a resolution on the GEG by the SPD, Greens and FDP. At 70 percent, this is 21,000 euros. This EUR 21,000 subsidy is granted if the “heat generator” costs at least EUR 30,000. Costs in excess of 30,000 euros will therefore not be subsidised. This means that even with a heating price of 32,000 euros, the state subsidy would be 21,000 euros if the full maximum subsidy rate of 70 percent applies.

Window replacement or insulation should also be funded

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. In the case of homeowners’ associations, the regulation should be applied accordingly, in the case of non-residential buildings, similar limits based on the number of square meters apply.

In addition, according to the motion for a resolution, there is a subsidy for building efficiency measures such as window replacement, insulation, system technology. The maximum eligible investment costs for efficiency measures should be EUR 60,000 per residential unit if a renovation roadmap is submitted, or EUR 30,000 without a renovation roadmap. These efficiency measures are to be funded with up to 20 percent.

So far, the maximum amount for subsidies was 60,000 euros for all measures (per residential unit) – now it is 90,000 euros with the renovation plan (for a house with one residential unit).

The application also states that, in addition to investment cost subsidies, there should be low-interest loans with long terms and repayment subsidies.