The federal government is planning a new subsidy for heating replacement. Under certain conditions, a “climate bonus” is planned, as can be seen from a funding concept. It was available to the German Press Agency on Wednesday. It states that the reformed funding should support citizens in the necessary replacement of their oil and gas heating systems in existing buildings in a targeted and low-bureaucracy manner using funds from the climate and transformation fund.

A volume is not mentioned, but it should be a subsidy program in the billions. A paper states that the federal government will provide “sufficient funds” in the coming years.

The federal cabinet wants to launch the controversial plans for replacing the heating system this Wednesday. From 2024 onwards, if possible, every newly installed heating system should be operated with 65 percent renewable energies. This is intended to herald the departure from gas and oil heating systems.

Farewell to gas and oil

According to the funding concept, there should be a basic subsidy for all citizens in owner-occupied homes for the exchange of an old fossil for a new climate-friendly heating system. The subsidy rate is to be standardized at 30 percent.

In addition, there should be surcharges in the form of “climate bonuses” under certain conditions. Priority should be given to replacing old and particularly inefficient, oil- or gas-fired so-called . Constant temperature boilers and remaining coal stoves and night storage heaters in residential buildings, it is said. Due to the extension of the EU emissions trading system to the building sector, the operation of these heaters will be much more expensive for their owners in the next few years.

Low-interest loans

Specifically, there should be a climate bonus of 20 percent in addition to the basic subsidy for owners who receive income-related social benefits. There should also be a climate bonus of 20 percent in certain cases in which citizens are not obliged to replace their old heating systems under the new Building Energy Act.

In addition, a climate bonus of 10 percent is planned in various cases. In addition, promotional loans for the heating exchange are to be offered in order to create an offer in which the financial burdens are spread over time. Low-interest loans with repayment subsidies are to be granted. All citizens should be able to take advantage of this credit program.