SPD: Funding for more climate-friendly heating systems costs several billion

By Andrea Thomas

BERLIN (Dow Jones) — The SPD parliamentary group estimates the cost of state subsidies for the installation of climate-friendly heating systems at “many billions” of euros. That said the deputy SPD parliamentary group leader Matthias Miersch. The money will come from the climate and transformation fund, but an exact estimate is currently not possible. The state will have to help people here for years to achieve climate neutrality by 2045.

“I just think that we have to ensure that these funds are made available by 2045 at the latest. We need a strong, effective state that puts people in a position to be able to pay for this infrastructure of the future,” said Miersch . He is sure that the current construct for funding will also work.

According to Miersch, there will be no exception to the obligation to install climate-friendly heating systems for people over 80. This was provided for in the original version of the Building Energy Act, also known as the Heating Act. Rather, the support program is linked to financial needs, since there is higher support for people with low incomes.

On Tuesday, the traffic light coalition of SPD, Greens and FDP agreed on details of the heating law, which stipulates an obligation to install heating systems with a 65 percent share of renewable energies. In total, funding of up to 70 percent of the costs should be possible.

This obligation to install more climate-friendly heating systems is to apply to new build areas from 2024. For other areas, the obligation to replace old or defective gas and oil heating systems with more climate-friendly devices depends on the existence of municipal heat planning. This heat planning should be available by 2028 at the latest. Until then, pure gas heaters may continue to be installed. After that, gas heaters can continue to be installed if the municipal suppliers offer climate-neutral gases such as green hydrogen or district heating. Otherwise, the installation of heat pumps, pellet heating systems or solar thermal systems is possible.

The new version of the Building Energy Act is currently being drafted and should be available by Friday. The Bundestag should then adopt the project next week with the votes of the coalition.

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(END) Dow Jones Newswires

June 28, 2023 08:39 ET (12:39 GMT)

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