Heat Pump Subsidy in Germany

Views: 115     Author: Site Editor     Publish Time: 2022-12-30      Origin: Site

The German government subsidies for heat pumps are designed to phase out natural gas and coal from heating systems. The goal is to assure the use of renewable energies at home. The transitional period will take a long time, and the subsidies are still under discussion, but they seem very promising in phasing out fossil fuels.


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Types of heat pump subsidies in Germany


  1. KfW Heat Pump Subsidy: This subsidy program is designed to support the installation of heat pumps in Germany that are powered by renewable energy sources. It provides up to €5,000 in financial support for single-family homes and €10,000 for apartment buildings.

  2. BAFA Heat Pump Subsidy: Federal Office for Economic Affairs and Export Control (BAFA) offers this subsidy. It covers up to 50% of the total cost of the heat pump installation, up to €3,000 for single-family homes and €6,000 for apartment buildings.

  3. State-Sponsored Heat Pump Subsidies: Several German states offer additional subsidies for installing heat pumps. These subsidies vary from state to state and can cover up to 50% of the total cost of the installation.

  4. Private Heat Pump Subsidies: Many energy companies in Germany offer subsidies for installing heat pumps. These subsidies usually cover up to 50% of the total cost of the installation.



The kfw subsidy



The kfw has announced a new program to support the installation of heat pumps in Germany. The program, which is part of the government's energy transition program, will provide up to 20,000 euros for households that install a heat pump. The subsidies will cover up to 75% of the installation cost and are available to households with an annual income of up to 60,000 euros.

The program will also cover up to 25% of the cost of a renewable-energy heating system, such as a solar thermal system. The program is expected to run until 2031 and is available to homeowners and renters.

The kfw benefits are part of the German government's energy efficiency program and are available to homeowners and landlords who install heat pumps for heat and hot water. The subsidy covers up to 30% of the costs of a heat pump and up to 50% of the costs of a solar-thermal system.

The grant is provided through the Kreditanstalt für Wiederaufbau (KfW) and is available for homeowners, landlords, and tenants responsible for their properties' heating costs. To qualify for the grant, the heat pump must meet certain energy performance criteria, such as a minimum efficiency of 2.5, and be installed on a residential property.

The kfw eligibility criteria for the heat pump subsidy in Germany are that the property must be located in Germany, the heat pump must be used to heat the property, and it must be an air-water heat pump or a groundwater heat pump.

The applicant must also show that they have taken steps to ensure maximum energy efficiency in the property and that installing the heat pump will result in long-term energy savings. The subsidy is only available to individuals and businesses with a yearly income of less than €50,000.



The Berlin subsidy plan



Berlin will create new electricity price subsidies for heat pumps and air conditioners, although the policy still needs to be finalized. By next year, the plan is to reduce the support.

The subsidy will be available for consumers with an annual heating bill of less than €2,000. The figure for the subsidy depends on the age of the heating system and its efficiency. In addition, a separate grant is available for low-income households.

This measure encourages more people to use heat pumps instead of electric boilers or gas hobs. Germany has a high dependency on gas hobs, which are inefficient when used alone in warm rooms.

In addition, there are big problems with air conditioning in Germany. Because of its central location, Berlin does not benefit from very good weather conditions, so most houses have to rely on air conditioning all year round.

This makes them very expensive and incentivizes people who don't need much cooling but can afford it to buy it anyway!



The German government's plan



The declining price of heat pumps (down by 50% in just six years) has also meant a corresponding drop in the cost of increasing their market share. The present sales figures are far below what would be needed to reach this goal, as euractiv.de reports.

The German government plans to introduce a subsidy program to give €200 to €300 per kW of the rated capacity of heat pumps and air conditioners installed. This would put another €200 million to €300 million into the market each year and help increase the share of heat pumps and air conditioners.

It is vague at this point if the subsidy will be for all heat pumps or just air source heat pumps. It also remains to be seen how long the subsidies will last and whether they will be implemented in all German states or just in certain ones.

The German government has already said that they want to reduce subsidies over time, as the market matures and becomes more competitive, to encourage private investment. The subsidies are part of a larger package of measures to reduce the energy consumption of buildings and households, as the government has set itself the goal of reducing the energy consumption of buildings and households in the future.

According to the German Heat Pump Association (BWP), around 50,000 heat pumps were installed in 2019, 40% of which were decentralized systems that use groundwater or geothermal energy.

The government's subsidy plans include a €2,000 reduction in the purchase price of decentralized heat pumps and a €1,000 reduction for air conditioning systems. In addition, the government is considering a €2,000 reduction in the installation cost of decentralized heat pumps and €1,000 in the installation cost of air conditioning systems.

The subsidies are part of the government's plan to bolster the share of renewable energy in the country's total energy mix. The government has set a target of 60% of Germany's total energy consumption to be met with renewable energy sources by 2030. Heat pumps will play a major role in helping Germany meet this target.



State-sponsored subsidy



Germany plans to install 600,000 heat pumps a year by 2030 – but only if they can be done cheaply enough. Many factors make an ambitious target feasible, including energy savings and future-proof solutions for heating buildings and hot water in one efficient system. The German government is offering a subsidy for installing heat pumps to help make them more affordable.

The subsidy covers up to 35% of the total costs, with a maximum of €4,000 per unit. The subsidy is available to households and businesses and can be applied to new builds and renovations. The subsidy is part of the German government's effort to reduce emissions and to meet its targets of 45% lower emissions by 2030.

Heat pumps are an integral part of this effort, as they are energy-efficient and may be used to reduce energy consumption and reliance on fossil fuels. The government also offers tax incentives to encourage people to choose heat pumps instead of other heating systems.

With the subsidies and incentives, it is hoped that heat pumps will become increasingly popular and affordable in Germany, helping the country to meet its emissions targets.



What's the role of tax incentives?



The government is offering tax incentives to encourage people to choose heat pumps instead of other heating systems. With the subsidies and incentives, heat pumps will become increasingly popular and affordable in Germany, helping the country to meet its emissions targets.

The German government has approved €600 million for the scheme, with the annual subsidy amount per heat pump capped at €2,500. The figure will be revised upwards to €1,000 if a technology partner provides evidence that the heat pump efficiency is higher than specified in tender documents.

The subsidy covers up to 40% of the cost of a heat pump, with the remaining 30 % of the cost to be borne by the applicant. For you to qualify for the subsidy, the following criteria must be met:

  • The heat pump needs to meet the requirements of German energy efficiency regulations.

  • The heat pump must provide at least a 40% reduction in energy consumption compared to the alternative heating system.

  • The heat pump has to be set up in a residential or commercial building.

  • The heat pump has to be installed by a certified installer.

  • The applicant must provide proof of ownership of the building.

  • The applicant must provide proof of payment for the heat pump

  • The applicant must provide proof of energy savings achieved.



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Take away



The national target set in the first German National Energy Efficiency Action Plan under EU law is to increase the number of heat pumps installed annually from around 100,000 in 2017 to around 500,000 by 2030.

Germany is one of the few European countries that subsidizes heat pumps. The subsidy is available for buyers of heat pumps with higher energy consumption than usual who cannot afford a costly heating system. Additionally, installing SPRSUN heat pumps is not expensive and their products are worthy of the cost. Visit the website for more details.

The national target set in the first German National Energy Efficiency Action Plan under EU law is to increase the number of heat pumps installed annually from around 100,000 in 2017 to around 500,000 by 2030.

The subsidy is paid directly to the installer. The amount depends on your annual consumption; however, it can range from €1,500 to €2,500 depending on how much energy you use per year. But in general, most subsidies in Germany cover up to 50 % of the expenses of installing a new heat pump.

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