Advancement

New: More attractive support for heating exchange

In connection with the climate resolutions of the German Federal Government, numerous changes in heating subsidies will take effect from January 1, 2020.

1. Program "Heat from Renewable Energies": Grants increase

The amended directive of the Market Incentive Program (MAP) "Heat from renewable energies" provides grants for the following investments from the beginning of January 2020:

  • 35 % for wood boilers and heat pumps
  • 30 % for gas hybrid heating systems with a renewable energy share of at least 25%
  • 20 % for gas condensing boilers that are prepared for the later integration of renewable energies ("Renewable Ready")
  • This also means that the solar thermal systems are subsidised with 30% when replacing an old oil boiler by an oil condensing boiler in combination with a solar thermal system.

The subsidiary system of the Market Incentive Program is greatly simplified with the amendment. The uniform percentage support rates replace the fixed amount support with a variety of different bonus schemes.

Applications for the investment grants for energy-efficient and climate-friendly heating are available at the Federal Office of Economics and Export Control (BAFA) from 02.01.2020.

2. Exchange premium for oil heatings

The exchange premium for oil heatings is new from January 2020.

  • Anyone who replaces their oil heating system with a heating system that runs entirely on renewable energy - e.g. a heat pump or a biomass system - can receive a grant of 45% of the investment costs.
  • For gas hybrid heating systems with a renewable share of at least 25% - e.g. via the integration of a solar thermal system - there is an investment subsidy of 40%.

Source: BAFA

Eligible costs are the acquisition costs of the heating system and the installation costs. These are capped at € 50,000.

3. Tax incentive

Also new from 2020 is the tax incentive for energy-related renovation measures on owner-occupied residential property. Homeowners can thus deduct 20 percent of the heating system's investment costs from the tax liability over three years. The same heating technologies are funded as in the Market Incentive Program (MAP).

The renovation is carried out by a specialist company that certifies the correct implementation of the measures and has to issue an invoice for it. This invoice is submitted to the tax office with the tax return.

The simultaneous claiming of the tax incentive and the incentive program is not possible.