“Can be significantly more expensive”: Ministry: Don’t rush to buy oil or gas heating

“Can be significantly more expensive”
Ministry: Don’t rush to buy oil or gas heating now

Many people are considering buying an oil or gas heating system before the planned ban from 2024. According to the Ministry of Economic Affairs, this could not be worthwhile in the long term compared to installing a climate-friendly variant.

In view of the expected ban on new oil and gas heating systems from next year, the Federal Ministry of Economics is warning of knee-jerk reactions. “Simply sticking to oil and gas for as long as possible can be significantly more expensive in the long term than switching to climate-friendly heating in the next few years,” said Parliamentary State Secretary Stefan Wenzel “Zeit Online”. “You shouldn’t make a hectic decision now to have another oil or gas heating system installed while it’s still possible,” said the Greens politician.

A joint draft bill by the Ministry of Construction and the Ministry of Economics stipulates that from 2024 oil and gas heating may no longer be installed in new buildings. It was agreed in the coalition agreement that from 2025 all newly installed heating systems must generate at least 65 percent of their heat from renewable energy sources. According to experts, this is not feasible with oil and gas plants.

Landlords could get tax breaks

The draft bill caused criticism within the coalition. The FDP goes the project too far. Wenzel still expects it to come into force on time: “I firmly assume that the law will come into force on January 1, 2024 as planned,” he told Zeit Online. “Time is of the essence,” stressed Wenzel. “We have to reduce our dependence on Russia as quickly as possible. And we want to be climate-neutral by 2045, which means that we now have to gradually start replacing fossil-based heating systems with others.”

Wenzel said that support measures are also important for the project. “We also have to create incentives for landlords, for example,” he said. “It is already anchored in the Income Tax Act that energetic refurbishment measures, such as replacing the heating system or insulation measures, can be tax-deductible for owner-occupiers. This approach could be extended to landlords and businesses.” In the interview, the Green politician also referred to the 40 percent subsidy for heat pumps that use geothermal energy, as well as the federal program for efficient buildings and that for efficient heat.

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