Plumbing, heating and air conditioning (SHK) industry on the reduction of heating subsidies

The German government is planning to cut subsidies for heating systems. This comes at a bad time for the skilled trades. The plumbing, heating, and air conditioning (PHVAC) industry was not involved in the planning process.

The federal government needs to save money and is planning to... Promotion of heat pumps and other climate-friendly heating systems to be significantly reduced in the coming years. The subsidy amounts are to be cut. The reorganization of the federal funding program for efficient buildings (BEG), which also includes the subsidy for replacing heating systems, comes as a surprise to the skilled trades. "And it comes at a time when reliability and planning certainty are urgently needed," says [name/title missing]. Michael Hilpert, President of the Central Association of Sanitation, Heating and Air Conditioning (ZVSHK).

Michael Hilpert Photo: © ZVSHK

The main source of frustration is that the federal government did not include the plumbing, heating, and air conditioning (PHVAC) industry in its budget cut plans. This is the sector that deals with citizens every day about replacing heating systems and available subsidies and grants. "The tradespeople know very well what works and what doesn't," says Hilpert. 

The association president now expects even more uncertainty, more need for explanation, and even less trust in political reliability. "This not only burdens businesses but, above all, unsettles consumers who are facing investment decisions."

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According to the association, the exact details of the funding program are not yet fully known. Questions regarding future particulate matter limits, the verification process for the new local content bonus, transition periods, and implementation by KfW (the German development bank) remain unresolved.

The Budget Committee of the Bundestag is expected to discuss the proposed cuts on July 8th. According to media reports, the government aims to save approximately €2,1 billion by 2030 through the reduction in heating subsidies.

The association stated that it understands the federal government's need to save money and expressly supports this approach. It agrees that it is right to give greater consideration to social targeting and to specifically focus on particularly inefficient buildings. "However, policymakers are now moving far away from the promised reliable and adequate funding until 2029: the speed bonus and eligible investment costs are being drastically reduced, and the efficiency bonus and emissions reduction surcharge are being completely eliminated," said Hilpert. Unless electricity prices decrease, bureaucracy is reduced, and non-wage labor costs are lowered, the energy transition in the heating sector will simply be unaffordable for many households and businesses.

Source: ZVSHK

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