The Federal Funding for Efficient Heat Networks (BEW) will begin in mid-September, with €2.98 billion allocated for implementing green district heating until 2026, AgrarHeute reported.
Financing can be obtained by energy supply companies, municipalities, and cooperatives for investments in heating networks.
A prerequisite is using renewable energy sources or waste heat for heat supply. A cooperative can apply for a subsidy if it builds a heating network in a new development area.
Economy Minister Robert Habek said: “Green district heating networks are the key to climate-neutral heating and are critical to reducing our dependence on fossil fuel imports.”
EU Competition Commissioner Margrethe Vestager said the regulation contributes to the goals of the European Green Deal. By increasing the share of renewable energy and waste heat in heating, Germany will reduce CO₂ emissions.
At least 75% of heat must come from renewable sources or waste heat to receive funding. It is possible to subsidize up to 40% of network construction costs. Investments in solar thermal systems, heat pumps, biomass boilers, heat storage, pipelines, and thermal plants are subsidized.
The operating costs of heat pumps powered by electricity and solar thermal systems are subsidized for 10 years.
The program is estimated to contribute to the annual generation of 681 MW of thermal energy from renewable sources. Ecologists hope to save up to 4 million tons of carbon dioxide emissions annually.
Germany doesn’t have a single heating standard. There are different types of heating in different regions, but central heating is quite rare, mainly in large cities. This initiative is aimed primarily at the rural population, where the issue of heating is solved individually.