Industry representatives are calling for a faster phase-out of natural gas and oil by annually replacing at least 60,000 fossil heating systems with heat pumps or biomass boilers. For this, the funds in the double budget 2026/27 should be increased to 500 million euros annually. Currently, 360 million euros per year are planned for the years 2026 to 203, with up to 30 percent of the investment costs being subsidized. Previously, up to 75 percent could be subsidized. Since February, there are only subsidies for the replacement of boilers, no longer for energy renovations.

Increase in Fossil Heating Systems

However, the subsidy measures were not very successful last year: While there were sales declines of 20 to 35 percent for renewable heating technologies, the sales of fossil heating boilers increased by 10 percent to around 33,000 units, the Heat Pump Association Austria announced in a release. According to the association, around 1.2 million households in Austria currently heat with natural gas or oil. Approximately 10 billion euros are therefore transferred annually to the producing countries.

"Due to the energy price shock in 2022, 20 billion euros of domestic value creation flowed abroad for oil, natural gas, and coal," noted Franz Titschenbacher, President of the Austrian Biomass Association. With the Iran war and the possible closure of the Strait of Hormuz, the next energy price shock is looming.

The higher subsidy budget for renewable heating technologies would quickly pay off according to industry representatives, "since the budget revenues from taxes and wage levies through the production and installation of the systems are higher than the subsidies paid out only after the investment." However, the manufacturers of the systems as well as the wood and pellet producers have expanded their capacities - which are currently not needed. About half of the pellets produced in Austria are currently exported.

(APA/Red)

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