Germany plans significant cuts to heat pump subsidies

The German federal government intends to gradually decrease subsidies for heat pumps and other environmentally friendly heating systems in the coming years. This plan, detailed in a document for the Bundestag's budget committee, aims to achieve significant savings for the government.

By 2030, the government expects to save around 2.1 billion euros through these reductions. Currently, subsidies can cover up to 70 percent of the costs for switching to a climate-friendly heating system, with a maximum investment cost subsidy of 21,000 euros.

However, this maximum amount is set to be progressively lowered. For households with an annual income exceeding 30,000 euros, the maximum subsidy will decrease to 19,600 euros this year and will continue to fall every six months, reaching 13,200 euros by 2030. Households earning 40,000 euros or more annually already face a lower maximum subsidy of 16,500 euros, which is also slated for reduction.