New subsidies for heat pumps approved
Starting in 2024, Austria has a new subsidy framework for heating system replacements and thermal retrofits. We explain what is eligible for subsidies, how the program works, and what changes are coming regarding heat pumps.
The future of heating technology clearly lies in efficiency and sustainability—which is why heat pumps are of great importance for the heating transition. In 2022, for the first time, more renewable heating systems were installed in Austria than fossil fuel-based ones—reason enough for the government to provide the necessary impetus.
Despite the government’s announcement, the mandatory phase-out of gas and oil heating systems by 2040 will not happen after all. The ÖVP and the Greens had been wrangling over the Renewable Heat Act (EWG) for a good two years; now the motto is: incentives instead of bans. Instead of dictating to homeowners when and how they must heat their homes, the transition in the heating market is to be achieved through generous subsidies starting January 1, 2024. And this also applies to heat pumps.
The key points
- When replacing a heating system, federal and state subsidies cover up to 75 percent of the costs for a new system. This applies to single-family and two-family homes as well as multi-story residential buildings. The general rule of thumb is: the higher the investment costs for a climate-friendly heating system, the higher the subsidy. Example: A geothermal heat pump is more expensive than a district heating connection
- The subsidy amount for air-to-water heat pumps is 75% of the total cost, up to a maximum of €16,000. If the units are operated with climate-damaging refrigerants, the subsidy rate is significantly reduced.
- Subsidies are available not only for the equipment itself but also for the removal and disposal of old systems and their integration into the heating system.
- The permissible flow temperature for heat pumps is being increased from 40°C to 55°C—a long-standing demand of the industry.
Other new features:
- Starting in January, oil and gas heating systems will be banned in new buildings.
- The “Clean Heating for All” subsidy program will be significantly expanded. Low-income households will receive 100% funding.
- The federal government’s flat-rate subsidies for thermal building retrofitswill be tripled.
For more details on all changes regarding the EWG, please refer to this PDF:
