Uncertainty about the new Building Energy Act and the framework conditions for grants resulted in skyrocketing numbers of applications for grants for wood burning stoves in Germany in the summer of 2022, before they dwindled almost completely this year
The influence of incentives granted via the Federal Grant Program for Efficient Buildings (BEG) could not be more obvious. In 2021, the Federal Office of Economic Affairs and Export Control (BAFA) reported an average of 6,474 applications for grants for wood burning stoves per month. Last year, that figure has almost doubled to 11,900 applications. There are several reasons for the 83% increase. In spring 2022, there were rumours that the German government was planning to ban wood burning stoves in new buildings. As a result, applications soared to 13,430 in March.
“Only 3 to 5% of new buildings have pellet heating systems. 95% of the pellet boilers with under 100 kW are installed as replacement for oil boilers in existing buildings,” Beate Schmidt-Menig, Managing Director of Ökofen Heiztechnik in Germany explains to handelsblatt.de.
The idea of banning wood burning heating systems in new buildings was scrapped but from June, it was clear that the grants for wood burning stoves will be reduced from a maximum of 55% to 10%, or to 20% when they replace an oil heating system. As a result, the number of applications literally exploded and totaled 56,223 in August alone. That is an increase of 50,000 applications compared to the same period of last year (August 2021: 5,150). According to the German Wood Fuel and Pellets Association (DEPV), these applications are and were only partially implemented. Nevertheless, they filled the order books of furnace and boiler manufacturers until the first half of 2023.
Hesitation when it comes to applications for grants as part of the Building Energy Act affects all renewable energy technologies, but wood burning stoves are affected the most; yellow: solar energy, green: wood, orange: heat pumps; dotted black line: monthly average 2022, straight black line: monthly average 2023
This year, however, the number of applications is less than 500 per month in the first seven months, at an average of 382. “Boiler manufacturers in Germany hardly receive any new orders anymore, not even from homeowners who don’t apply for grants,” the DEPV explains. The planned Building Energy Act (GEG) is to be passed by the Bundestag in September and, together with a possible increase in grants in 2024, causes great uncertainty and wait-and-see type behavior among the population. From the point of view of the German government, all heating should be powered by 65% of renewable energies from 2024. Pellet heating systems are permitted in new buildings, but only in combination with another renewable energy technology, such as heat pumps or photovoltaic systems.
Boiler manufacturers, especially in Austria, have already had to lay off staff and apply for short-time work. According to DEPV, manufacturers are expecting a 60 to 80% drop in orders in Germany for the full year. According to Martin Bentele, Managing Director of the DEPV, “the market slump will continue for another year”.
Uncertainty about the GEG has also led to a decrease in applications for grants for heat pumps and photovoltaic systems. According to the BAFA, 48,804 applications for heat pumps were recorded in the first half-year. In August last year alone, applications had totaled 148,000, as merkur.de reports.
