Gas and oil heating systems are frowned upon, and the federal government is also critical of heating with wood.

According to the plans of Economics Minister Robert Habeck (Greens), heating in Germany is to be primarily carried out with electricity-driven heat pumps in the future.

But they are expensive.

An air heat pump quickly costs 20,000 euros with installation, more than twice as much as a new gas heating system.

And while at least the running costs are comparatively low in well-insulated new buildings, residents of older buildings have to be prepared for high electricity bills.

The market also shows this: Of the 463,000 heaters that were installed in Germany in the first half of 2022, 300,000 were still operated with gas.

This number is compared to only 96,000 heat pumps.

Julia Loehr

Business correspondent in Berlin.

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To ensure that the heat pump offensive does not run out of steam, Habeck announced on Wednesday after a meeting with industry representatives - the second within five months - that financial relief for heat pump buyers would be granted.

"In the electricity price brake, we will create a special consideration for the heat pumps that will be installed from 2022," he said.

Background: From the beginning of 2023, both electricity and gas prices are to be capped by the state, for 80 percent of historical consumption.

But if you buy a heat pump in 2023, your power consumption will be significantly higher than before.

At the same time, heating with gas will become cheaper thanks to the gas price brake.

The change from gas to electricity should not be punished, said Habeck.

The draft law on the gas and electricity price brake is not yet ready.

Among other things, it is still unclear from when the gas price brake should apply - whether only from March, as early as February or, like the electricity price brake, from January.

Energy suppliers and public utilities warn that payments before March are technically hardly feasible.

They also question the start of the electricity price brake in January.

Consumers may receive the benefit in March retrospectively for the months before.

The bill was originally due to be approved by the cabinet on Friday.

Now Habeck spoke of the fact that this should happen in the circulation process “in the days after”.

"Fossil energies will become more expensive," he emphasized, referring to the CO2 price, which is gradually making gas and oil more expensive.

At the same time, the electricity prices are expected to fall as a result of the expansion of wind and solar energy.

Habeck also referred to the subsidies for the purchase of a heat pump.

"In the end, the economic calculations don't turn out so badly." The head of the heat pump association, Martin Sabel, said that a new heating system lasts 15 to 20 years.

The long-term perspective definitely speaks for this type of heating.

Opportunities for new heaters are narrowing

There are 40.6 million apartments in Germany.

About half is heated with gas, a quarter with oil.

According to Habeck, there are currently around one million heat pumps.

By 2030, the number is expected to rise to 6 million.

This is to be achieved not only with subsidies, but also with stricter legal requirements: From January 2024, newly installed heating systems are to run on 65 percent renewable energy, with a few exceptions.

Then the possibilities narrow to heat pumps, pellet heating or green district heating where municipalities offer this.

The condition of the building, individual heat requirements, the time the contract was signed – who pays how much for heating depends on numerous factors.

According to calculations by the comparison portal Check 24, a family in a terraced house with a gas consumption of 20,000 kilowatt hours per year currently pays an average of 3200 euros for gas.

With 2000 liters of heating oil, the costs add up to 3230 euros.

The market observers do not have a price index for the whole of Germany for heating electricity for heat pumps.

Using the example of Frankfurt, the price calculator with 6000 kilowatt hours currently comes up with heating costs of 4000 euros.

Habeck and the industry representatives are also looking for ways to increase the production of heat pumps in Germany.

Habeck said that subsidies are being discussed at European level.

In the direction of Finance Minister Christian Lindner (FDP), he added: "At this time it would make sense to use the super write-offs that we agreed in the coalition agreement."