In cities, municipalities and parts of the economy, concern is growing that not enough customers will choose newly built district‑heating networks, leaving suppliers stranded on their investment costs. The Association of Municipal Companies (VKU) therefore proposes to stop financial support for heat pumps in the affected areas. “Dual funding of district‑heating networks and heat pumps is not a good idea” said VKU chief executive Ingbert Liebing. “Once an expansion area is decided, subsidies for heat pumps should be withdrawn”.
Together with other associations, the VKU is calling for changes to the Building Energy Act (GEG) and heating subsidies. A concept paper co‑authored by the German Federation of Housing and Real Estate Companies (GdW), the Federation of the German Construction Industry (HDB) and the VKU says that the disadvantage of pipe‑connected networks compared with building‑specific heating solutions must be eliminated. A reformed GEG should also discard the focus on building efficiency.
The German City Association likewise fears high costs and insufficient revenue. CEO Christian Schuchardt told the “Welt am Sonntag” that when cities earmark areas for new or expanded heating networks, owners are not obliged to use the infrastructure. “This creates uncertainties for suppliers who face multi‑billion‑Euro investments” he added. “It cannot work that cities and suppliers finance the projects and then citizens opt for their own heat pumps”.
Cities with more than 100,000 inhabitants must submit a completed plan for new district‑heating networks by the end of June this year. The German City Association estimates that expansion costs will reach over €43 billion by 2030.
