Incentives for greater use of heat pumps
Two of the three main heating fuels (oil and natural gas) are expected to debut at significantly reduced prices this winter compared to last, while a small increase will be seen by households and businesses that use electricity to stay warm, based on the current picture of the energy market.
However, it is likely that users of electric devices for heating will end up being the winners this year, as the government is mulling an increased subsidy scenario in relation to heating oil and natural gas.
The aim is for consumers to switch to cleaner forms of energy, and in this context, in addition to the increased heating allowance, the Environment and Energy Ministry is preparing a subsidy program for heat pumps.
The program, which is expected to begin this fall, will subsidize 50%-60% of the cost of purchasing and installing a heat pump in stages, introducing degree-day criteria similar to those that apply to heating subsidies.
Participation in the program will be horizontal, meaning that it will be addressed to all households, regardless of income, since the goal is the rapid replacement of fossil fuels (oil and natural gas) used for heating.
The ban on the sale of new oil burners from 2025 and the ban on granting incentives for new gas boilers after 2025 will contribute to this goal.
The aim is to increase the percentage of households that have installed heat pumps from 7% today to 17% by 2030 and 91% by 2050.
As far as prices are concerned, the winter season, based on today’s data, will start with lower prices compared to last year for both heating oil and natural gas.
The price of heating oil based on today’s prices is 1.10 euros/liter, which is 18% lower than last year’s starting price (on October 15) of €1.35/liter.
Accordingly, the price of natural gas at the start of the winter season this year is €0.07 per kilowatt-hour, 13% lower than last year’s starting price of €0.08/kWh.
Natural gas is the most economical heating fuel for this year, as the price of electricity is €0.265/kWh in September this year and is up by 4% compared to last September’s price of €0.255/kWh.
