We finally have the fully adopted provisions of the EPBD Directive. It introduces a ban on subsidies for individual gas and fuel oil boilers from January 1, 2025. More importantly, it does not completely phase out gas heating after 2030. We asked the Ministry of Environment and Environment for a comment. It answered whether it will withdraw the subsidy from the Clean Air program from January 1, 2025.
- The EPBD directive states that it should still be possible to provide financial incentives for the installation of hybrid heating systems based on fossil fuels, i.e. oil or gas, but with a significant share of energy from renewable sources, such as combining a boiler with solar thermal energy or a heat pump.
- As we read in the EPBD directive, Member States should strive to gradually phase out subsidies only for individual boilers powered by fossil fuels, i.e. natural gas and fuel oil, from January 1, 2025.
- As the Ministry of Environmental Protection replied, subsidies from the Clean Air program for fossil fuel boilers, i.e. oil and natural gas, will continue to be maintained after January 1, 2025.
Finally, the amended provisions of the EPBD directive have been published, which mainly relate to reducing energy and heat consumption in non-residential buildings. but also homes.
However, this directive indirectly regulates the principle related not only to co-financing, but also to the use of emission-based heating sources for homes, i.e. energy-saving boilers for fuel oil and natural gas.
A more in-depth analysis of the new provisions contained in the EPBD directive allows us to conclude that solid fuel boilers, especially natural gas boilers, will not be phased out as quickly as recently described in publications.
Gas boilers will not be completely phased out even after 2030. The situation is similar with subsidies for the purchase of gas boilers.
However, the EPBD clearly sets a clear trend away from heating based on fossil fuels, mainly coal but also natural gas and fuel oil.
The EPBD clearly defines the gradual phasing out of subsidies for individual boilers based on natural gas and fuel oil. But what does the phrase “individual” mean?
Subsidies for natural gas and fuel oil boilers, but only those installed in a hybrid system after 2025.
As we read in the EPBD, Member States should strive for a gradual phase-out grants to individuals boilers powered by fossil fuels.
First of all, they should stop providing financial incentives for installations from 2025 individual fossil fuel boilers, except those selected for investment before 2025 under the Recovery and Resilience Facility established by Regulation (EU) 2021/241 of the European Parliament and of the Council11 and the European Regional Development Fund and the Cohesion Fund established by Regulation Parliament European Union and of the Council (EU) 2021/105812.
This is regulated by Article 15(1). 10 of the EPBD “Financial support, skills and market barriers” (p. 93):
From 1 January 2025 at the latest, Member States shall not provide financial support for installation. stand-alone boilers powered by fossil fuels, except for boilers selected for investment before 2025.
What does this mean in practice for home owners who want to apply for financing after January 1, 2025?
From 1 January 2025, Member States shall not provide for any financial incentives for installation independent boilers powered by fossil fuels. This is the rule, but exceptions apply. If financial incentives have been chosen for investment before 2025, in accordance with the articles of the regulations on European funds (RRF, FEDER, CAP, etc.), this is still possible until the end of the multiannual financial framework in 2027. These exemptions should apply in particular in countries where coal boilers are to be replaced with natural gas boilers. This means that the Clean Air program should be covered by these exceptions until 2027, says the president of SPIUG.
As PORT PC experts note, the exception will be programs operating before this period and financed from the National Reconstruction Programs.
Hence, this change will not affect existing support programs such as the “Clean Air” program, but also under these programs it is planned to gradually phase out subsidies for stand-alone fossil fuel boilers by the end of 2025. This is a key step towards promoting alternative, more sustainable heat sources such as heat pumps – note PORT PC experts.
Subsidies and permission for hybrid heating of houses with fossil fuel boilers even after 2030.
As we read in the approved EPBD:
It should continue to be possible to provide financial incentives for the installation of hybrid heating systems with a significant share of energy from renewable sources, such as combining a boiler with solar thermal energy or a heat pump.
What is hybrid home heating? By combining heating based, for example, on heat pumps with gas or fuel oil boilers. Subsidies will not disappear either, but we will no longer be able to obtain funding for the purchase of a natural gas or fuel oil boiler.
By the end of this year, the European Commission is expected to present a clear and detailed definition of fossil fuel boilers define criteria for hybrid heating systems. They will be included in hybrid heat pumps with an additional peak source, for example, a fossil fuel boiler, treated as a single set of devices in the context of energy labeling and ecodesign requirements. In many European Union countries, requirements have already been introduced for the minimum share of energy from renewable sources (RES) at the level of 60-65%, which can also be defined by establishing the minimum energy efficiency of the entire set of devices – emphasize PORT PC experts.
As specified in the EPBD:
It should still be possible to provide incentives financial in the case of installation of hybrid systems significant heating the share of energy from renewable sources, such as combining a boiler with solar thermal energy or a heat pump.
As the EPBD states, national policies and phase-out measures should be supported by a clear legal basis on the prohibition of certain heat sources based on their greenhouse gas emissions, the type of fuel used or the minimum share of renewable energy used for heating at building level.
Will subsidies for oil and natural gas boilers be eliminated from 2025?
As the Ministry of Environmental Protection replied, subsidies after January 1, 2025 for fossil fuel boilers, i.e. oil and natural gas, financed by Clean Air, which is financed under the Recovery and Resilience Instrument established by regulation of the European Parliament and of the Council (EU) will continue to be maintained. 2021/241 and the European Regional Development Fund and the Cohesion Fund established by Regulation (EU) 2021/1058 of the European Parliament and of the Council.
According to the updated information on the content of the EPBD adopted by the EP, Member States should cease from 2025 to provide financial incentives for the installation of individual fossil fuel boilers, with the exception of those selected for investment before 2025 under the Recovery and Recovery Instrument. Increasing Resilience established by Regulation (EU) 2021/241 of the European Parliament and of the Council and the European Regional Development Fund and the Cohesion Fund established by Regulation (EU) 2021/1058 of the European Parliament and of the Council – emphasize experts from the Ministry of Culture and National Heritage – The “Clean Air” priority program is financed both from KPO funds and the Cohesion Fund. The final date for withdrawing support for gas boilers will be determined after the publication of the EPBD in the Journal of Laws of the EU and obtaining an interpretation regarding the application of the above-mentioned exception, as well as determining the conditions for the transposition of the EPBD into the Polish legal order.
Subsidies from the Clean Air program for individual natural gas and fuel oil boilers will not be eliminated from January 1, 2025, as this is permitted by the EPBD directive.
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