Heat pump: Price cap should ensure cheaper heating

The German government wants to create incentives for the installation of heat pumps. This is to be the basis of the energy turnaround. However, in order for citizens to opt for a heating system based on heat pump technology, they want to cap electricity costs. After all, heating systems rely 100 percent on electricity.

Attractiveness of heat pump is to rise

The outcry was large, when a few days ago a draft bill from the Federal Ministry of Economics leaked to the public. The paper, drafted jointly with the Federal Ministry of Building, envisaged that from 2024 onwards, only the new installation of heating systems that rely on renewable energies to a minimum of 60 percent would be approved. In public, Federal Minister of Economics Robert Habeck (Greens) met with his plan, which is still in the drafting phase, only partially on open ears. After all, people who are due to replace their heating systems in the near future are particularly fearful of high costs. Conversely, owners of a heat pump have not really benefited from the modernity and potential environmental friendliness of their system in recent months.

While the prices for gas were capped and thus a cost explosion with gas heaters was clearly defused, the electricity price climbed unhindered on new record height. Even the electricity price brake did not really change much. Consequently, even heat pump operators are currently paying significantly more for heating their own four walls. Of course, this is anything but conducive to the attractiveness of the heating system. Accordingly, adjustments are now to be made to the price of electricity. The electricity price is to be capped at 28 cents per kilowatt hour for households with a heat pump or other electricity-based heating systems. This applies at least to the part of the consumption that falls on the heating system. Corresponding plans could be read last week in a revised government bill.

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Heat pump should not lead to cost explosion

From the updated draft law also emerge tangible figures. For example, not all owners of heat pumps are to benefit from the price brake. Rather, it depends on which tariff one is in. Most importantly the innovation might be for persons, who use a special heat pump tariff and for their equipment an own counter possess. Here the electricity price is to be capped at a flat rate of 28 cents per kilowatt hour. But even with only one meter, the brake is likely to make itself felt. The prerequisite for this is that one uses a high and low tariff. Here, the electricity supplier charges a higher price per kilowatt hour during the day than at night. Here, too, the price is to be capped at 28 cents – at least at night.

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At high tariff times, the limit should again be 40 cents. Since at present many people are waiting for the installation of a heat pump for fear of skyrocketing gas prices, these of course also raise the question of the possible costs. Here the power suppliers are to make a consumption prognosis. On basis of this then an appropriate calculation takes place. The brake itself is not to apply permanently. The law states that it is to apply until April 2024. With the adjustment the cabinet should ensure that owners of a heat pump do not feel abandoned. Since the traffic light government attributes a large role to the heat pump technology in the context of the energy turnaround, everything else would also be fatal. The adjustments to the new regulations are then to be carried out by the local electricity supplier.