Is gas heating still worthwhile now?

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A recently presented draft law by the federal government is causing concerns among many consumers: From next year, 65 percent of every new installed heating system should be powered by renewable energy. This means that a pure gas or oil heating system can no longer be easily reinstalled. In most cases, it will result in a heat pump. But many people are wondering whether switching to a heat pump is financially worthwhile.

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Although gas heating is cheaper to buy than a heat pump, consumers should consider long-term heating costs. An example calculation by the Federal Association of Consumer Organizations shows that in this case, a heat pump could be cheaper than gas heating after 18 years.

The calculation takes into account government subsidies for heat pumps and energy costs for gas and electricity. A household with an annual consumption of 25,000 kilowatt hours would pay annual heating costs of 3,100 euros for a gas heating system, while a heat pump would only incur 2,200 euros per year.

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One of the reasons for the long-term cost advantage of a heat pump is the increasing CO2 emissions for heating with gas or oil. From 2027, there should be a second European emissions trading system (ETS2), which also prices CO2 emissions in the building sector. In subsequent years, operating costs for gas and oil heating systems could continue to rise.

It is important to note that this invoice is only an example and the actual costs may vary depending on individual factors. These include the insulation standard of the house, energy consumption and the specific offer for heating replacement. Maintenance and repair costs are also not included in the example.

The federal government is also planning billions of dollars in funding to cushion social hardship in heating exchanges. We already talked about the details of this funding in our previous blog.

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In summary, a heat pump will be the cheaper option in the long term, particularly due to the rising costs of heating with gas or oil. However, consumers should review their individual circumstances and funding options to make the best decision to replace their heating system.

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Feel free to use the Autarc heat pump checkto have your situation and heat pump suitability assessed and to plan the next steps.

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Image rights: dpa/Hauke-Christian Dittrich