Government lowers heating replacement subsidy rate and streamlines application process

Under the "Sanierungsoffensive 2027", the government reduced the ceiling of financial support for heating system replacements, citing the need to serve more applicants amid strong interest. Environment Minister Norbert Totschnig explained that the adjustment reflects lessons learned from earlier phases. Fixed subsidies will be provided: €4,000 for connecting to district or local heating, €5,000 for installing a heat pump, and €6,000 for a biomass boiler.

These terms apply to requests submitted from 2 November and are financed from unspent resources of the 2026 renovation initiative. The new scheme also consolidates registration, approval and final accounting into a single procedure to ensure all allocated funds are utilized. Overall, the program totals €500 million, split between the Environment and Economic ministries, with a focus on reducing CO₂ emissions and supporting domestic construction jobs.