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June 17: New funding strategy for energy efficiency and renewable heating published

June 2017

Germany’s Federal Ministry for Economic Affairs and Energy has published a new strategy for federal funding and incentives for energy efficiency and renewable heating. The document lays down a number of modifications such as the bundling of major programs and a new user-focussed approach. The various programs will be reformed by 2020.

Hybrid heating systems that use renewable energy sources will continue to be funded to support the transition to renewables in the heating sector. However, support for systems based solely on fossil fuels will be phased out by 2019.

The strategy also defines a number of core areas, namely energy consulting, energy efficiency in buildings, energy efficiency in industry and trades, and heating infrastructure. All of the programs will be provided as combinable modules in each of the four areas. As a consequence, a number of existing programs will be merged. For example, the two large programs in the building sector (KfW energy efficient construction and renovation and the MAP renewable heating program) are to be fused under “energy efficient building”, according to the document.

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