New gas boilers in Germany more expensive than heat pumps in the long run – report

The cost of buying and running a new gas boiler in Germany is predicted to be twice as high as a heat pump over a 20-year period, according to a report by non-profit consultancy co2online. The energy and investment costs are estimated to reach around 78,800 euros for a new gas boiler, compared to 37,550 euros for a new heat pump, co2online calculated. "Many homeowners put off switching to renewable heating systems and underestimate the future financial burden," co2online said.

The cost difference in large part is due to the rising CO2 price, which makes burning fossil fuels more expensive year-on-year to incentivise the move to cleaner alternatives. The cost of fossil fuels is also set to increase in the next couple of decades, and gas network charges are set to rise too as more people shift away from fossil fuels for heating and the charges then fall on a declining number of consumers.

"Energy costs in particular, rather than investment costs, determine the cost-effectiveness of a new heating system," co2online said in a press release. The consultancy's calculations included state subsidies for climate-friendly heating systems.

Climate-friendly heating technologies may now be predominant in new builds in Germany, but the country’s existing buildings continue to rely on fossil fuels, showed a report by the German Energy Agency (dena). A comparatively low electricity price relative to gas could be an important lever for accelerating the uptake of heat pumps throughout Germany and Europe, according to a report by the state-owned bank KfW.