EU: Commission issues guidance on phasing out financing for stand-alone fossil fuel boilers from 2025

The European Commission has today issued the first of a series of guidance documents to support EU countries in transposing and implementing the revised Directive on the Energy Performance of Buildings into national law. Today’s guidance (C/2024/7161) clarifies the requirement under Article 17 (15) to discontinue, at the latest from 1 January 2025, any financial incentive for the installation of new stand-alone boilers powered by fossil fuels. In particular, the document clarifies the notions of ‘stand-alone boiler powered by fossil fuels’ and of ‘hybrid heating system’, as well as ‘installation’ and ‘financial incentives’. As an example, no grants, preferential loans or fiscal incentives, such as reduced tax rates, can be provided for the purchase, assembly and putting into operation of new stand-alone boilers powered by natural gas, oil or coal, regardless of whether the installation is part of a renovation project or not. No public body at national, regional or local level shall provide economic support and/or support through public resources to buyers, installers and third parties for the installation of such boilers.

The guidance also outlines forms of incentives that can continue. For example, hybrid heating systems which combine a boiler with a heat generator using renewable energy can be incentivised only if the share of renewable energy is considerable; and the incentive provided should be proportionate to the renewable share. In addition, any incentive already approved under EU funds, financing of the additional costs related to the transition to the use of renewable gases in a boiler, support for the maintenance, repair or decommissioning of fossil fuel boilers or income support for heating with fossil fuels can be maintained. Likewise, incentives which have already been granted at national, regional and/or local level and communicated to an individual beneficiary may still be disbursed.