New Funding Framework for Heating Replacement Welcomed by Pellet Industry
On October 3, 2025, the professional association proPellets Austria expressed strong support for the newly introduced funding framework for heating replacements, announced by the Minister of Agriculture and state councilor. This initiative is seen as a crucial step towards enhancing climate protection and stimulating economic growth in Austria.
The new funding program guarantees an annual budget of 360 million euros for heating replacements and renovations, with a fixed duration extending until 2030. This initiative aims to eliminate the previous inconsistent funding policies, providing households, industries, and the economy with much-needed stability and predictability, ultimately fostering new investments.
Households transitioning from oil or gas heating to modern pellet heating systems can receive a subsidy of 8,500 euros, supplemented by potential regional funding. Importantly, households can begin planning their new heating systems immediately and will be able to apply for funding starting in mid-November. Additionally, urgent heating-related investments already made can be submitted for retroactive funding.
Transitioning from oil to pellet heating has proven beneficial, having saved hundreds of thousands of tons of CO2 emissions and generated approximately two billion euros in regional economic value in recent years. The abrupt cessation of funding in 2024 had caused uncertainty among households and posed significant challenges for industries and businesses. The reinstatement of reliable funding conditions is crucial for resuming planning and investment activities.
ProPellets Austria emphasizes that funding for sustainable heating transitions is an investment in Austria's economic resilience. Optimal conditions for key sectors, particularly wood and heating technology, will safeguard thousands of jobs and ensure the strength of the local economy.
The success of the heating replacement initiative from 2021 to 2024 is evidenced by notable statistics: 382,000 tons of CO2 equivalent emissions were saved, generating 1.9 billion euros in revenue from heating investments and securing over 65,000 jobs across various sectors. The economic benefits extend further, with an estimated 55,000 euros in taxes and levies collected for each installed pellet heating system over its lifespan.
Moreover, the stored wood pellets in households provide a power equivalent to that of all seven Austrian pumped-storage power plants, while households switching from oil to pellets can save up to 2,000 euros in heating costs each season.
As the country navigates uncertain economic times, the heating replacement initiative presents a significant opportunity for growth and job creation through enhanced climate protection.
For further inquiries, please contact proPellets Austria.