On 17 October, the European Commission issued guidance on phasing out financing for stand-alone fossil fuel boilers from 2025. Commission’s guidance notices are non-legislative (hence non-binding) documents intended to clarify the content of EU legislation and help a correct transposition and implementation at national level.
The phase out of financial incentives is a legal requirement set in the revised EPBD (art. 17.15): “From 1 January 2025, Members States shall not provide any financial incentives for the installation of stand-alone boilers powered by fossil fuels”.
The key aspects for the solar thermal sector are the following:
- The requirement refers to stand-alone boilers, not the combination of gas boilers and solar thermal. In fact, the EPBD and the guidance both clearly state that stand-alone boilers must be distinguished from “hybrid heating systems with a considerable share of renewable energy, such as the combination of a boiler with solar thermal […]”.
- Crucially for ST, “a hybrid heating system may be manufactured as such, or the hybridisation may take place at the time of installation or added on afterwards as on-site hybridisation”.
- The definition of what constitutes a ‘considerable share of renewable energy’ is up to the Member States; however, they must ensure that this aligns with the spirit of the provision, which is to phase-out incentives for stand-alone boilers and avoid lock-in effects. Proper advocacy will be needed at national level to ensure that ST hybrids are covered in the criteria identified.
- For hybrid systems, financing is allowed but should only cover the parts linked to the renewable generator or be proportionate to the share of renewables used in the system when this is factory-made.
Other relevant aspects include:
- Whether a gas boiler is considered to be ‘powered by fossil fuels’ depends on the fuel mix in the gas grid at the time when the boiler is installed.
- The provision does not cover the disbursement of incentives granted and communicated to the beneficiary before 1 January 2025.
- Moreover, the obligation exempts financial incentives selected before 2025 that are funded by some specific funding programmes listed in the EPBD and the guidance (e.g. the Recovery and Resilience Facility or the European Regional Development Fund).
Solar Heat Europe will follow up with its members soon to organise a meeting of the Buildings WG to discuss the topic, in particular the issue of the definition of ‘considerable share of RES’. In the meanwhile, we are available for any further information or clarification our members may need.
About Solar Heat Europe/ESTIF:
Solar Heat Europe/ESTIF’s mission is to promote solar heat as a key technology for the decarbonisation of heating and cooling in Europe and to realise the high potential of solar heat in the energy transition. With members in more than 15 European countries, Solar Heat Europe members cover different parts of the value chain, being based in countries as diverse as Finland or Cyprus.
Contact:
| Valérie Séjourné Managing Director valerie.sejourne@solarheateurope.eu Tel: +32 471 34 19 24 | Anna Ledro Communications and Events Officer anna.ledro@solarheateurope.eu Tel: +32 2 318 40 59 |