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Market analysis··2 min read

Heating startup responds to KfW funding cut

A specialised trading company for heating systems is compensating for the recent cuts in state KfW funding for heating system replacement.

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Heating startup responds to KfW funding cut. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The recent cuts in state funding rates for heating system replacement by the KfW have caused uncertainty among property owners and in the trade sector. This development carries the risk of slowing down the progress of the heat transition in existing buildings. Owners are confronted with unexpected additional costs, while the trade sector fears order cancellations.

In response to this situation, the North German startup Nordwærme has announced it will provide a funding discount from its own resources to secure a transitional phase until the end of August. The company aims to avoid an investment backlog and continue to promote the switch to efficient heat pumps. The measure is intended to partially restore the original funding conditions for builders.

Sönke Löser, Managing Director of Nordwærme Fußbodenheizungen, stated that many families had firmly budgeted with KfW funding, and a sudden change in framework conditions would jeopardise much-needed projects. He emphasised that such an approach significantly unsettles builders. With this funding discount, the company is sending a signal of reliability that should be independent of the state's budgetary situation.

Nordwærme special fund for compensation

Nordwærme is compensating for the reduction in the maximum eligible amount from 30,000 to 28,000 EUR, corresponding to a 6.67 percent cut, from company-owned sources. This discount will be applied to the company's services until the end of August. The funding application is made via a straightforward email process. Analogous to KfW regulations, the funding application must be submitted before the order is placed, with the discount shown directly on the final invoice.

Nordwærme's service offering focuses on retrofitting underfloor heating in existing buildings to support heat pump projects. Particularly in older buildings, underfloor heating is often necessary to ensure the efficiency of a heat pump in accordance with KfW funding criteria. Underfloor heating contributes to lowering the flow temperature and thereby improves the annual performance factor of the heat pump. Retrofitting a Nordwærme underfloor heating system can therefore often be funded at the same rates as part of the heat pump subsidy.

The milling process used by Nordwærme enables fast and clean installation within a few days, without the need for complete removal of the screed. Mr Löser encouraged property owners not to postpone investment decisions due to short-term political changes in direction. He expressed hope that this initiative might help facilitate new heat pump installations, benefiting customers, the trade sector, and climate protection.

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