Germany’s heating debacle takes on even greater dimensions
The Federal Ministry of Economics, headed by Robert Habeck (Green party) has “GROSSLY MISCALCULATED” the cost of removing oil and gas heating systems from homes and buildings, and installing heat pumps in their place by 2045.
Germany’s heat pump cost estimate is spiraling out of sight!
Instead of 132 billion euros cost by 2045 for citizens, the real price tag will be a whopping 621 billion euros!
The total real price tag for all buildings will be 776 billion euros.
“According to calculations by the property owners’ association Haus & Grund, Minister Habeck and his ministry have miscalculated by several hundred billion euros,” reports the German online Pleiteticker.de here.
Habeck’s Federal Ministry of Economics estimated the costs for homeowners at around 135 billion euros by 2045, however “citizens will have to pay many times the calculated costs.”
The president of Germany’s property owners’ association, Kai Warnecke, told Bild newspaper, “The target is 500 000 new heat pumps a year, at an average cost of 40,000 euros per heat pump.” But the real number would have to be 1.5 million heat pumps each year if Germany wishes to reach its stated 2045 target.
Another huge mistake made by Habeck’s Ministry is forgetting that heat pumps have a lifetime of only 20 years, so already by 2045 the pumps will need to begin being replaced. Habeck pledges to support citizens in replacing their oil and gas heating systems, but provides no details on the plan.
Kai Warnecke warns of the huge costs in the pipeline for Germans: “If we assume that about 80 per cent of the buildings are in the hands of the citizens, they will have to pay about 620.8 billion euros of the total 776 billion euros.”
Already critics are calling the proposed bill incoherent and the feasibility of the project to be non-existent. Many homeowners are already struggling financially from high electricity prices and inflation.
More than 1 trillion euros for a statistically insignificant climate benefit
And when the costs of extensive home renovation get added in, the total price tag soars to well over a trillion euros. Yet, the impact on the globe’s temperature from Germany’s planned contribution will be statistically insignificant.
” … 40,000 euros per heat pump …”
Can this cost be checked in the current market in Germany?
“In almost all cases, the conversion goes hand in hand with structural changes and often with a more energy-efficient renovation of the entire building,” Thomas Auer, a professor of building technology and climate-friendly construction at the Technical University of Munich, told DW.
The necessary investments can quickly run into the tens of thousands of euros. The state covers up to 35% of the installation costs in old buildings, and 45% if an oil burner is replaced. Most of the costs for a professional energy check are also reimbursed.”
If prices double by 2035 and again by 2045 the 1 trillion euros cost estimate may be too low.
Wealth redistribution from less well-off to middle-and-upper-income groups?
Which country in Europe is the most impoverished? I think Germany is trying to take that title from it.
[…] From the NoTricksZone […]
A government does not have any money of its own. If it supports this project it means that taxes for everyone will rise. Citizens will pay for it one way or another.
[…] From the NoTricksZone […]
[…] From the NoTricksZone […]
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I believe the enviro-kooks in the U.S. are kookier than the German kooks. Let’s hope there are more smart voters than stupid voters in future elections or we’ll be living like the Amish without the horses before 2035.
But in the US we have the “yeah, yeah, yeah” effect, wherein with repeated alarms and no catastrophe we begin to ignore the alarms.
Awesome post