Austrian Industry Demands Increased Subsidy Budget for Transition to Renewable Heating

Heating manufacturers and the wood and pellet industry in Austria are urging the government to boost funding for replacing fossil heating systems with environmentally friendly alternatives. They are requesting an annual budget of 500 million euros for 2026/27 to support the transition, up from the planned 360 million euros. Last year saw a 20-35% decline in renewable heating sales while fossil heating boiler sales rose by 10%. Currently, around 1.2 million households in Austria rely on natural gas or oil for heating.

Published Mar 24, 2026

Industry representatives in Austria are demanding the government increase the subsidy budget for transitioning from oil and gas heating systems to renewable options like heat pumps and biomass boilers. They propose raising the budget for 2026/27 to 500 million euros annually, up from 360 million euros, to facilitate the replacement of at least 60,000 fossil heating systems each year.

AI-curated by Theia

Recent figures show a 20-35% drop in sales for renewable technologies, while fossil boiler sales increased by 10%. Currently, 1.2 million Austrian households utilize natural gas or oil for heating, resulting in significant financial outflows for energy imports. The industry suggests that higher subsidies would ultimately be beneficial, as tax revenues from system production and installation would exceed subsidy costs.