Abolition of Oil Burners and Gas Subsidies – All the Exceptions

Abolition of Oil Burners and Gas Subsidies – All the Exceptions

As of January 1st, the ban on the sale and installation of heating oil burners has come into effect, along with the cessation of subsidies for natural gas boilers, in accordance with the National Climate Law (Law 4936/22). These changes are part of the strategy for energy efficiency and the reduction of carbon emissions.

Oil Burners: Cessation with Exceptions

As of January 1st, the sale and installation of oil burners is prohibited, with strict penalties for violators, including fines and the sealing of systems. However, an extension of their use is being considered for areas without access to a natural gas network, provided they remain off-grid. The replacement of oil burners with heat pumps is expected to reduce energy consumption by 70% and heating costs by 50%.

Extensions and New Requirements

In cases where no economically viable alternatives exist, the law allows for an extension by decision of the Minister of Environment, following an impact assessment. From 2029, oil burners will operate exclusively with a mixture of heating oil and renewable liquid fuels (at least 30%).

End of Gas Boiler Subsidies

The EU, through a directive activated in May 2024, provides for the zeroing of subsidies for boilers using fossil fuels. From 2025, any financial incentive for the installation of such boilers is prohibited, while an exception is provided for hybrid heating systems that utilize Renewable Energy Sources (RES).

Shift to RES and Heat Pumps

The National Energy and Climate Plan (NECP) includes ambitious targets for the development of RES, with an emphasis on heating and cooling. Enhancing self-generation of electricity through photovoltaics with storage, as well as the installation of hybrid systems, are key pillars of this strategy.

Heat pumps, although they cost up to four times more than a gas boiler, are subsidized through programs such as “Change Heating System and Water Heater” and “Exoikonomo 2025.” The first large-scale heat pumps will be installed by 2030, with the goal of doubling their use compared to 2022.

Overall, the transition to heat pumps is estimated to reduce energy costs and contribute significantly to the goals for energy efficiency and climate neutrality.