Commission Provides Guidance on Phasing Out Funding for Stand-Alone Fossil Fuel Boilers by 2025

The European Commission released the first in a series of guidance documents to help EU countries implement the updated Directive on the Energy Performance of Buildings. This guidance (C/2024/7161) clarifies that, by January 1, 2025, all financial incentives for installing new stand-alone fossil fuel boilers must end. It defines key terms such as ‘stand-alone boiler powered by fossil fuels,’ ‘hybrid heating system,’ and ‘financial incentives,’ explaining that no grants, tax reductions, or other incentives can be provided for the installation of boilers running on fossil fuels, whether part of a renovation or a new installation. National, regional, and local bodies are prohibited from offering financial support for these installations.

However, incentives for hybrid systems that incorporate a significant share of renewable energy are still allowed, provided that the support is proportional to the renewable component. Additionally, funding under previously approved EU programs, support for transitioning to renewable gases in existing boilers, and grants for the maintenance, repair, or decommissioning of fossil fuel boilers remain permitted.