Austria to Lower Heating Subsidy Rates in 2027

Environment Minister Norbert Totschnig announced that heating subsidy rates will drop to 20 percent for new applications from November.

announced in on October 15, 2026, that the maximum subsidy rate for heating system replacements will drop from 30 to 20 percent. The new criteria apply to all applications submitted starting November 2, 2026.

The 2027 renovation offensive offers lump-sum contributions of 4,000 euros for district heating, 5,000 euros for heat pumps, and 6,000 euros for biomass boilers. To simplify the system, application, approval, and billing are bundled into a single process.

A total of 500 million euros is available for the 2027 offensive starting January 4. These subsidies are financed by 20 million euros in unused funds from 2026. climate spokesperson Viktoria Auer noted the shift as the new funding cycle begins soon.


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