Swiss Parliament Reduces Planned Heating Subsidies
- brg_news_room
- Aug 11
- 1 min read
Switzerland: In 2023, Swiss voters approved a plan to allocate CHF 200 million (USD 227 million/EUR 195.4 million) annually for ten years, starting January 2025, to support the replacement of oil and electric heating systems with cleaner alternatives such as electric heat pumps. In December 2024, the federal Swiss parliament voted to reduce the 2025 subsidy budget by 25%, citing fiscal constraints. The Federal Council maintained that replacing high-emission heating systems remains a priority, but some parliamentarians argued the cuts contradict this goal.
High installation costs remain a key barrier to heat pump adoption in Switzerland. A ground-source heat pump can cost around CHF 50,000 (USD 56,800/EUR 48900) in Switzerland compared to CHF 17,000 (USD 19,300/EUR 16600) in Sweden, with factors such as limited market competition and high equipment prices contributing to the difference. Maintenance expenses and high electricity prices further limit economic viability. Critics warn that applying subsidies without addressing structural market inefficiencies could inflate prices, reducing their effectiveness. Similar concerns exist in the solar panel sector, where installation costs could be 30%–50% lower in a more competitive market.
Source: Gazeta Express
