Buying and financing a heat pump in Czechia

A heat pump is a modern system that provides environmentally friendly and cost-effective heating, heats water and cools buildings during the summer months. Depending on its output, purchasing one without subsidies costs approximately 220 000 to 350 000 Kč, including VAT and installation. Property owners can get help financing it from a range of attractive subsidy schemes and, currently, promotional discounts.

Boiler replacement subsidy for low-income households

Since the summer of 2023, the individual regions of the Czech Republic and the City of Prague have launched the Boiler Replacement Subsidy programme, which is intended for low-income households. The subsidy makes it easier to replace an existing manually fed solid-fuel boiler in emissions class 3 or higher. The aim is to help low-income households replace these boilers with an environmentally friendly heating source, such as a heat pump.

To receive funding through the boiler replacement subsidy, applicants must meet several conditions. Only an individual who owns or co-owns a family house, a residential unit in an apartment building, or a recreational property used as a permanent residence may apply for and receive the subsidy.

For the purposes of this subsidy programme, low-income households include those in which the applicant and all household members receive an old-age pension or a third-degree disability pension on the date the application is submitted. They also include households in which the applicant or a household member received a housing allowance at some point between 1 January 2022 and the date the application is submitted; the allowance need not have been received throughout that entire period.

To receive the subsidy, applicants must submit an application form, proof that the original heating source has undergone a technical condition and operation inspection, and proof of ownership of the property where the new heating source is or will be installed. They must also provide photographs of the existing boiler connected to the heating system and chimney.

“Our heat pumps are among the environmentally friendly heat sources eligible for subsidies covering up to 95 % of eligible costs, up to a maximum of 180 000 Kč,” says Pavel Matějovič, Chief Operating Officer at Schlieger. “We help customers choose the heat pump that best suits their needs, as well as prepare the necessary documents and photographs and submit their subsidy application.” Schlieger has been on the market for 13 years and has completed more than 15 000 renewable energy installations during that time. Its experienced subsidy team helps customers with applications under the Boiler Replacement Subsidy and New Green Savings programmes.

The boiler replacement subsidy can amount to 180 000 to 187 500 Kč, depending on the region, covering up to 95 % of the cost of purchasing a heat pump. The South Bohemian Region was the first to announce the conditions (online applications opened on 26 June 2023), while the Zlín Region was the last, opening its programme on 12 September 2023. The subsidy scheme will run until 31 August 2024.

New Green Savings

If you do not meet the low-income household criteria and are not eligible for the boiler replacement subsidy, the New Green Savings programme can help you purchase a heat pump, covering up to 50 % of the purchase cost. The subsidy amount varies according to the type of heat pump and how it is used. For heat pumps, you can receive 80 000 Kč for a unit used for heating but not for hot water. A heat pump with a hot-water heating system that also heats water is eligible for 100 000 Kč. If the heat pump is also connected to a photovoltaic system, the subsidy can be as much as 140 000 Kč. Property owners or co-owners in the Czech Republic may apply; unlike the boiler replacement subsidy, applicants can be either individuals or legal entities (so companies can also apply).

Renovate Grandma’s House

You can also receive a heat pump subsidy through the new Renovate Grandma’s House programme, which is part of New Green Savings. It is intended for owners of family houses or recreational properties used as permanent homes who are economically active, including parents on parental leave. To receive this advance subsidy, applicants must carry out an optimal level of insulation to achieve the required energy savings. When applying for a subsidy for optimal insulation, they can also apply for support for other energy-saving measures, such as replacing the heating source. The subsidy covers 50 % of eligible costs. Up to one million korunas is available for comprehensive insulation. A family bonus is also available: applicants receive 50 thousand korunas for each dependent child. Households in the Karlovy Vary, Moravian-Silesian and Ústí nad Labem regions, as well as in municipalities supported by the state, receive an additional bonus of 10 % of the total subsidy amount.

Subsidy programmes are one way to obtain funding for the installation of a heat pump. There are certainly situations in which property owners are not eligible for any of the subsidy schemes because they do not meet the requirements. In such cases, they must rely on their own savings or bank loans. But there is still a way to save. A number of brands are currently offering attractive discounts. “If you choose our heat pump today, you will receive a discount of more than 50 thousand Kč in addition to the subsidy. For example, with our most powerful Schlieger Premium X21 heat pump, the standard price of 322 243 Kč falls to just 184 743 Kč after the state subsidy of 80 000 Kč and a Schlieger discount of 57 500 Kč. For the X11 model, the price drops to 159 907 Kč,” adds Pavel Matějovič.