The European Commission issued guidance on 17 October on phasing out financing for stand-alone fossil fuel boilers from 20251. The phase-out is a legal requirement set in the revised Energy Performance of Buildings Directive (EPBD), article 17.15, which states that from 1 January 2025 Member States shall not provide any financial incentives for the installation of stand-alone boilers powered by fossil fuels1. The Commission's guidance notices are non-legislative and therefore non-binding documents intended to clarify EU legislation and support its transposition and implementation at national level1.
The guidance distinguishes stand-alone boilers from hybrid heating systems with a considerable share of renewable energy, such as a boiler combined with solar thermal1. A hybrid heating system may be manufactured as such, or the hybridisation may take place at the time of installation or be added afterwards as on-site hybridisation1. For hybrid systems, financing is allowed, but should only cover the parts linked to the renewable generator, or be proportionate to the share of renewables used in the system when it is factory-made1. The definition of what constitutes a considerable share of renewable energy is left to Member States, which must ensure it aligns with the spirit of the provision1.
Other aspects set out in the guidance include that whether a gas boiler counts as powered by fossil fuels depends on the fuel mix in the gas grid at the time the boiler is installed1. The provision does not cover the disbursement of incentives granted and communicated to the beneficiary before 1 January 2025, and it exempts financial incentives selected before 2025 that are funded by specific programmes listed in the EPBD and the guidance, such as the Recovery and Resilience Facility or the European Regional Development Fund1.
"From 1 January 2025, Members States shall not provide any financial incentives for the installation of stand-alone boilers powered by fossil fuels"
| Point | Position under the guidance |
|---|---|
| Stand-alone fossil fuel boiler | No financial incentives from 1 January 2025 |
| Hybrid system with a considerable renewable share | Financing allowed, limited to the renewable parts or proportionate to the renewable share |
| Incentives granted and communicated before 1 January 2025 | Not covered by the provision |
| Incentives selected before 2025 under listed programmes | Exempt |
Why it matters for households
The change concerns public financial support, not the sale or installation of boilers themselves. For a household considering a heating upgrade, the practical effect is on what grant or subsidy may be available towards a stand-alone fossil fuel boiler, and from when. The guidance leaves the definition of a considerable share of renewable energy to each Member State, so the treatment of hybrid systems, including a boiler combined with solar thermal, will depend on national criteria that have not been reported in detail1. How the requirement is applied in the UK has not been reported, as the provision sits in EU legislation. Households weighing up finance for boilers, solar, batteries and heat pumps are affected mainly through the eligibility rules of any scheme they use, and through whether a system counts as stand-alone or hybrid at the point of installation.
What happens next
Solar Heat Europe said it will follow up with its members to organise a meeting of its Buildings Working Group to discuss the topic, in particular the definition of a considerable share of renewable energy1. No date for that meeting has been reported.