ᐅ Mandatory heating system rental for new builds – is that allowed?

Hello Forum,
I’m new here.
We plan to build and have come across a problem that is causing us a lot of headaches. I would like to hear your opinions on it.

A new residential development is being established in our town. Based on the developments of the last few months, the chances of us getting a plot are quite good. Fewer people want to build now. Money is tighter.

The building regulations are very strict. Among other things, a heat supply concept was developed in cooperation with the local utility company, which to me feels more like a stimulus program for the utility than anything else. But maybe I’m missing something.

For noise reasons, ground source heat collectors are being used, which the utility company is installing over a large area. The heating technology comes from the utility and can be used for a fee for either 10 or 15 years. The costs are outrageous compared to a standard air-to-water heat pump system for a KfW 55 or KfW 40 house.

Regarding the costs:

A one-time construction subsidy and connection fee of about €25,000 (approximately $27,000) must be paid. This covers the collector installation and connection to the network. Then, depending on the capacity of the heat pump provided, a monthly basic fee/service charge for availability of roughly €200 to €280 (approximately $215 to $300) per month for 6 kW must be paid for 10 or 15 years. On top of that, there are the actual heating costs, which here are about 8 cents per kWh (approximately 8 cents per kWh).

I am quite upset because the builders

1) cannot choose their own technology
2) are forced to design their energy system to fit into the utility’s infrastructure
3) am tied to paying the utility a fixed fee for 10 or 15 years
4) after this period, have to either install their own technology at their own expense (there is only a lifelong right to use the heat source) or continue with the utility’s system, possibly with further payments
5) it is not allowed/foreseen to couple the photovoltaic system to the heat exchanger, only to the household electricity (Is this really sustainable?)

What do you think? Of course, geothermal energy is much more efficient than air heat pumps, but if I add everything up, I will have paid between €58,000 and €64,000 (approximately $63,000 to $69,500) over 10 or 15 years (connection costs + technology rental + service fees, etc.) to the local utility, and that doesn’t even include the actual heat costs, which will be additional. I don’t own anything, and after 10–15 years, I have to deal with more costs to figure out what to do next.

I find this extremely exploitative and more like a sustainable stimulus program for the local utility rather than a truly sustainable heating concept.

What am I missing? This whole thing is being sold to the builders as especially sustainable. Environment and all that. And nobody complains; they are building like crazy.

Maulwurfbau schrieb:

What do you think about this?

Actually, it doesn’t really matter what we think. You only have two options because it’s a digital decision:

1. Be happy that you can build a nice house
2. Be annoyed about the heating system and just don’t build

Maulwurfbau schrieb:

Of course, geothermal energy is much more efficient than air-source heat pumps

If you’re only paying for the heat itself, it doesn’t matter how it’s generated. You don’t benefit from that difference.

Maulwurfbau schrieb:

When I add it all up, in 10 or 15 years I will have paid a total of €58,000 to €64,000 (connection fees + equipment rental + service fees, etc.) to the local utility company,

That’s definitely not overpriced. How much would a geothermal heating system cost you if you buy and install it yourself?

Maulwurfbau schrieb:

I have to expect additional costs in 15 years and see how things develop.

You face the same issue with ownership. If your owned heat pump breaks down after 12 years, you have to buy a new one, whereas in the utility model a new unit is not your problem. But that comes with a basic service fee.

Maulwurfbau schrieb:

I consider that extreme overpricing and more of a sustainable economic stimulus for the local utility company, rather than a sustainable heating concept for residents.

No, I generally think it’s good. Definitely not overpriced. Definitely sustainable.

SaniererNRW123 schrieb:

That’s definitely not excessive. How much would an earth heat pump cost you if you bought and installed it yourself?

I wouldn’t build an earth heat pump system myself at the moment, so the comparison isn’t relevant. With the roughly €70,000 (about $75,000) paid over 15 years, I could almost equip three houses completely with air-to-water heat pump heating systems. That means even if something breaks after 12 years, as you mention, the money I would pay is more than enough to replace or renew something several times over.

But thanks anyway for your assessment. 🙂

What you are describing is a district heating network. It only works efficiently if as many people as possible participate, which is why there is usually a connection obligation that is also legally enforceable. In theory, such a district heating system is a clean concept because it can benefit from economies of scale.

As for the costs, they seem quite high to me, especially the basic fee. That amounts to 2,500 euros per year just for the basic charge. The infrastructure development is harder to assess. There are certainly some economies of scale with the drilling, but a heat distribution network still needs to be built.

Ultimately, it is now too late for that. The issue should have been addressed in advance by the local council.

WilderSueden schrieb:

What you’re describing is a local heating network. It only works effectively if as many people as possible participate, which is why connection is mandatory and legally enforceable. In theory, such a local heating network is a clean concept because it can take advantage of economies of scale.

Regarding the costs, they seem quite high to me, especially the basic fee. That amounts to 2500€ per year just for the basic fee. The development costs are harder to assess. There are certainly some economies of scale with the drilling, but a heating network still has to be built.

In the end, it’s too late for that now; this issue should have been addressed in advance by the local council.

Yes, unfortunately that’s the case. It should have been addressed beforehand. You’re right about that. It’s certainly legally viable. I still find the costs exaggerated. There would also be an additional charge of around 100€ per year for a meter. Plus, of course, the psychological effect of feeling like a tenant again—just a passenger.

Maulwurfbau schrieb:

With roughly €70,000 in payments over 15 years, I could almost fully equip three houses with air-to-water heat pump heating systems.

You can do even more with the current single-unit systems—if they are available. But unfortunately, you don’t have a choice.