Why should I replace my old oil or gas heating system now?

Installing a modern heating system that uses renewable energies has several benefits:

Firstly, it can significantly reduce heating costs. Compared to many old oil or gas heating systems, modern ones require much less energy. A good example of this are heat pumps – they generate up to 80% of the heat produced from their surroundings, cutting heating costs by as much as 50% in comparison with an oil heating system.

Secondly, a new heating system helps to maintain the value of a property, which can prove advantageous if it is sold in the future.

Thirdly, it contributes to climate protection. A heat pump, for example, emits no CO₂.

Legal requirements

Homeowners with an oil or gas heating system should keep an eye on the legal requirements: from 2030 onwards—only renewable heating systems will be permitted—and from 2050 onwards, the use of fossil fuels will no longer be permitted.

Existing oil and gas heating systems can continue to be operated for the duration of their service lives, ­but from 2030 onwards must be replaced by a renewable system, such as a heat pump in the event of a defect.

Beware of electric heaters: these systems are real power guzzlers and are ­already banned in some cantons.

Financial support

The move to convert systems is supported by subsidies from the Swiss federal government, cantons and municipalities­, as are other measures to promote energy-efficient improvements, such as external wall insulation and window upgrades, for ­ example. This helps to reduce costs and enable people to pay off the ­investment more quickly.

Energy-efficient ­improvements also have tax advantages. However, the tax deduction options will be restricted over the coming years. This is due to the scrapping of the imputed rental value, which was approved by voters at the end of September.

Homeowners were previously able to deduct the costs of renovation and maintenance­work from their taxable income, but this benefit will cease to apply in some instances.

Benefiting from the old deduction

However, the actual abolition of the imputed rental value will not take place until 2028 at the earliest.­Anyone wanting to benefit from the old deduction for direct federal tax should press ahead with ­e­nergy-efficient improvements before the system change comes into force or bring them forward if necessary.

As greater demand in the construction industry is expected, we recommend planning any construction work in good time.

Important: Expenses for energy­-saving measures may remain tax-deductible at cantonal and municipal level, but this will be decided individually by the cantons and municipalities.

Marcel Müller is a customer advisor at Migros Bank and a mortgage expert.