More courage from politicians would be good

More courage from politicians would be good

Thomas Mader is certain: “The energy transition will only succeed if politics, business and society pull together and if economic incentives, legal frameworks and technological innovations are brought into harmony,” he is convinced. “We are doing something very sensible – and politicians should also take that to heart.”

Still very good until July

We, the managing director of Stiebel Eltron Austria, means the domestic heating industry, which needs clarity regarding the roadmap for decarbonization. This year the industry is suffering from the abrupt end of subsidies for boiler replacement - including Stiebel Eltron. The first half of the year was still positive for the company - the company was able to make gains compared to the previous year, especially in the heat pump segment. “Incoming orders developed very well until the end of July,” says Mader.

However, since the old funding rules expired, there has been a real slump in the market. Manufacturers now expect heat pump business to decline by 20 percent for the year as a whole. At Stiebel Eltron you expect to do better. “We expect a decline, but more in the range of five to ten percent,” says Mader. The year will not be a record year like 2024, but “certainly a sensible year”.

Looking ahead is characterized by uncertainty - especially with regard to the announced new funding structure, which is currently being discussed. There is speculation that applications for funding could be submitted again in November or December - that would possibly give the current year another boost. From Mader's point of view, however, the medium-term perspective is much more important. The government wants to fund boiler replacement with a total of 1.5 billion euros by 2030. Mader welcomes this measure: “This provides a clear time horizon and makes planning much more reliable.”

However, Mader is critical of the previously known details of the planned measures. A funding amount of 300 million euros per year is planned for the switch from oil and gas - but how much funding per household will actually be is still unclear. Mader advocates realistic and effective incentives: "With 2,000 euros per system, we won't see large numbers of units. It doesn't have to be 10,000 euros either, but a range of 7,500 to 9,000 euros, like we already had, would be a sensible compromise."

The managing director would like to see significantly more courage from the government in terms of economic and climate policy. What is currently being discussed is “too well-behaved and not innovative enough”. Austria is in danger of missing its climate targets - with expensive long-term consequences: If Austria has to buy CO₂ certificates at some point because targets have not been achieved, that would be “counterproductive”. Instead, real economic impulses are needed that at the same time secure domestic value creation. Mader: “The heat pump industry is strongly anchored in Austria and offers enormous potential for the economy and the environment.”

For him, a combination of targeted funding and clear legal requirements would be effective: “You can now try incentives – but if the exchange rate remains too low, you could create a legal framework.” Specifically: The government could decide on a timetable in which it is clearly communicated that boiler replacement is mandatory from a certain point onwards. “Anyone who invests today should know that the switch is not only encouraged, but will also be mandatory in the medium term,” says Mader. “But it is also necessary for the government to seriously focus again on the goal of achieving climate neutrality by 2040.”

Despite the economic downturn, the Stiebel Eltron manager remains optimistic. From the second quarter of 2026, he expects an upswing in residential construction again - not only in the area of ​​renovations, but also in new construction. "We see that the cooperatives are awarding more orders again. Construction costs have fallen, and we also expect interest rates to continue to move downwards," he says. This lays the foundation for both renovation and new construction to pick up again.

Stiebel Eltron sees itself as strategically well positioned in Austria. The company wants to continue to grow and gain market share. According to Mader, this is possible primarily through the expansion of the product portfolio: In addition to heat pumps, other segments of building technology will also come into greater focus in the future - such as living room ventilation, apartment stations or solutions for multi-story residential buildings. "In the past, Stiebel may have focused heavily on electric hot water heating. Today we can cover the entire building technology.

Our own production plays a central role. Mader: “That’s important to us – we offer complete solutions from a single source and with a high level of vertical integration.” The comprehensive product range is the basis for further growth on the Austrian market. It also wants to score points in the future in areas where the company has previously had less of a presence.

Mader is also particularly concerned about the industry's social mission. Working on sustainable energy technology not only makes economic sense, but also makes sense: “We operate in an area where you can really do something positive for the environment with your daily work.” This applies not only to the corporate strategy, but also to the self-image of the employees. "Sustainability must be a business model - and that's exactly what it is for us. Economically viable and ecologically sensible at the same time."