North Rhine-Westphalia, Germany increases state subsidy for geothermal heating

Egelsberger Mühle, Krefeld, NRW, Germany (source: © Carschten / Wikimedia Commons)

Carlo Cariaga 11 Jun 2025

The state of North Rhine-Westphalia (NRW) in Germany has increased subsidies for the installation of sustainable heating solutions using geothermal heat pumps. New funding opportunities related to geothermal heating have also been announced.

The state subsidies for geothermal drilling have been increased as follows:

• New buildings will receive subsidies of €35 per meter instead of €5
• Existing buildings will receive subsidies of €50 per meter instead of €10

Aside from residents, companies and municipalities can also benefit from these funding opportunities. As part of the progres.nrw – Climate Protection Technology, new funding opportunities have been announced and existing ones have been improved:

• Municipalities are supported in managing the heat planning process through the “Educational Premium for Municipal Heat Planning.”
• Networked heat supply solutions being developed by homeowners’s associations, non-profit organizations, public institutions, and companies can apply for funding via the “Heating Concepts for Neighborhoods.”
• The state supports the use of wastewater heat to supply residential buildings, office buildings, and municipal buildings through the “Systems for extracting heat for pipeline-based heat supply.”
• The state promotes the use of geothermal heating for single and two-family homes through the funding module “Near-surface geothermal energy in combination with a heat pump.”

Through the progres.nrw – Climate Protection Technology program, the state of NRW has provided nearly  €20 million in funding in 2024 alone, supporting 1250 geothermal energy systems proposed by citizens, municipalities, and companies.

“In North Rhine-Westphalia, we want climate-friendly heating to become the new standard, not the exception – affordable, predictable, and accessible to everyone. That’s why we’re now promoting the switch to renewable heat sources such as geothermal energy even more strongly. This will ease the burden on our wallets through lower energy costs, protect our climate, and make us less dependent on expensive fossil fuel imports,” said Minister of Economic Affairs and Energ Mona Neubaur.

“Especially in times of rising energy prices and international crises, a reliable, clean, and affordable heat supply is a key to future security for all of us. Whether in a single-family home, a rental apartment, or a municipal building: every investment in renewable heat is a win for the environment, regional value creation, and the people here in North Rhine-Westphalia. Together, we are shaping the heat transition – practically, concretely, and in solidarity.”

Elsewhere in the state, the Geological Survey of North Rhine-Westphalia (GD NRW) has announced plans for geothermal research drilling in the city of Cologne by the end of the year. This follows up on ongoing research drilling in Krefeld, which has reached the target depth of 957 meters and has done a hydraulic test as of a June 2025 update.

Source: Wirtschaft.NRW