Quick answer: In the canton of St. Gallen, you can receive CHF 4'000 to 10'000 in subsidies for heating replacement. On top of that come tax deductions. Together, both can reduce costs by almost 40%.
Your oil heating is 25 years old -- what now?
The old oil heating is still running. But for how much longer? Many homeowners in Eastern Switzerland face this question. The answer: do not wait until it breaks down. Those who renovate now benefit from generous subsidies and save money in the long run.
Switzerland aims to be climate-neutral by 2050. Millions are flowing into energy-efficient renovations to achieve this. As a homeowner, you can benefit.
What is actually subsidized?
The national building program supports four areas:
- Thermal insulation -- Facade, roof, basement ceiling, and windows.
- Heating replacement -- Switching from oil or gas to a heat pump, wood, or district heating.
- Solar installations -- Photovoltaics and solar thermal systems.
- Building technology -- Controlled ventilation and heat recovery systems.
How much subsidy is available in the canton of St. Gallen?
The canton of St. Gallen is generous. Here are the key contributions:
- Heating replacement: CHF 4'000 to 10'000 when switching from fossil to renewable.
- Thermal insulation: CHF 40 to 60 per square meter of insulated surface.
- GEAK Plus consultation: CHF 1'500 for a comprehensive energy assessment.
- Minergie renovation: Additional bonuses for certified renovations.
Important: The subsidy application must be submitted before construction begins. Those who build first and then apply will receive nothing.
What additional tax deductions can I use?
Energy-efficient renovations offer double tax benefits.
Value-preserving measures
Like-for-like replacements are fully deductible:
- Heating replacement of equivalent capacity
- Window replacement
- Roof repairs
- Facade renovation
Energy-saving investments
Since 2020, you can also deduct value-enhancing investments if they serve energy savings:
- Installation of a heat pump
- Photovoltaic systems
- Improved thermal insulation
- Charging station for electric vehicles
Demolition costs
Are you demolishing an old building and rebuilding energy-efficiently? The demolition costs are also deductible.
What is the best approach?
Renovate strategically. This is how you get the maximum benefit:
- Have a GEAK Plus assessment done -- The energy consultation shows which measures have the greatest impact.
- Plan in stages -- Spread major renovations over multiple tax years. This maximizes the tax savings.
- Submit the subsidy application -- Always before construction begins.
- Obtain at least three quotes -- The price differences are often surprising.
- Consult your tax advisor -- So you do not miss any deductions.
Practical example from Wittenbach
The Müller family replaces their oil heating with a heat pump. Cost: CHF 35'000.
- Cantonal subsidy: approx. CHF 6'000
- Tax deduction (at a marginal tax rate of 25%): approx. CHF 7'250
- Effective cost: approx. CHF 21'750
That is a saving of almost 40%. On top of that come lower heating costs from day one.
Expert tip from Stefan: Submit the subsidy application before you commission the contractor. The canton of St. Gallen is strict about this. And spread major renovations over two tax years so you can fully utilize the deductions.
Conclusion
Energy-efficient renovations pay off twice: for the environment and for your wallet. Subsidies and tax deductions together significantly reduce costs. For more tax tips, see our article How can I save taxes with my property?. At Rüttimann Vision, we advise you on optimal planning and support you with your tax return.