Oil & Gas burner face-out subsidy (DK)


Challenge

Denmark aims to reduce dependency on natural gas as fast as possible. To that end 400.000 home-owners with heating based on fossil fuels needs to have new and green heating sources. Expansion of central heating systems will be a crucial part of the solution, but for homes, where this will not be an option the goal is to replace oil and gas burners with green, electricity powered heat pumps.

The aim of the policy is to make this transition as fast as possible and before 2030 by subsidizing the replacement of fossil fuels burners with heat pumps.

KEYWORDS

Thematic
Decarbonizing, Independence from gas, residential emissions

Legal
National

Tech
Grants management, automation, integration to public registry

Solution

After receiving an application from a citizen a series of automated checks are made. The subsidy is available on a first-come first-served basis. Therefore, the solution keeps track of the aggregated spending to decide when to close for applications. The first check makes sure, that there are still funds available.

The next step is automated control of register-based information from the applicant for eligibility. The Danish building registry contains data on heating source which is the first criteria. The proposed solution automatically checks if the applicant is eligible. Secondly the Central Heating Planning Database provides information as to current or future availability of central heating, which will lead to applications being disapproved.

If the applicant owns the house, register data can be validated and no other application is found on the same address, the application is automatically approved and proceeds to the payment caseflow. The applicant is given 2 years to install the heat pump and 30 days after installation to request subsidy to be paid out. This is automatically traced.

All other cases are manually screened and request for additional information is sent out if needed. Separation of functions makes sure, that all manual approvals are reviewed under a four-eyes principle and a manager signs off on all approvals through a mass operation.

The aggregated grants case keeps track of the total sum of approved applications and prohibits the acceptance of new applications after the ceiling has been reached.

Results

The Energy Agency needed a solution that would be ready fast and reduce the need for manual case-handling dramatically compared to earlier subsidy-schemes.

The solution is configured in 12 weeks including integrations and is expected to handle a significant part of the cases automatically without any manual case work at all from application to payment, accounting and archiving.


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