Germany's government set out changes to subsidy guidelines on Wednesday to try and boost the renewable sources of energy used to heat buildings and offices as it strives to avoid missing its ambitious climate targets.

 

Renewable sources of energy accounted for almost 28 percent of Germany's electricity last year, but only 9.9 percent of its heating, far below a target for a 14 percent share by 2020.

 

"Through improved incentives we want to significantly speed up the expansion of renewable energy in the heating market," Economy Minister Sigmar Gabriel said in a statement.

 

Under the changes, the government has reformed a market incentive program worth 300 million Euros ($318 million), to include revenue dependent support for solar heat as well as ambitious efficiency criteria.

 

The program also envisages a bonus for small and mid-size companies that invest in renewable sources of heating as well as grants and loans for bigger companies.

 

In the aftermath of Japan's Fukushima disaster, Chancellor Angela Merkel has accelerated a shift away from nuclear power and fossil fuels towards renewable sources of energy such as wind, hydro, solar and biomass power.

 

Last December, the government announced a package of measures to cut CO2 emissions by up to 78 million tonnes by 2020, including a national efficiency plan which envisages savings of 25-30 million tonnes of emissions by modernizing buildings and improving insulation.

 

($1 = 0.9427 Euros)