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Factsheet for measure HU-2010-1/3477 – measures in Hungary

"H” tariff - Reduced tariff for home renewable heating sources

"H" díjszabás

Country Hungary , applies nationwide
Time period Open ended, started on 01 January 2010
Context Green Transition
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Retrofitting buildings
Author Nóra Krokovay (KOPINT-Tárki) and Eurofound
Measure added 22 February 2024 (updated 28 March 2024)

Background information

The 'H tariff' was introduced in 2010. The objective was to give an incentive for households to install heat pumps or apply other methods for heating with renewable energy sources. Before the introduction of this tariff, there was no national-level preferential tariff specifically for households heating via renewable energy sources. Only one of the large electricity providers provided an optional tariff for their consumers, on terms different from the H tariff.

Content of measure

'H tariff' is a complementary electricity tariff, specifically for the electricity use of renewable heating in homes: heat pumps and split systems with a SCOP value of at least 3.4, heating systems that use solar energy, etc. The energy consumption is measured separately from the generic electric consumption of the household. To use tariff H, a separate meter is needed to measure the consumption of devices using renewables for heating. The price set by the electricity provider for tariff H cannot be higher than the lowest price for tariff B, the government price-controlled tariff that offers a discounted price for off-peak hours. As of February 2024, the cost-per-kWh of H tariff is roughly HUF 23 (€0.06), which is lower by about one-third than the cost of the most generic tariff, A1, for consumption under 2523 kWh and lower by about two-thirds than tariff A1 for consumption above 2523 kWh. The H tariff can only be used during the heating season, from 15 October to 15 April. During the rest of the year, the electricity used by this equipment is priced according to the generic tariff.

Use of measure

According to the latest census in 2022, 67,853 households had heat pumps as a means of heating. About 68,000 consumers of Tariff H were reported in 2022, according to an expert in the field

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

No social partners' involvement was reported.

Views and reactions

The head of the construction trade union confederation ÉFÉDOSZSZ said the additional costs of installing equipment and meters fit for the 'H Tariff' can be costly and there are no government programmes covering these costs, which still makes these green investments pricey and risky for the average household.

Sources

Citation

Eurofound (2024), "H” tariff - Reduced tariff for home renewable heating sources, measure HU-2010-1/3477 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2010-1_3477.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.