For replacing an oil heating system with a 40 kW air/water heat pump, the Canton of Bern’s 2026 subsidy rates work out to a contribution of CHF 8’500.— — CHF 4’500.— base plus CHF 100.— per kW. You are not allowed to pass exactly this amount on to the rent afterwards. That is exactly what the ordinance says, and it is the sentence on which most rent adjustments fail after a renovation.
Replacing a heating system in a multi-family building is not a heating question. It is a question of allocation: the canton bears one part, the tenants bear one part, and you bear the rest. Anyone who only separates these three parts once the boiler has already been removed can properly justify neither the funding application nor the rent adjustment.
| Who bears it | Which part | Basis |
|---|---|---|
| Canton of Bern | the subsidy contribution toward the new heating system, at most 35 percent of its cost | Canton of Bern subsidy program, 2026 rates |
| Tenants | the added-value share of the investment — via interest, amortization, and maintenance within the rent, after deducting the subsidy contribution | Art. 269a lit. b OR (Swiss Code of Obligations) · Art. 14 para. 2–4 VMWG (Ordinance on the Lease and Rent of Residential and Commercial Premises) |
| You | the maintenance share — what an equivalent replacement of the old boiler would have cost — and everything that is neither subsidized nor chargeable to tenants | Art. 14 para. 3 VMWG |
What the Canton of Bern pays
The cantonal subsidy program supports replacing a permanently installed, duly approved electric, oil, or natural gas heating system with a heat pump. What counts is the output of the new heating system, up to a maximum of 50 W per m² of energy reference area. The rates for the 2026 funding year:
| Measure | 2026 subsidy rate |
|---|---|
| Air/water heat pump up to 15 kW | CHF 6’000.— |
| Air/water heat pump over 15 kW | CHF 4’500.— plus CHF 100.— per kW |
| Air/water heat pump over 70 kW | CHF 3’200.— plus CHF 120.— per kW |
| Ground source or water/water heat pump up to 15 kW | CHF 10’000.— |
| Ground source or water/water heat pump over 15 kW | CHF 4’800.— plus CHF 360.— per kW |
| Ground source or water/water heat pump over 500 kW | CHF 84’800.— plus CHF 200.— per kW |
| First-time installation of a heat distribution system, energy reference area under 250 m² | CHF 15’000.— |
| First-time installation of a heat distribution system, energy reference area of 250 m² or more | CHF 60.— per m² |
The first-time installation of a heat distribution system is only subsidized if heating was previously decentralized.
Multi-family buildings are not excluded; they fall under building category I, “Wohnen MFH und EFH” (residential, multi-family and single-family homes). Two limits apply: the subsidy contribution is at most 35 percent of the cost of the new heating system, and contributions above CHF 200’000.— are not calculated linearly. The old heating system must be completely removed, including the boiler and burner, and after completion of the work, a GEAK (Cantonal Building Energy Certificate) must be obtained for residential buildings at your own expense — without a valid GEAK, the contribution will not be paid out.
The CHF 8’500.— from the introduction is our calculation based on these rates, not a commitment. What your property receives is decided by the canton upon application. The rates change annually; those named here are taken from the guide dated March 2026.
What may be passed on to the rent — and what the subsidy does to it
A heating replacement can constitute an added-value improvement (Mehrleistung). Art. 269a lit. b OR permits rents that are “justified by cost increases or added-value improvements on the part of the landlord,” and Art. 14 para. 2 VMWG expressly includes energy-related improvements among these — including measures to reduce emissions from building technical systems and to use renewable energy.
Four conditions limit this, and all four belong in your justification:
- Only the added-value share. Under Art. 14 para. 3 VMWG, only the portion of the costs counts “that exceeds the costs of restoring or maintaining the original condition.” What it would have cost to replace the old boiler with an equivalent one is maintenance and remains your responsibility.
- Subsidies are deducted. Art. 14 para. 3bis VMWG: “Subsidies granted for value-enhancing improvements are to be deducted from the amount of the added-value improvements.” Not from the total investment — from the added-value amount. This provision has been in force since July 1, 2014.
- Only a reasonable rate. Art. 14 para. 4 VMWG permits the increase insofar as it does not “exceed the reasonable rate for interest, amortization, and maintenance of the investment.” The ordinance does not specify a fixed percentage.
- Only after the work is done. Art. 14 para. 5 VMWG: notice may only be given “once the work has been carried out and the relevant supporting documents are available.”
Then there is the form. Notice is given using the canton’s official form, and under Art. 269d para. 2 OR it is void if this form is missing, or the justification. Art. 20 para. 1 VMWG requires that the difference amount be justified numerically, and Art. 19 para. 1 lit. a no. 5 VMWG requires the form to state whether you receive subsidies for value-enhancing improvements. So the question is on the form regardless. Anyone who has not calculated it beforehand answers it there for the first time.
A note on the common rule of thumb: the 50 to 70 percent from Art. 14 para. 1 VMWG apply, per the wording, to “comprehensive renovations.” A heating replacement carried out on its own is not such a renovation — the rate cannot be applied to it as a rule.
The figure that disappears during operation
With a heating replacement, a fourth factor comes into play that doesn’t exist with a kitchen or windows: operating costs change along with the system. The CO₂ levy has been CHF 120.— per tonne of CO₂ since 2022. It is charged when purchasing heating oil, natural gas, and coal, and is shown on the invoice. It does not apply to electricity.
If ancillary costs (Art. 257a OR) have been agreed, it ends up with the tenants via the heating cost statement: Art. 5 para. 2 lit. a VMWG counts the fuel consumed among the chargeable heating costs, and Art. 257a para. 2 OR states that ancillary costs are only payable if they have been specifically agreed. With an all-inclusive rent, you bear it yourself.
After the switch, the levy no longer applies. In return, electricity consumption rises. A reliable comparison requires your property’s consumption figures — the direction of the point is clear, the amount is not.
A side effect that regularly gets lost in conversations with tenants: two-thirds of the CO₂ levy’s revenue is redistributed, to private individuals via their health insurance premiums. For 2025, this amounted to CHF 61.80. This redistribution is independent of consumption — tenants receive it even after the heating system is replaced.
What applies in the Canton of Bern when replacing a heating system
There is no ban on fossil-fuel heating systems. There is a requirement: when replacing the heat generator in existing buildings of building categories I to VI, the share of non-renewable energy may not exceed 90 percent of the relevant demand. For buildings older than 20 years, this is demonstrated via a standard solution, Minergie certification, or GEAK class D. These requirements have applied since January 1, 2023.
Every replacement of a heat generator must be reported, via eBau (the canton’s digital construction platform), generally before construction begins. There is no deadline for oil and gas heating systems; for fixed electric heating systems, it runs until the end of 2031.
The sequence that determines everything else
The funding application must be submitted before construction begins: “Applications submitted later will not be considered.” This is a condition, not a recommendation — and the reason a planned replacement can do something that a breakdown in January cannot.
Report the heat generator replacement via eBau, submit the funding application on the cantonal portal. Applications submitted later will not be considered.
The old heating system must be completely removed, including the boiler and burner. The funding commitment is valid for four years.
Have a GEAK prepared at your own expense, then submit the payout application with the invoice and commissioning report.
Determine the added-value share, deduct the subsidy, apply a reasonable rate — justified numerically on the official form.
In detail:
- Obtain a quote with the replacement and improvement portions shown separately. You need this separation twice: for the application and later for justifying the rent adjustment.
- Report the heat generator replacement via eBau — a separate process, also generally required before construction begins.
- Submit the funding application on the cantonal portal, with the quote and photos of the existing system. The funding commitment is valid for four years.
- Carry out the work, completely remove the old heating system, have a GEAK prepared.
- Submit the payout application with the invoice, commissioning report, and GEAK.
- Only now calculate the rent adjustment: determine the added-value share, deduct the subsidy, apply a reasonable rate, and justify it numerically on the official form.
What a heat pump costs in a multi-family building is deliberately not stated here. There is no official figure for this, and a range from a comparison portal is not one either. A reliable figure for your property emerges with the first quote.
Frequently Asked Questions
Do I have to state the subsidy in the rent increase notice?
Yes. Art. 19 para. 1 lit. a no. 5 VMWG requires that, in the case of added-value improvements, it be stated whether subsidies for value-enhancing improvements are received. And under Art. 14 para. 3bis VMWG, they are to be deducted from the amount of the added-value improvements.
Can I raise the rent as soon as the contract with the installer is signed?
No. Art. 14 para. 5 VMWG only permits notice once the work has been carried out and the supporting documents are available. For larger projects, staggered increases based on payments already made are permitted.
In the Canton of Bern, can I still replace an oil heating system with another oil heating system?
The cantonal requirement stipulates that, when replacing the heat generator, the share of non-renewable energy may not exceed 90 percent of the relevant demand, demonstrated via a standard solution, Minergie, or GEAK class D. This is not a ban. In this case, however, no subsidy is paid.
What this means for your property
Every source for the figures and provisions above can be found on the sources page. Why procedural timelines affect the costs of a construction project is covered in our article on the cost of objections.
The three parts of the bill are settled before the installer arrives, or they are never settled cleanly. Let’s work through them for your property: Request a quote. Property management without surprises. 💙
All figures and legal references in this article are disclosed and linked → Sources.
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