Berlin, Mar 10 (IANS): Germany is planning to launch a multi-billion-euro subsidy scheme to help homeowners to modernise their heating systems and boost the use of renewable energy sources, according to an official report.

"As a country, we now have the opportunity to build momentum together," Robert Habeck, the Vice Chancellor and Minister for Economic Affairs and Climate Action, said while presenting the report entitled "Renewing prosperity in a climate-neutral way".

On the way to becoming climate-neutral by 2045, Germany is seeking to gradually convert all heating systems to renewable energy sources.

By 2024, newly installed heating systems are to be powered by at least 65 per cent renewable energies, according to a recent draft law.

The new subsidy scheme will focus on low and middle-income households.

"Replacing (old heating systems) and climate neutrality must not and will not become a social problem," Habeck said.

Small and medium-sized industrial companies will also be supported in making their operations more climate-friendly.

According to the report, over 10 billion euros will be earmarked for this purpose alone.

These measures will help Germany to reduce its reliance on fossil fuels.

Last year, coal remained the main energy source in electricity production, representing an 8.4 per cent growth in the country's energy mix compared to 2021, according to the Federal Statistical Office.