Heating Law Reform: Gas & Oil Heating Still Allowed – What’s Changing?

by Chief Editor

Germany’s governing coalition has reached an agreement to revise its heating law, allowing homeowners to continue installing oil and gas heating systems. The decision, reached on the evening of February 24, 2026, prioritizes greater flexibility for homeowners when replacing existing heating systems, with financial support continuing for climate-friendly alternatives.

Reform Details and Support

According to Minister Katherina Reiche, the reform provides more freedom of choice when replacing heating systems. The agreement stipulates that a growing proportion of the operation of these systems must be climate-friendly, utilizing fuels like biomethane or synthetic fuels. The homeowner association, Haus & Grund, supports the planned reform, stating that the condition of the building and actual energy supply will be key factors in future installations, potentially making the energy transition more affordable.

Did You Know? The agreement ensures funding for the purchase of climate-friendly installations, such as heat pumps, will be secured at least until 2029.

Criticism and Concerns

The revised law has drawn criticism from environmental groups and tenant advocates. The Green Party warned that Germany may now miss its climate targets, alleging the decision stems from a political alignment against former Green Economics Minister Habeck. The Deutsche Umwelthilfe described the agreement as fulfilling the wishes of the fossil fuel lobby.

The German Tenants’ Association expressed concern that the costs of the energy transition will largely fall on renters, as the relaxed regulations remove incentives for landlords to install climate-friendly heating systems, potentially creating a high cost risk for tenants.

Expert Insight: This compromise reflects a significant shift in approach to decarbonizing the heating sector, prioritizing homeowner choice and potentially slowing the pace of transition. The implications for Germany’s climate goals and the financial burden on renters will be key areas to watch in the coming years.

Looking Ahead

The coalition agreement allows for the continued installation of oil and gas heating systems, but requires an increasing use of climate-friendly fuels. Further debate will focus on the specifics of implementing this requirement and the level of financial support provided for alternative heating technologies. The effectiveness of the plan in achieving Germany’s climate goals remains to be seen, and could depend on the uptake of biomethane and synthetic fuels.

Frequently Asked Questions

What does the revised law allow?

The revised law allows homeowners to continue installing oil and gas heating systems, with a requirement that their operation increasingly utilizes climate-friendly fuels.

Who supports the reform?

The homeowner association, Haus & Grund, supports the planned reform, as does Minister Katherina Reiche.

Who is critical of the reform?

The Green Party and the German Tenants’ Association have both voiced criticism of the reform, raising concerns about Germany’s climate goals and the potential financial burden on renters.

As Germany navigates this shift in heating policy, how might the balance between homeowner freedom and climate responsibility be best achieved?

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