Germany is poised to significantly alter its approach to heating systems in homes, with a recent agreement reached between the CDU/CSU and SPD coalitions. Even as financial support for climate-friendly heating options will continue through at least 2029, stricter regulations previously implemented by the “Ampel-Regierung” are being relaxed.
New Regulations and Reversal of Prior Rules
According to a five-page agreement, oil and gas heating systems will remain permissible for installation in residential buildings. Union faction leader Jens Spahn stated the changes will return control to homeowners, allowing them “the freedom to decide how they heat.” A previously contentious rule requiring all new heating systems to operate on at least 65% renewable energy has been eliminated.
Instead of mandates, the new law will not require the replacement of existing, functional heating systems. Gas and oil heating systems will still be allowed alongside options like heat pumps, district heating, hybrid models and biomass heating.
The Role of Sustainable Fuels
However, gas and oil systems will be required to incorporate a growing percentage of climate-friendly fuels, starting at 10% by 2029. These fuels could include biomethane or synthetically produced alternatives, and would be exempt from the CO2 tax applied to fossil fuels, incentivizing their use.
Protections for renters are as well included, aiming to prevent excessive costs associated with the installation of “uneconomical” heating systems, though specific details remain unclear.
Implementation and Future Outlook
Suppliers will be obligated to incorporate a percentage of climate-friendly gases and heating oil – including biomethane, hydrogen, and synthetic alternatives – into the market, beginning with a 1% quota in 2028. Communal heat planning will play a key role, particularly in existing buildings, allowing homeowners to choose between connecting to a district heating network or installing a more climate-friendly system.
A draft bill is expected to be presented by the cabinet in early April, followed by review by the Bundestag. The law is slated to take effect on July 1st. The reform builds upon the Building Energy Act, enacted in early 2024, which aimed to gradually replace oil and gas heating systems.
Frequently Asked Questions
What is happening with the 65% renewable energy requirement for new heating systems?
The rule requiring all newly installed heating systems to operate on 65% renewable energy has been eliminated.
Will there still be financial support for climate-friendly heating options?
Yes, funding for the purchase of climate-friendly heating systems, such as heat pumps, is expected to continue until at least 2029.
What is the role of suppliers in the new regulations?
Suppliers will be required to incorporate a percentage of climate-friendly gases and heating oil into the market, starting with a 1% quota in 2028.
As these changes move forward, will the new regulations be sufficient to meet Germany’s climate goals in the building and transportation sectors?
