The Union and SPD have agreed on the key points of a new Building Energy Act, abolishing the existing heating law. Instead of a 65 percent requirement for renewables, there will be a gradual increase in climate-friendly shares for gas and oil heaters. The reform is set to take effect before July 1.
The grand coalition of Union and SPD has decided on a reform of the Building Energy Act, replacing the controversial heating law from the Ampel government. Union parliamentary group leader Jens Spahn stated: "We are abolishing Habeck's heating law." The heating cellar will become a private matter again, he emphasized. SPD parliamentary group leader Matthias Miersch described it as a "quadrature of the circle" that has been partially solved.
The new law, to be named "Building Modernization Act," lifts the requirement that new heaters must be operated with 65 percent renewable energy. Instead, it introduces a "bio-staircase": From 2029, new gas and oil heaters must use 10 percent climate-friendly fuels like biomethane or synthetic fuels, with the share increasing until 2040. This aims to meet EU climate targets.
Subsidies for climate-neutral heating systems are to continue until at least 2029, though details remain open. Consumers face higher costs: The Institute of the German Economy (IW) warns that biomethane is feasible short-term, but expensive hydrogen could raise a two-person household's gas bill by around 350 euros by 2035. Verivox notes that biogas with a 10 percent biomethane share is currently 25 percent more expensive than conventional gas.
Tenants are to be protected from excessive ancillary costs, but the wording in the key points paper is vague. Municipal heat planning will be relieved by 80 percent for small municipalities with up to 15,000 inhabitants. The bill is to be decided by the cabinet by Easter and take effect before July 1.
The industry reacts with mixed feelings: The industry association BDH welcomes the end of uncertainty, while the Building Industry Association HDB praises the compromise but sees gaps, as managing director Tim-Oliver Müller said. The opposition criticizes sharply: Greens' spokesman Kassem Taher Saleh warns of missed climate targets and dependence on fossil fuels. Left Party leader Ines Schwerdtner sees millions driven into a "fossil heating cost trap."
