Anticipating Costs: Examining the Future of Your Heating Expenses
In the heart of Europe, Germany is undergoing a significant shift in its state-funded heating system replacement project, with the goal of making the country's heat supply climate-friendly. The Heating Law, passed by the Bundestag on September 8, 2023, and enacted at the beginning of 2024, aims to gradually replace oil and gas heating systems, with every new heating system operating with 65% renewable energies, initially for new construction areas.
However, the Heating Law, a contentious project of the black-red coalition, is facing criticism and calls for change. Some politicians, like CSU leader Markus Sรถder, are pushing for cuts due to budget gaps in the federal budget. The black-red coalition now wants to reform the law to make it more technology-open, flexible, and simpler, with the achievable CO2 reduction as the central control variable.
Critics focus on Paragraph 71 of the GEG, which contains the 65% target for renewable energies in new heating systems. The deputy chairman of the SPD parliamentary group insists that the target should be maintained, but there is no compulsion to use heat pumps, as building owners have a range of alternatives to achieve the target.
The heating market has collapsed since the beginning of the year, and the economic crisis is hitting heating manufacturers hard, who expect the worst sales in 15 years. The Federal Association of the German Heating Industry states that the previous funding programs under the Heating Act have significantly contributed to establishing modern and efficient heating technologies on the market and saving millions of tons of CO2.
Heat pumps can significantly reduce heating costs, and it is urgent for the federal government to provide clear and reliable framework conditions to boost their sales. The chief executive of the Federal Association of Energy and Water Industry, Kerstin Andreae, prefers a reform that regulates Paragraph 71 "simpler, more understandable, and more practical."
The reform aims to make the German heat market more sustainable, with around 40% of German CO2 emissions generated in the heat market. Municipal heat planning is crucial for existing buildings, with availability in municipalities with over 100,000 inhabitants by mid-2026 and for the rest by mid-2028.
The black-red government aims with the Building Energy Act to phase out fossil fuel heating by 2044, require new buildings from 2030 to be zero-emission, promote solar energy use on new and public buildings from 2027, and expand sustainable mobility infrastructure like EV charging and bicycle parking.
The current reform debates are crucial for the rapid restoration of planning security to enable quick investments. The law must be technology-open, pragmatic, and simple, according to Andreas Lenz, energy policy spokesman of the CDU/CSU faction. The maximum investment subsidy for heating replacement is 21,000 euros under the current funding programs.
As the Heating Law continues to evolve, it remains to be seen how the changes will impact the German heating market and the country's efforts to become more sustainable. The rapid restoration of planning security is crucial to enable quick investments and ensure a smooth transition towards a more climate-friendly heat supply.
