Geywitz: Replacing heating early can be worthwhile

Rarely has a government argued internally as much as the traffic light coalition over the Heating Act. It is now coming into force. However, it has little to do with the original draft. Only a few property owners are still under pressure to act, at least for the time being.

The new heating law came into force at the beginning of the year after months of bitter debate. The most important message: the vast majority of homeowners do not have to do anything for the time being. Functioning heating systems can continue to be operated. Shortly before the start of the new Building Energy Act, there is finally clarity about future state subsidies.

Even if the pressure to act is no longer as great as envisaged in the original draft bill, Building Minister Klara Geywitz is encouraging consumers to replace their gas heating systems more quickly. "It can be worthwhile replacing the heating system more quickly and not installing a new gas heating system," Geywitz told the Funke Mediengruppe newspapers. One incentive is the climate speed bonus in the heating subsidy. However, the minister added that everyone had to make the decision for themselves.

The core of the Building Energy Act is the requirement that newly installed systems must be powered by at least 65 percent renewable energy. However, unlike originally planned, this only affects a small number of households - namely only new buildings in new development areas. As a general rule, functioning heating systems can continue to be operated. Broken heating systems can be repaired.

Clarity on subsidies recently

For all other households, the new regulation only applies if there is a municipal heating plan. This should be available from mid-2026 in large cities and from mid-2028 for the remaining municipalities. Homeowners should then have clarity as to whether they should be connected to a district heating network, for example, or whether they should look for their own decentralized solutions for a new heating system - such as a heat pump. Sooner or later, most house and apartment owners will have to buy a new heating system.

Politically, the law remains controversial. The CDU/CSU rejects it in its entirety and is calling for it to be abolished. In the event of a change of government, a reform or even abolition could be at the top of the list for deletion.

The new funding guidelines and subsidies for investment costs have recently been clarified. The most important innovation: there is a speed bonus for owner-occupiers for the early replacement of old fossil fuel heating systems. This is intended to provide an incentive to switch, even if the heating system is still working. The bonus is granted for the replacement of functioning oil, coal, gas or night storage heating systems as well as biomass and gas heating systems that are more than twenty years old. An extension of the speed bonus for the replacement of particularly old heating systems, which had been planned in the meantime, was canceled for cost reasons.

The maximum subsidy rate for the installation of heating systems is to be increased by up to 70 percent for private individuals. Every owner who installs a climate-friendly heating system should be able to receive a 30 percent subsidy. A further 30 percent is reserved for low-income homeowners. There is also a "climate speed bonus" of 20 percent, which is reduced over time. These pillars can be combined to a maximum of 70 percent.

Sudden boom in gas and oil heating systems

Geywitz defended the mandatory advice that will be provided in future before a new gas heating system is installed. "It makes sense to point out to people that gas heating is becoming an expensive heating system - simply because the price of CO2 is rising," she said. "If we don't communicate the consequences of technical upheavals, we could be in for a rude awakening."

The long wrangling over the Heating Act has apparently also had the effect that many homeowners have bought a new gas heating system - the industry is heading for a record. "Most people have invested in a gas heating system quickly in order to avoid the requirements of the GEG," said Ralf Kiryk, Head of Department at the Federal Association of the German Heating Industry.

According to the association's figures, sales of gas heating systems had increased by 38 percent to around 694,500 units by the end of October, while sales of oil heating systems had increased by 107 percent to 94,500. Sales of heat pumps for heating systems rose by 75 percent to 320,500. However, interest in heat pumps had waned as a result of the GEG debate.

According to a study by the energy industry association BDEW in November, just under half of the 41.9 million homes were heated with natural gas in 2023. Oil heating is in second place with almost a quarter. The Ministry of Construction points this out: In most cases, it makes sense to switch to renewable energy heating now. This helps to protect the climate and is also economically attractive, as there is financial support - even if the heating system is still working.