The new heating law has been passed. For the traffic light coalition, it is a central project on the way to a climate-friendly heat supply. There was a lot of dispute about the exact regulations.
The Bundestag has passed the heating law that has been discussed for months. It is intended to ensure that more and more apartments and buildings will be heated in a climate-friendly manner in the future. The law is officially called the “Building Energy Act” (GEG). It prescribes a gradual replacement of oil and gas heating systems that run on fossil fuels such as heating oil or natural gas. The law now goes to the Federal Council. It is likely that it will pass the state chamber at the end of September.
What are the key points?
From January 2024, every newly installed heating system should, if possible, be operated with at least 65 percent renewable energy. From 2024 onwards, the GEG regulations will only apply to new development areas. Existing heating systems should continue to run and can also be repaired. In other words: “There is no immediate obligation to replace existing heating systems,” emphasizes the federal government. There are transition periods and exceptions. Older homeowners or those with little money should not be overwhelmed.
Is there money from the state for new heating?
Yes. Under certain conditions, the state will cover up to 70 percent of the costs for a new heating system. The maximum eligible costs for a single-family home, for example, should be 30,000 euros. The maximum state subsidy is therefore 21,000 euros. There should also be low-interest loans. However, associations are already calling for improvements to the new funding program.
There should be basic funding for all residential and non-residential buildings for 30 percent of the investment costs. It should be open to all building owners. With an annual taxable household income of up to 40,000 euros, owner-occupiers should receive a further bonus of 30 percent. For owner-occupiers, there is a further bonus for replacing old fossil heating systems early.
What should happen to existing heating systems?
The pivotal point for existing heating systems should be mandatory and comprehensive municipal heating planning. Only when this is available will the requirements of the law for heating with at least 65 percent renewable energy also apply to existing buildings. Homeowners can then decide what to do.
If there are no heat plans yet, cities with more than 100,000 inhabitants should have until mid-2026 to develop their heat plans, according to the draft heat planning law. All other municipalities that do not yet have plans should submit them by June 30, 2028. Smaller communities with fewer than 10,000 inhabitants should be able to carry out a simplified heat planning process.
Such a municipal heating plan should, for example, show whether there is or will be a climate-friendly district heating supply to which a building can be connected. According to the federal government, this should provide “planning and investment security”. The Heating Act and the Heat Planning Act are therefore closely linked to one another. Both laws are scheduled to come into force on January 1, 2024.
What do new heaters have to be able to do?
The federal government says that the law is designed to be “technology-neutral.” This would allow owners to mathematically prove the required renewable energy share of at least 65 percent. The law provides other options for achieving this share: a district heating connection, an electric heat pump, direct electricity heating or heating based on solar thermal energy. Hybrid heating, i.e. a combination of renewable heating and a gas or oil boiler, is also possible.
Under certain conditions, there is also the option of so-called hydrogen-capable gas heaters, which can be converted to 100 percent hydrogen. Biomass heating or gas heating that uses renewable gases such as biomethane, biogenic liquid gas or hydrogen is possible for existing buildings.
There are also climate regulations for new systems that are installed in existing buildings in the absence of heat plans during the transition period until mid-2026 or mid-2028. From 2029, they will have to use an increasing proportion of biomass or hydrogen to generate heat. From 2029 it will be at least 15 percent, from 2035 at least 30 percent and from 2040 at least 60 percent.
What transition periods are there?
If a natural gas or oil heating system is broken beyond repair, there should be a five-year transition period – this also applies to planned heating replacements. During this period, heating systems that do not meet the 65 percent rule can be installed, set up and operated. After the deadline, local heat plans should be available on site, on the basis of which citizens should decide on suitable climate-friendly heating.
What about the operating costs for rental apartments?
The law is intended to protect tenants. So far, landlords have been allowed to pass on up to 8 percent of the costs of a modernization measure to the annual rent if, for example, they are renovating an apartment. A new modernization levy is now anchored in the GEG. Landlords should be able to pass on investment costs for replacing the heating system of 10 percent to the tenant. However, the condition is that government funding is claimed and the funding amount is deducted from the allocable costs. This is intended to give landlords incentives to replace heating systems. At the same time, a cap applies: the monthly rent should not increase by more than 50 cents per square meter of living space due to a new heating system. If further modernization measures are added, it could be two to three euros, as before.
What else is in the law?
Among other things, the Heating Act provides for an obligation to provide advice. It comes into play when new heaters are to be installed that run on solid, liquid or gaseous fuels. The advice is intended to point out possible effects of the municipality’s heat planning as well as possible inefficiency, particularly due to rising CO2 prices.
How big are the climate protection effects of the law?
This depends, among other things, on how quickly homeowners change their heating systems in the coming years. In 2022, CO2 emissions in the building sector were around 112 million tons. The Federal Ministry of Economics now assumes that, under favorable conditions, a total of 39.2 million tons of CO2 will be saved up to and including 2030, and around 10 million tons in 2030 itself. The ministry relies on a study by the Öko-Institut, which carried out model calculations for four scenarios.
In the worst case scenario, the vast majority of affected building owners would not decide on sustainable heating until the planned submission of a municipal heating plan. In this case, the CO2 savings would be a total of 10.8 million tons up to and including 2030 and 4.5 million tons in 2030 only. However, the ministry assumes that in any case the CO2 savings will increase over time .
How long can fossil fuels be used for heating?
According to the Heating Act until December 31, 2044. From 2045 onwards, buildings may only be heated in a climate-neutral manner using renewable energies.
How do German citizens heat at the moment?
Especially with gas. According to the energy industry association BDEW, almost half of the 43 million apartments and single-family homes were heated with natural gas in 2022. Oil heating is in second place with almost a quarter. District heating ranks third with a good 14 percent. Electric heat pumps have increased. While their share was 2.0 percent in 2017, it is now 3.0 percent. Electric heating provided heat in 2.6 percent of all apartments in 2022. Other types of heating such as wood pellets, solar thermal energy or coke and coal accounted for 6.2 percent.
Federal Government for the GEG Registration Online Lecture “Which heating system is right for my house?” PM Federal Government on municipal heat planning from August 16th. Bundestag agenda with amendments from the consumer center to the Building Energy Act study by the Öko-Institut
Source: Stern
