Government changes plans for heating systems

Newly installed heating systems must be 65% powered by renewable energies

Starting in 2024, newly installed heating systems in new buildings must be operated with renewable energy sources at a minimum of 65%.

Less strict rules apply to older buildings. If a heating system is defective and cannot be repaired, a gas heating system may still be installed, even if it does not meet the 65% target.

Landlords or property owners only need to take action when municipalities present specific heat planning. If no such plannings exists, the new rules do not apply to existing buildings. Heat plans for major cities in Germany are expected to be available by the end of 2026.

Starting on January 1st, 2024, The Building Energy Act and the Heat Planning Act will come into effect, obligating municipalities to submit corresponding heat plans. From 2024, new buildings must be able to operate with renewable energy sources at a minium of 65%. Defective heating systems in new buildings can be repaired, but if they are irreparable, the owner has 3 years to install a new heating system. For multi-family houses, the timeframe is up to 10 years in some cases.

Landlords who invest in climate-friendly heating systems and utilize funding offers should be entitled to a "modernization surcharge", provided that tenants also benefit financially from the funding. Discussions are also underway regarding state subsidies. From 2026, pure oil heating system may no longer be installed, as per the Oil Heating Prohibition (GEG).

By 2045, all fossil fuel heating systems in Germany are expected to be phased out in order to achieve climate neutrality.

Berlin, 30.06.2023

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