Germany promotes bio‑LPG and heating cost reforms under building‑modernisation law

The German Building Modernisation Act (GModG) requires new heating systems to incorporate renewable energy sources. Bio‑LPG, a biogenic liquid gas, is presented as a compliant, flexible option for existing homes and small‑scale district‑heat networks, especially in rural areas without access to district heating. It can be retrofitted to current gas boilers, allowing homeowners to increase the renewable share without a full system replacement.

A cost analysis by the co2online portal shows that, over a 20‑year horizon (2026‑2045), fossil‑fuel heating will become markedly more expensive due to rising CO2 levies and the “bio‑step” – mandatory blending of biomethane, hydrogen or bio‑oil. The study estimates an extra €9,560‑€10,950 for gas with biomethane or hydrogen compared with pure gas, while oil heating faces even larger increases. In contrast, heat‑pump installations remain the cheapest solution, with air‑water pumps costing about €24,490 and ground‑source pumps around €22,040 over the same period.

Tanja Loitz, CEO of co2online, warned, “Too often the focus is on purchase price; total lifetime cost matters more. Our calculations show fossil heating will become a cost trap, and the bio‑step does not protect against it.”