Germany Revises Heating Law, Permits New Oil and Gas Boilers

The German government has drafted a new building‑modernisation law that removes the previous requirement for new heating systems to run on at least 65 % renewable energy. Under the proposal, owners may again install oil and gas boilers, while existing installations do not have to be replaced immediately. The plan also seeks to cut bureaucratic hurdles, simplify certification, and extend heating‑system subsidies to 2029.

Industry groups such as the Zentralverband Sanitär Heizung Klima and the Bundesverband der Deutschen Heizungsindustrie welcome the increased decision‑making freedom for owners. However, municipal representatives warn that the removal of renewable‑quota incentives could hinder the rollout of district‑heat networks and delay progress toward the climate goal of 60 % renewable heat share by 2040. Concerns focus on the loss of a reliable planning basis for local heat‑transition projects and the uncertainty over future biogas availability and pricing.