Germany's new building heating law sparks tenant cost concerns

The German federal cabinet has introduced a draft Building Modernisation Act, presented by Economy Minister Katherina Reiche, to replace the existing heating provisions of the Building Energy Act (GEG). The draft removes the requirement that newly installed heating systems must source at least 65 % of their energy from renewable sources and eliminates the ban on gas and oil boilers after 2045. It also loosens the prior rule that fossil‑fuel boilers installed after 1991 could be used for only 30 years. The only remaining climate target is a stepped “biotreppe” that would still allow up to 40 % fossil fuel use in 2045.

The German Tenants' Association (DMB) warns that the changes could raise heating costs for renters, especially as gas, oil and CO₂ prices remain high. DMB president Melanie Weber‑Moritz said the cost increases would be split “half‑and‑half” between landlords and tenants, and highlighted the risk of higher district‑heat prices in a market lacking competition. The association also stresses that older, poorly insulated buildings will bear the greatest burden.

The debate reflects a broader political clash over the “freedom of homeowners” narrative promoted by the CDU and the opposition’s demand for stronger climate protection in residential heating.