Germany's Heating Law Shifts Costs to Landlords, Adds €28,000 Subsidy

A new German building‑modernisation law will require landlords to share the cost of CO₂ levies and network fees for gas heating. Starting in 2028, landlords must pay half of the network charges and CO₂ costs, and from 2029 they also cover half of the additional expenses for blending climate‑friendly fuels such as biogas. For a typical 80‑square‑metre apartment, the extra annual burden could rise from €330 in 2029 to €761 by 2045, with a worst‑case estimate of €1,194. Property owners’ groups warn that gas heating will become uneconomic, and the environmental NGO Deutsche Umwelthilfe plans to challenge the law.

Separately, the KfW development bank introduced a new heating‑subsidy programme effective 21 July 2026. Households that replace old oil or gas boilers with renewable systems can receive up to €28,000, covering up to 80 % of eligible costs. Applicants must meet income limits, obtain an expert’s confirmation, and include a clause that the contract becomes effective only after KfW’s approval.