Germany's New Building Heating Law Delays Renovations

Germany's draft Building Modernisation Act (GModG), approved by the cabinet on 13 May 2026, eliminates the previous rule requiring 65 % renewable heat in new installations and gives owners the freedom to choose heat pumps, hybrid, pellet or conventional gas and oil systems. The shift places the full decision‑making burden on property owners, creating uncertainty that is prompting many to postpone heating upgrades until the legislation is finalised.

The law also introduces stricter standards for building envelopes: a zero‑emission target for new constructions from 2030 (2028 for public buildings), a phased solar‑installation requirement, life‑cycle CO₂ accounting and minimum energy standards for existing non‑residential structures. For gas and oil heaters, a “bio‑ladder” will require increasing shares of biogenic fuels starting at 10 % in 2029 and rising to 60 % by 2040. A new rent‑protection rule will split operating costs of newly installed gas or oil boilers between landlords and tenants.

Because the Bundestag’s first reading is still pending and the Bundesrat may lodge objections by 12 June, many owners are delaying replacements, risking future supply bottlenecks, labour shortages and higher prices.