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Germany's new heating law doubles gas heating costs for renters and landlords
A study by the Institute of the German Economy (IW) estimates that operating a gas heating system in a typical 10,000 kWh‑per‑year Altbau apartment could cost up to €2,000 annually. The study projects annual expenses to rise from about €1,080 in 2026 to €1,952 by 2040 and €2,366 by 2045. The main driver is the newly introduced green‑gas quota – the so‑called “Biotreppe” – which will require at least 10 % renewable gases (biomethane or green hydrogen) from 2029 and 60 % by 2040, adding roughly €643 per year in extra costs.
The accompanying Building Modernisation Act repeals the previous rule that new heating systems must use at least 65 % renewable energy. It introduces a 50/50 cost‑sharing rule for CO₂ charges and gas‑network fees on newly installed gas, oil or liquid‑gas boilers, effective 1 January 2028. The split applies only to newly fitted fossil‑fuel heating units; existing systems continue under the old cost‑allocation rules. The measures affect millions of rental contracts as owners replace old boilers.
Entities
Friedrich Merz · German government · Institute of the German Economy (IW) · landlords · renters
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] The 50/50 rule does not apply to existing fossil‑fuel heating systems that continue operating. www.gegen-hartz.de
- [DISPUTED] Annual gas heating costs for a typical Altbau apartment are projected to rise from €1,080 in 2026 to €1,952 in 2040 and €2,366 in 2045. www.merkur.de
- [● 2 SOURCES] The green‑gas quota (Biotreppe) requiring 10 % renewable gases by 2029 and 60 % by 2040 adds about €643 per year in extra costs by 2040. www.t-online.de · www.merkur.de
- [○ 1 SOURCE] The previous requirement that new heating systems must use at least 65 % renewable energy has been removed under the new law. www.gegen-hartz.de
- [○ 1 SOURCE] The Building Modernisation Act introduces a 50/50 cost split for CO₂ charges and gas‑network fees on newly installed gas, oil, or liquid‑gas heating systems, effective 1 January 2028. www.gegen-hartz.de
- [DISPUTED] The Institute of the German Economy (IW) calculates that operating costs of a gas heating system can reach up to €2,000 per year. www.t-online.de