June 17, 2025, 4:45 am | Read time: 7 minutes
The political compromise has not exactly simplified the planned rules for heating system replacements. In some areas, more questions remain than answers. Here’s what is set to take effect and what could still cause disputes.
Millions of homeowners and renters are expected to gain more clarity this summer on the guidelines for switching to climate-friendly heating systems. The coalition government has significantly relaxed the heating law. In most regions of Germany, property owners will now have more time to replace their heating systems. Initially, municipalities must take action. However, key questions, especially for homeowners and renters, remain unresolved after the agreement on heating replacement–and could lead to new crisis meetings within the coalition.
Overview
- Agreement on Heating Replacement–What Applies to New Buildings?
- What Happens in My Existing House?
- Why Does Heat Planning Play Such a Key Role?
- How Do I Know if My Municipality Already Has Such a Heat Plan?
- Why Is the Use of Hydrogen-Convertible Gas Heaters Controversial?
- Where Is There Still a Need for Political Clarification?
- What Does the Agreement Mean for Climate Protection?
Agreement on Heating Replacement–What Applies to New Buildings?
According to the coalition’s plans, starting in January 2024, new heating systems in new development areas must be operated with at least 65 percent eco-energy. This could mean installing a heat pump, connecting to a heating network, or other options like direct electric heating. Heating systems powered by wood and pellets will also be allowed. According to the German Association of Energy and Water Industries, a heat pump is already installed in every second new building.
Those building outside new development areas may still be allowed to connect to an existing gas network, but only if the municipality has no local heat planning or a climate-neutral gas network is planned, meaning a network through which climate-friendly gases can also flow. Only gas heaters that can eventually be converted to climate-friendly hydrogen may be used in such cases.
Heat pump Heating network in every second new building.
Can rent be increased after heating replacement?
What Happens in My Existing House?
In general, the principle applies that a municipal heat plan must be in place before switching to a climate-friendly heating system. Otherwise, property owners do not have all the information they need to choose the most cost-effective heating option for them. The state must deliver first. Where there is no municipal heat planning, gas heaters that can be converted to hydrogen may still be installed. Once the heat planning is in place, this will only be allowed if a climate-neutral gas network is planned or if the heating system is powered by biomass. Heat pumps and connections to a heating network will also be permitted.
In general, the principle applies: A municipal heat plan must be in place before switching to a climate-friendly heating system. This is because, without it, property owners do not have all the information to choose the most cost-effective heating option for them. The state must deliver first.
Can rent be increased after a heating system replacement?
Why Does Heat Planning Play Such a Key Role?
Connecting to a heating network like district heating is the simplest option for homeowners–though not necessarily the most cost-effective. However, one must know whether such a connection is possible. After the heating replacement agreement, states and municipalities are expected to present specific plans on how they intend to convert their heating infrastructure to be climate-neutral. Whether there will be a mandatory connection to district heating is still open, but it is quite possible. The decision lies with the states, not the federal government.
Currently, it is unclear whether there will be a mandatory connection to district heating, but it is quite possible. The decision lies with the states, not the federal government. Such a connection is the simplest option for homeowners, although not necessarily the cheapest.
How Do I Know if My Municipality Already Has Such a Heat Plan?
According to a spokesperson, those interested in finding out whether their municipality already has a heat plan or how far along it is can inquire at town halls or with their local energy provider. The energy provider can also provide information on whether and when a connection to a district heating network is possible.
Currently, it is uncertain whether there will be a mandatory connection to district heating, but it is quite possible. The decision lies with the states, not the federal government.
Why Is the Use of Hydrogen-Convertible Gas Heaters Controversial?
The use of such heaters is controversial because, while they can be converted to run on hydrogen, the availability of hydrogen for residential heating is uncertain. Large quantities of hydrogen are expected to be needed for the climate-friendly transformation of the industry. It is debated how much will be left for heating residential buildings.
Before a decision is made, which is aimed for by July 7, the Bundestag committees and possibly higher levels of the parliamentary groups must still be involved. Transition periods are among the open questions, as is the age limit for mandatory replacement. The coalition’s paper mentions an “additional modernization levy,” allowing homeowners to pass on the cost of a new heating system to their tenants–but only if the tenants also benefit financially. Details remain completely open, as does the amount of state funding available for the replacement.
Where Is There Still a Need for Political Clarification?
The coalition’s agreement is interpreted differently when it comes to climate protection. Green Party parliamentary group leader Katharina Dröge emphasized: “We are maintaining high standards for climate protection.” However, environmental groups argue that gas heaters will continue to be installed for years. “If municipal heat planning is to be completed first, then climate-damaging gas heaters will continue to be installed in most municipalities until 2028,” said Andree Böhling of Greenpeace. The Environmental Action Germany criticized that gas heaters will continue to be installed for years to come.
Can rent be increased after the heating system replacement?
He himself assumes that up to 20 percent of heating in Germany will be done with hydrogen in the future, mainly through district heating. Heat pumps are expected to account for around 40 percent.
What does the agreement mean for climate protection?
Using District Heating – Key Questions and Answers
Plans for Heating System Replacement Approved: What Homeowners Need to Know
EU Plans Refrigerant Ban for Heat Pumps Starting in 2027–What’s Behind It?
What Does the Agreement Mean for Climate Protection?
Here, too, the coalition’s outcome is interpreted differently. Green Party parliamentary group leader Katharina Dröge emphasized: “We are maintaining high standards for climate protection.” However, environmental groups like Greenpeace have criticized that gas heaters will continue to be installed in most municipalities until 2028, as municipal heat planning must first be completed. The Environmental Action Germany has also criticized that gas heaters will continue to be installed, potentially for years to come.
Can rent be increased after the heating system replacement?
He himself assumes that up to 20 percent of heating in Germany will be done with hydrogen in the future, mainly through district heating. Heat pumps are expected to account for around 40 percent.
He believes it is good to keep this option open. The German Association of Energy and Water Industries estimates that up to 20 percent of heating in Germany will be done with hydrogen in the future, mainly through district heating. Heat pumps are expected to account for around 40 percent.
Can rent be increased after the heating system replacement?
Using District Heating – Key Questions and Answers
Plans for Heating System Replacement Approved: What Homeowners Need to Know
EU Plans Refrigerant Ban for Heat Pumps Starting in 2027–What’s Behind It?
What Does the Agreement Mean for Climate Protection?
Here, too, the coalition’s outcome is interpreted differently. Green Party parliamentary group leader Katharina Dröge emphasized: “We are maintaining high standards for climate protection.” However, Greenpeace’s Andree Böhling pointed out that if municipal heat planning is to be completed first, climate-damaging gas heaters will continue to be installed in most municipalities until 2028. The Environmental Action Germany also criticized that gas heaters will continue to be installed for years to come.
Can rent be increased after the heating system replacement?