Coalition dispute over future of Germany’s climate friendly heating rules looming
Clean Energy Wire / ARD
The planned reform of Germany’s regulations to accelerate the phase-out of fossil fuels in the heating sector is causing a dispute in the country’s ruling coalition, with government members at odds over subsidies for households that install clean heating systems.
“Subsidies and support schemes must be rigorously reviewed,” economy minister Katherina Reiche from the conservative Christian Democrats (CDU) said. “Misguided incentives must be removed, even if this is painful,” she added, presenting her economic policy guidelines in a speech on 10 November. Reiche argued that the energy transition’s cost should be reduced across the board and support limited to cases where it is decisive. This means that "more individual responsibility will be required in future when replacing heating systems," she said.
By contrast, environment minister Carsten Schneider from the Social Democrats (SPD) told public broadcaster ARD that while changes to the Building Energy Act (GEG) are forthcoming, the law “will in essence remain the same” regarding the goal of emissions reduction. He also promised continued subsidies. "We support [investments in sustainable heating technologies]. You can receive up to a 70-percent-subsidy if you are on a low income, and we will continue that." He added that “depoliticising” the topic of heat pumps would benefit progress in the sector. The CDU-led economy ministry and the buildings ministry led by the SPD are preparing the reform.
A key element of the Building Energy Act - the so-called heating law that aims to gradually replace fossil-based heating systems with climate friendly alternatives - was introduced by the previous government. Obligations to change heating systems under the law had been relaxed after a draft by Reiche’s predecessor, Green Party economy minister Robert Habeck, triggered fierce opposition by conservative lawmakers and among the population. In their coalition treaty, the current governing parties had said they want to “abolish” the heating law but continue support for heating systems and building modernisation.
Under the current law, buyers of new clean heating systems such as heat pumps since early 2024 can receive up to 70 percent of the purchase price in support and the payable amount is capped at 21,000 euros. In new buildings, heating systems must run on at least 65 percent renewable energies, but existing heating systems do not need to be replaced if they are still functional.
Environmental Action Germany (DUH) called on the SPD to protect key elements of the law, and especially the requirement for a 65 percent-share of renewable energy. “False solutions such as hydrogen or biomethane should be erased because they lock-in fossil infrastructure long-term and become cost traps for customers,” DUH argued.
