Heating law: Minister calls for climate protection despite reforms!

Heating law: Minister calls for climate protection despite reforms!

Climate protection is the focus of the new Building Energy Act (GEG). Federal Environment Minister Carsten Schneider emphasizes that changes to the legal framework are necessary, but that the climate-relevant goals must be maintained in order for progress to be made. The reform of the GEG, which will come into force at the beginning of 2024, aims to promote the switch to climate-friendly heating systems. Schneider recently said that he is optimistic about the possibilities in the new climate protection program, which is also scheduled to be presented in spring 2024. The time reports that the reform is to be presented by Economics and Energy Minister Katherina Reiche and Construction Minister Verena Hubertz by the end of January 2024.

A central concern of the GEG is the replacement of outdated heating systems. From 2024, only heating systems that use at least 65 percent renewable energy may be installed in new buildings. Although many existing heating systems are still allowed to remain functional, the pressure to change is high, as around 75 percent of heating systems in Germany are currently powered by fossil fuels. As part of the new regulations, subsidies are also offered that make switching to renewable energies more lucrative.

Financial incentives for switching

A highlight of the reform is the financial support for the replacement of old heating systems, which will come into force from January 1, 2024. The funding enables homeowners to save up to 70 percent of the investment costs for new heating systems. Various technological options are envisaged, including heat pumps and solar thermal energy. The federal government informed that additional funds can also be applied for for energy-related renovation measures such as insulation.

The funding is not only aimed at private owners. Landlords, companies and non-profit associations also benefit from a basic subsidy of 30 percent. Particular attention is paid to the social orientation of the funding: up to 70 percent subsidy is possible for low earners, a measure that was highlighted by the Federal Minister for Economic Affairs and Climate Protection, Robert Habeck. The government also enables pragmatic interim solutions so that repairs to existing heating systems can continue to take place in the event of an accident.

Important key points for implementation

Municipalities must decide by mid-2028 where heating networks or climate-neutral gas networks will be expanded. This is an essential prerequisite for successfully implementing the GEG and ensuring the switch to renewable energies. The CO2 price for fossil fuels will also increase to 45 euros per ton in 2024 and rise to 55 euros in 2025 - a further incentive to switch to sustainable heating systems. The Federal Ministry of Economics emphasizes that funding applications for heating replacement can be submitted now, even if the official application is only possible later.

Overall, it shows that both the obligation to use renewable energies and the financial incentives can contribute to achieving Germany's climate goals. This reform is a step in the right direction to put the building sector on a more sustainable course.