2023-06-30 19:11:29
The heating law clears another hurdle after a long struggle in the coalition. Climate protection, choices in technology, social balance – that’s what the law should stand for.
Seldom in recent times has a political project been as controversial as the heating law. In the traffic light coalition of SPD, Greens and FDP, the plans caused a dispute that lasted for months. The FDP in particular demanded improvements. The traffic light agreed on fundamental changes.
The next step came on Friday: a more than 100-page paper with amendments to the original draft law went to the Bundestag. Another expert hearing is planned for Monday. The opposition criticized the tight schedule. The law is to be passed by the Bundestag in the coming week and thus before the summer break. What to expect for homeowners and renters
What does the law say?
In essence, the Building Energy Act (GEG) – the so-called Heating Act – stipulates that in future only heating systems that can be operated with at least 65 percent renewable energies may be installed in the future. With one important restriction: From 2024 onwards, the regulations of the GEG will only apply directly to new development areas. A high proportion of more climate-friendly heat pumps are already installed in such.
For existing buildings, the focal point should be mandatory and comprehensive municipal heat planning. This should be available in municipalities with more than 100,000 inhabitants from 2026 and for the remaining municipalities with more than 10,000 inhabitants from 2028. The law on heat planning is also scheduled to come into force at the beginning of 2024, but will only be passed by the Bundestag after the summer break.
In some municipalities there is already such a heating plan. So the question is: where does a local and district heating network make sense, where are more electrical solutions such as a heat pump, where does a switch to a gas or hydrogen network make sense? Federal states and municipalities should present concrete plans on how they want to convert their heating infrastructure to be climate-friendly – so that homeowners can use this as a basis to decide what to do.
According to FDP parliamentary group leader Christian Dürr, the state will pay in advance. “Only when it is clear what heating options a municipality has do the specifications apply – and even then it will be possible to install a convertible gas or oil heating system.” The heating has to match the house.
Why is the law coming?
The building sector is one of the “problem children” when it comes to climate protection. By 2045, however, Germany should become climate-neutral, i.e. not emit more greenhouse gases than can be bound again. For this reason, efforts should now also be intensified for buildings. The switch from fossil to renewable energies for heating is necessary because in Germany a lot of heating is still done with oil and gas, the Economics and Climate Protection Ministry justified the GEG amendment months ago: “So if we want to be climate-neutral by 2045, then a quick reversal in the building area is required.”
The Greens parliamentary group deputies Julia Verlinden and Andreas Audretsch called the law a “milestone” for climate protection on Friday. It is predictable and reliable for all heating system owners. However, environmental organizations criticize that the heat transition in existing buildings will be postponed.
How long can I continue to use my old gas or oil heating system?
No one should have to remove a gas heating system that works, you can also have it repaired. There are no bans and no interference with property, according to FDP faction leader Dürr. There is already a requirement in the GEG, according to which, under certain conditions and with exceptions, oil and gas heating systems that are more than 30 years old must be replaced. That shouldn’t change.
What happens if a gas or oil heater breaks down?
If a natural gas or oil heating system is irreparably broken, there should be a transitional period – according to the amendments, this also applies to planned heating exchanges. During the transition period of five years, heating systems that do not meet the requirements of 65 percent renewable energy can be installed, set up and operated. After the deadline, municipal heating plans should be available on site, on the basis of which the citizens should decide on a suitable climate-friendly heating system.
Can I still install gas or oil heating in the future?
Basically yes – but there are additional requirements. Anyone who wants to install such a heating system after January 1, 2024 should receive mandatory advice beforehand. The aim is to point out a possible “cost trap” due to rising CO2 prices, which are making fossil fuels more and more expensive.
Gas heaters, which should be convertible to hydrogen, can be installed until a heating plan is submitted. However, if the municipal heating plan does not provide for a hydrogen network, there will be gradual requirements for the addition of climate-neutral gases such as biomethane. From 2029, 15 percent, from 2035, 30 percent and from 2040, 60 percent of climate-neutral gases must be used. It should be possible to prove this on the balance sheet by purchasing corresponding proofs of origin or certificates from the supplier or by converting the heating system. The installation of a heating system based on biomass (wood, pellets) should be possible without restrictions in old and new buildings.
What is the government funding like?
The state wants to support the heat transition with billions. The money should not come from the normal federal budget, but from a special pot – the climate and transformation fund.
It is planned that, under certain conditions, up to 70 percent of the investment will be covered when purchasing a more climate-friendly heating system. There should be a uniform subsidy rate of 30 percent for all households, regardless of income. For households with a taxable income of less than 40,000 euros, there should be an additional subsidy of 30 percent. In addition, a “speed bonus” of 20 percent is planned – up to the year 2028. From 2028 this bonus is to decrease by 3 percentage points every two years. Overall, however, funding is capped at a maximum of 70 percent.
It is still unclear exactly which heating systems will be subsidised, i.e. whether modern gas and oil heating systems will also be supported. It is also unclear where exactly you can apply for funding.
What is important for tenants?
Landlords should be given incentives to invest in climate-friendly heating. Tenants should be protected from sharply rising rents. Those are the goals of the coalition. To this end, the traffic light wants to introduce another modernization levy, which landlords can use to pass on investment costs to tenants, for example in the case of renovations. In the case of a heating replacement, the modernization contribution can be increased from eight to ten percent per year – but only if the landlord takes advantage of state subsidies and the subsidy amount is deducted from the apportionable costs.
And: The maximum rent increase per square meter and month should always be capped at 50 cents, that should apply for a period of six years – and regardless of whether landlords pass the costs on to tenants via the previous or the new modernization levy.
In addition, hardship case objections should always be possible in the future when replacing the heating system. For tenants whose rent increases to more than 30 percent of their household income as a result of the modernization, there should only be a limited apportionment. In addition, rent increases due to heating replacement should be excluded for index rents.
What applies to over 80 year olds?
The traffic light factions deleted an originally planned special rule for over 80-year-olds. In the original draft law it was planned: For owner-occupiers of buildings with up to six apartments that are older than 80 years, in the event of a heating breakdown – i.e. if a broken heating system can no longer be repaired – the obligation to charge a heating system with 65 percent installing green electricity.
The amendments state that this passage has been dropped. FDP parliamentary group leader Carina Konrad said: “The envisaged age limit of 80 years would not be constitutionally acceptable. With targeted funding and a special social component, we ensure that social hardship is cushioned. In addition, there will be a KfW program with the possibility of lower interest rates to take out a loan.”
Green parliamentary group leader Audretsch said that a general hardship clause also applies. “Anyone who cannot meet the requirements of the Building Energy Act – whether due to personal circumstances or technical building features – can apply to be released from the obligations. This applies regardless of age.” (dpa)
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