Planned ban on oil and gas heating: What owners need to know now

Economics Minister Robert Habeck is pushing ahead with the energy transition. Millions of households will probably have to replace their heating systems.

Munich – From 2024, the installation of new oil and gas heating systems will no longer be permitted in Germany, according to the plan of the Federal Ministry of Economics. Instead, all heating systems must gradually generate 65 percent heat from renewable energies. From 2045, according to the draft by Economics Minister Robert Habeck (Greens), an operating ban on pure oil or gas heating systems is to follow. What may sound quite theoretical to most consumers in this country so far, however, could have concrete effects for homeowners, landlords and tenants in the foreseeable future.

The bill would "affect hundreds of thousands of plants per year," reports Spiegel.de. But what is actually in the draft, which is now boiling up even the minds of the Berlin traffic light coalition and provoking fierce resistance from the SPD and FDP?

This is what the draft law on oil and gas heating provides:

From 1 January 2024, according to the draft for the Building Energy Act (GEG) of 3 April 2023, the installation of pure oil and gas heating systems is to be banned. Every newly installed heating system will then be powered by 65 percent renewable energies. If a fossil heater breaks down, homeowners have three years to replace their device. In the meantime, they can heat with a conventional fossil fuel system. For example, a quickly newly installed gas heating system can later be combined with a heat pump to form a hybrid unit.

Oil and gas heating systems that have already been installed are usually allowed to run for a maximum of 30 years. According to the Spiegel report, the draft law provides for some transitional periods. However, newer condensing boilers or low-temperature boilers installed from 1999 onwards are to be phased out from the end of 2030 after 30 years.

In 2045, it will finally come to an end: fossil heating systems may no longer be operated, and climate neutrality is to be achieved in the entire building stock.

Replacing oil and gas heating systems: what does it mean for homeowners - Questions and Answers

The primary purpose of the law is to make a concrete contribution to saving fossil energy such as oil and gas and to climate protection. In addition, Germany wants to make itself independent of energy imports. So far, most consumers should have understood Robert Habeck's plans. But what applies to an oil or gas heating system that is not yet very old and currently intact? This is a question that also concerns many homeowners. According to Habeck's plans, this plant can continue to operate for many years to come. However, if this breaks irreparably, "a gas and oil heating system can no longer simply be installed," reports Spiegel.de.

The most important answers for homeowners:

What is new in the draft is that the government is increasing the pressure on homeowners' associations. According to the report, they are also no longer allowed to install new gas and oil heating systems in an apartment building and are forced to replace them with a renewable system. But for the replacement, the owners get time. They have up to six years from the creation of a concept to the replacement of the system.

The planned ban on oil and gas heating is causing uncertainty among homeowners. © Oliver Berg/dpa (symbolic image)

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According to Spiegel.de, around 20 million gas and oil heating systems are currently in operation. According to the BMWK, almost one in two of the approximately 41 million households in Germany heats with natural gas, followed by heating oil with just under 25 percent and district heating with a good 14 percent. Direct electricity heating and heat pumps each accounted for less than three percent. The remaining six percent was accounted for by combustion plants for solid fuels such as wood, wood pellets, other biomass and coal.

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The aim of the policy is to install 2024,500 new heat pumps per year from 000. According to the Energy Consultants' Association, a conventional pump currently costs between 35,000 and 40,000 euros. When assessing whether the installation is worthwhile for homeowners, so-called "qualified energy consultants" help. Here, too, the BMWK covers 80 percent of the costs (maximum 1300 euros).