Germany Repeals Heating Law Requiring Renewable Energy for new Installations

­Germany has relented on a controversial heating law mandate that would’ve helped them meet climate targets but also cost taxpayers dearly.

Back in 2023, Deutschland went ahead with a law banning the new installation of most oil and gas heating systems from 2024 onwards. At the time, The Guardian pointed out that about half of Germany’s 41 million households were using natural gas heating, with a quarter using heating oil.

And while the government allegedly pledged up to 70% in subsidies, going green – new heating systems would have to run on 65% renewable energy – would be far from the thrifty option. According to one source, a new gas heater costs about €10,000, while the renewable route runs anywhere from €17,000 to over €100,000.

The Greens naturally championed the bill but the fiscally-conservative Free Democratic Party (FDP) bemoaned the effect on poorer households and businesses. And all this was happening during Russia’s war in Ukraine, which virtually shut off natural gas exports to Europe.

But now Germany’s coalition government has passed a draft law partially invalidating the previous legislation by allowing homeowners to rely on fossil fuels. And this time, it’s the Greens taking umbrage.

“The CDU and SPD have made it abundantly clear today that climate protection is of no importance whatsoever to this coalition,” said the Greens parliamentary group co-leader Katharina Dröge. “The federal government has abandoned its climate targets.”

For her part, economy minister Katherina Reiche rejected the notion that this change undermines climate targets – which end with net zero emissions by 2045 – and instead emphasized consumer freedom.

“The aim of the heating law is to restore greater freedom of choice when replacing heating systems,” she said.