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New Heating Rules in Germany: Gas Heaters Allowed Again, Reduced Subsidies for Heat Pumps

Key Changes in Germany’s Heating Legislation

Germany is set to introduce significant changes to its heating laws under the upcoming Gebäudemodernisierungsgesetz (Building Modernization Act), effective from 2026. The focus keyphrase “heating law Germany 2026” is critical for those seeking information on these changes. Notably, the installation of new gas heating systems, specifically Erdgas (natural gas) heaters, will once again be allowed in new buildings, reversing previous restrictions. However, experts warn of potentially higher costs associated with gas heating systems. At the same time, subsidies for switching to more climate-friendly options, such as heat pumps, will be reduced, reflecting the government’s intention to reduce expenditure on heating incentives. These policy shifts represent a departure from the earlier Gebäudeenergiegesetz (GEG), which mandated that new heating systems must run on at least 65 percent renewable energies [Source 1].

Details of the Heating Law Germany 2026 Reforms

The current legal framework requires that new heating installations consist of a minimum of 65 percent renewable energy use. This mandate will be abolished under the new Gebäudemodernisierungsgesetz set to replace the GEG in mid-2026. The change intends to allow more flexibility in heating choices, including the reintroduction of natural gas heaters in new buildings, which had previously been restricted. While the 65-percent renewable obligation will no longer apply broadly, in specific new development areas this requirement remains temporarily intact. Additionally, the ban on fossil fuel-based heating systems after 2045 is also being reconsidered. This shift is part of the government’s efforts to manage financial pressures and balance climate goals with economic realities [Source 1][Source 2][Source 3].

The government plans to maintain subsidy programs for efficient heating replacements until at least 2029, but these will now offer less generous bonuses. For example, households with annual incomes up to €40,000 will retain a 30 percent subsidy for heater swaps, while higher income brackets will see lowered support. The overall emphasis remains on promoting renewable and low-emission technologies, but with more focus on cost control [Source 1][Source 5].

Impact on Expats and International Residents in Germany

These upcoming changes to the heating law in Germany affect a broad spectrum of residents, including expats, international students, and foreign workers who either own property or plan to rent in Germany. Expats purchasing or building new homes should be aware that installing gas heating systems will become legally permissible again, providing more options but possibly higher running costs due to market fluctuations. Those contemplating installing heat pumps should note the reduced government subsidies, which may impact the total investment needed.

Renters may experience changes indirectly if landlords adjust heating systems according to the new rules. Because heating systems generally have long service lives, any new installations must meet the current legal requirements until the new law takes effect in mid-2026. Expats should also keep in mind deadlines like the November 2026 implementation of the new law and potential municipal-level regulations, especially in cities with more than 100,000 residents where stricter rules on renewable heating may still apply temporarily [Source 2][Source 5].

To prepare, expats should plan heating upgrades or new installations while monitoring subsidy levels and legal obligations. Property owners must consider the evolving regulatory environment to ensure compliance and optimize financial support. Applying for subsidy programs such as those facilitated by KfW continues to be a recommended step for those replacing older heating systems [Source 1][Source 4].

For comprehensive details and updates on the heating law, including specific deadlines and subsidy programs, expats can refer to the original German government information and trusted news sources such as Tagesschau at Tagesschau [Source 1].

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