New Heating Law Scraps 65% Renewables Rule

Germany has a new heating law. On 10 July 2026 the Bundestag passed the Gebaeudemodernisierungsgesetz, a building-energy law that replaces the much-debated Gebaeudeenergiegesetz (GEG) known to most people as the Heizungsgesetz. The most visible change is that the new heating law removes the rule that every newly installed heating system had to run on at least 65 percent renewable energy. For foreigners who own or rent a home in Germany, this reshapes the decisions and costs that come with keeping a house warm.

What the new heating law changes

The old GEG, introduced under the previous government, tied new heating systems to a hard renewable target. That is the rule the new heating law scraps. Handelsblatt reported that the Bundestag approved the bill by 322 votes to 272 on the last sitting day before the summer recess, and that the earlier 65 percent renewable requirement has been dropped in favour of what the government calls technology choice.

In practical terms, owners regain the freedom to decide how they heat. A heat pump, a district-heating connection, a gas boiler or an oil boiler are all allowed again. ZDFheute noted that the controversial paragraph requiring 65 percent renewable energy has been removed and that new gas and oil heating installations are permitted once more, reversing the stricter approach of the previous administration.

Gas and oil heating stay legal, but not forever

The reversal does not mean fossil heating is unconditional. The law keeps Germany’s target of climate neutrality by 2045, and heating fuels themselves must become climate-neutral by that year. So while a household may install a gas or oil system now, the fuel flowing through it is expected to change over the coming two decades.

To bridge that gap, the law introduces a rising blend requirement. According to ZDFheute, from 2029 new gas and oil heaters must burn an increasing share of climate-friendly fuels, starting at 10 percent and climbing toward 60 percent by 2040. Critics, including environmental groups, question whether enough of these fuels will be available and at what price, and some have signalled they may challenge the law in court.

What it means for landlords and tenants

The new heating law also tries to stop landlords from passing the full cost of a fossil-fuel choice on to renters. From 2028, a landlord who installs a new gas or oil system will have to cover half of the associated network fees, CO2 pricing and biofuel surcharges, with tenants carrying the other half. The idea is to give property owners a reason to think about running costs, not just the purchase price, since it is often the tenant who pays the monthly energy bill.

For the roughly half of Germany’s population that rents, this is the detail to watch. If you rent and your building still uses fossil heating, the split of these extra charges from 2028 could affect your Nebenkosten, the additional running costs billed alongside rent. It is worth understanding how heating costs appear on a German utility statement, and our guide to settling in at welivein.de/how-to-germany is a useful starting point.

How the new heating law cleared its final hurdle

The vote almost did not happen on schedule. On 9 July 2026, the Bundesverfassungsgericht, Germany’s Federal Constitutional Court, rejected emergency motions brought by Green and Left party members who objected to the speed of the process. The Tagesspiegel reported that the court found the applicants had not first told the coalition that they felt their rights were being violated, which removed the immediate legal obstacle and cleared the way for parliament to vote.

The emergency ruling settled only the question of timing, not the substance of the law, and legal disputes over the heating rules are expected to continue. Environmental organisations have already floated the possibility of a constitutional complaint, arguing that a softer path on heating could put Germany’s emissions targets out of reach.

What this means for expats in Germany

If you own your home, the new heating law gives you more room to choose and removes the pressure to install a heat pump the moment an old boiler fails. A gas or oil replacement is legal again, but plan for the blend requirement from 2029 and the 2045 climate-neutrality deadline, because a system bought today will still be in use as the fuel rules tighten. Getting independent energy advice before you commit is sensible.

If you rent, the cost-sharing rule from 2028 is the part that touches your budget most directly, so keep an eye on how heating and CO2 charges are listed in your annual bill. Either way, the direction of travel is clear even after the rollback: heating in Germany is meant to get cleaner over time, just on a slower and more flexible timetable than the old GEG demanded.