Germany passes law to phase out gas and oil heating

Germany approves ban on new gas and oil boilers

On Friday, the Bundestag passed a law mandating that all new heating installations operate with at least 65% renewable energy. The legislation, part of Germany’s plan to achieve climate neutrality by 2045, received 399 votes in favor, 275 against, and five abstentions. This trinc months of internal coalition disputes between the Greens and the FDP that nearly collapsed the government. The construction sector emitted 112 million tons of greenhouse gases last year, accounting for 15% of the national total. While the Ministry of Economics estimates these measures will cut CO2 emissions by approximately 40 million tons by 2030, it acknowledges that the diluted final version will prevent the sector from meeting its annual targets.

What the law requires and when it applies

The text mandates that systems installed in new buildings and existing structures in areas with municipal heat plans must use 65% renewable energy. Starting next year, gas heaters may still be installed if they are hydrogen-ready, even in new developments not part of larger projects. The requirement to replace existing boilers only takes effect once municipalities approve their binding heat plans: no earlier than 2026 for smaller districts and 2028 for larger ones.

The final version is a compromise. Under pressure from the FDP, the coalition agreed in June to grant more time to citizens and property owners. Finance Minister Christian Lindner celebrated this on social media, stating it was no longer a law people should antiestéticar because the state would interfere in their boiler rooms. Opposition conservatives argue it remains a financial burden and a bureaucratic maze for claiming subsidies. Environmentalists lament the opposite: that constitutional climate goals will be missed and that alternatives like hydrogen or biomass are costly and risky for consumers.

Costs of switching boilers

Cost is the most contentious issue. A standalone gas boiler costs between €2,000 and €3,000. An air-source heat pump starts at €7,000 and can reach €18,000; ground-source systems can cost up to €45,000. On paper, green alternatives multiply the bill by three to fifteen times, excluding installation, insulation, and space requirements. Some note that natural gas will be replaced by biomethane, which is more expensive than fossil gas, while others point out that aerothermal systems often require significant renovation and loss of living space.

Insulation represents the second major expense. References circulate regarding EU directives that would mandate facade coating, window replacement, and boiler substitution before 2030 to achieve high energy certificates. In a building with 28 units, switching from oil to gas already incurred high costs years ago that were never amortized. Repeating this process with aerothermal systems is the most plausible option and is not cheap.

Energy background: less gas, more dependency

The law cannot be understood without European energy context. Some argue the real goal is not CO2 reduction but cutting access to cheap energy and breaking commercial ties with Russia and Algeria. They question where solar panels will come from if supply chains with China also tighten. Others cite peak oil as the explanation: there isn’t enough gas for everyone, and factories don’t run on blankets.

Technically, the debate shifted to thermodynamics. One side argues concentrated energy has lower entropy and renewables, with 20% efficiency, cannot compete with fossils. The counter-argument is that photovoltaics have become cheaper using electronic industry waste wafers, and invoking statistical mechanics to deny competitiveness is unsubstantiated. The discussion ended without resolution.

Who pays and who heats up?

The debate turns to taxpayers. If subsidies are needed for panels or heat pumps, some reason, they aren’t profitable on their own. Self-consumption aids range from 30-40% for individuals and 45-60% for companies. With the market not moving independently, the recurring conclusion is that regulations push what profit margins do not justify.

A common closing remark involves German retirees heading to Alicante, Malaga, or the Canary Islands. Predictions of mass migration of German pensioners to the Mediterranean appear repeatedly, half-jokingly. History, they say, is cyclical: Germanic tribes crossing the Rhine to live in warmer places.

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One fact remains unsettling. The ministry itself admits the diluted law will not meet the sector’s 2030 emission targets. The norm is approved, the timeline stretches, and the goal recedes. From this starting point, the question is no longer how much it costs to change the boiler, but who bears the cost of not changing it.