Some initial details are emerging about the proposed changes to the unpopular Building Energy Act (also known as the Heating Act). According to press reports, the subsidies for a renovation to, for example, a heat pump are expected to remain; however, the replacement deadlines are likely to be abolished. Currently, the law requires a replacement of the heating system once it reaches 30 years of age, regardless of whether it is still functioning properly or not.
Additionally, the ban on wood stoves, which caused frustration in rural areas, is expected to be lifted and the expansion of district heating is to be encouraged. This support is necessary because district heating networks are primarily operated by municipalities, which currently do not have the resources to drive expansion. The requirement to obtain 65% of this district heating from renewable sources is also likely to be abolished.
However, it is planned to force consumers to replace their heating systems through significantly increasing prices for heating oil and natural gas. This will only become certain once at least a draft of the law is on the table; and that could still take months.
Another factor that could alleviate some of the pressure to renovate heating systems as demanded by the EU is the statement that energy efficiency assessments should be harmonized across Europe. The discrepancy between Germany’s requirements and those of neighboring countries is extreme, but the energy efficiency categories form the basis of the EU requirements.
The real reason for the withdrawal of central parts of the Habeck law, however, is not being openly discussed – its implementation in the current form would have catastrophic effects. Firstly, because more than half of Germans live in rental properties, whose rents would further increase due to these provisions, while tenants, due to a lack of housing, would have no way to escape the increasing costs. Secondly, because a significant portion of those who live in self-owned properties do not have the financial means to bear such a renovation. Statistically, owners are overwhelmingly older and it becomes difficult to finance such measures through loans once they reach 60, as German banks are reluctant to lend to older individuals.