Significant progress is being observed in Germany’s transition to renewable heating solutions, according to the German Energy Consultant Association (GIH). While adjustments to the Building Energy Act – often referred to as the “heating law” – are currently underway, the GIH is cautioning against any steps that could reverse this momentum.
Stefan Bolln, chairman of the GIH, noted a noticeable shift away from hybrid systems, which were once frequently adopted as temporary solutions and towards fully electric heat pumps. This trend, he stated, suggests a critical point has been reached despite ongoing political uncertainties. In states such as Hamburg and Schleswig-Holstein, existing regulations increasingly restrict the replacement of fossil-fuel based heating systems, making the implementation of the Building Energy Act appear somewhat restrictive.
Acceptance of renewable heating technologies is growing, bolstered by the stabilization of heat pump prices, increased experience among skilled tradespeople and a developing competitive landscape driving efficiency.
Economic Minister Katherina Reiche (CDU) is presently reviewing the Building Energy Act, with initial proposals expected in the autumn. The GIH stressed the importance of maintaining existing provisions which mandate that new heating systems operate with at least 65% renewable energy. This regulation, the GIH argues, is a fundamental element of the energy transition and should not be weakened.
The current wording allows for a range of technologies, including biomass, solar thermal energy, district heating and hybrid systems, in addition to heat pumps. The GIH warns that further liberalization could inadvertently pave the way for a resurgence in fossil fuel use, representing a setback for climate policy.
Furthermore, the GIH is advocating for adjustments to funding mechanisms to more effectively support building renovations. Specifically, it proposes increasing the base funding for energy efficiency measures from the current 15% and extending income-based bonuses to encompass broader efficiency improvements, such as insulation and comprehensive energy upgrades. The association believes that buildings still utilizing fossil fuel heating systems alongside climate-friendly alternatives should receive reduced funding.
The GIH believes that the necessary investment – estimated at considerably less than one billion Euros annually – would represent a worthwhile investment, stimulating the skilled trades sector, enhancing the energy performance of existing buildings and ultimately generating revenue for the government through increased business and value-added tax.