Heating Law Germany – Rolls Back allows New Gas and Oil Boilers Again

Germany’s Bundestag and Bundesrat have passed a new law that undoes one of the previous government’s most controversial climate rules. The Gebäudemodernisierungsgesetz (Building Modernisation Act), approved on 10 July 2026, allows new gas and oil heating systems to be installed again — something the old rules had effectively ruled out.

What the old law required

The previous, so-called “Ampel” coalition government (SPD, Greens and FDP) had passed a heating law requiring new systems to run on at least 65% renewable energy. In practice, that made it almost impossible to install a new gas or oil boiler. The new government argues that Germany’s climate targets can still be met if conventional boilers are gradually switched to biomethane, bio-gas, bio-oil or hydrogen instead.

The “bio-staircase”: a rising fuel quota

Under the new law, homeowners can still choose a heat pump, a district heating connection, a hybrid system or a biomass heater. But new gas and oil boilers remain an option too — as long as they run on an increasing share of CO2-neutral fuel, starting 1 January 2029. The government calls this the “Bio-Treppe” (bio staircase):

• At least 10% climate-friendly fuel from January 2029
• At least 15% from January 2030
• At least 30% from January 2035
• At least 60% from January 2040

For heating systems already installed, a separate “green gas quota” (Grüngasquote) takes effect from 2028, starting at up to 1%. The government has not yet specified further details of how this quota will work.

Landlords must share the cost

Because climate-neutral fuels are expected to cost more, landlords who choose to keep using gas or oil heating will in future have to contribute to the ongoing heating costs. Several industry associations have nonetheless warned that tenants could still face higher bills in the long run, pointing to rising CO2 prices and gas network fees (Gasnetzentgelte).

Sharp political and legal criticism

Reactions split along familiar lines. Union parliamentary group deputy leader Sepp Müller welcomed the change, saying people have “freedom in the boiler room” again: “We are replacing paternalism with freedom of choice.” Green party parliamentary group leader Katharina Dröge called the reform “an accelerant for the climate crisis,” saying it was “completely oblivious to the future” for the coalition to rely again on climate-damaging oil and gas heating.

Environmental groups have gone further. Deutsche Umwelthilfe says the law contradicts Germany’s own legal climate targets and has announced a constitutional complaint (Verfassungsbeschwerde). Tina Löffelsend, a climate expert at BUND, said this summer’s heatwaves were “a further wake-up call for more climate protection,” but that the government’s law was instead fuelling the climate crisis. Critics single out two points: that the bio-staircase only reaches a 60% renewable share for new systems by 2040, and that the costs and availability of “green” gases for the green gas quota remain unknown.

What it means for people living in Germany

If you’re planning to buy a home, renovate, or negotiate with a landlord, the pressure to install a heat pump immediately has eased. Gas and oil boilers remain a legal option, though from 2029 new installations must increasingly run on climate-neutral fuel — a cost worth asking about before you commit to a system. Tenants whose landlord installs a new gas or oil boiler should note that landlords are now required to help cover the ongoing heating costs, which may be reflected in service charge statements (Nebenkostenabrechnung). Given the warnings about rising CO2 prices and network fees, it’s worth comparing the long-term running costs of a heat pump against a fossil-fuel system before deciding, especially for anyone signing a long lease or buying property.