Ban on new oil and gas heating systems softened: Who benefits from the traffic light compromise – and who doesn’t

In many cases, apartments and houses in Germany can still be heated with oil and gas in the future.

After fierce protests from consumer advocates and the housing industry, the traffic light agreed on a large number of exceptions and special regulations for the plan to only allow new heating systems from 2024 that are fed with at least 65 percent renewable energies.

Even under the original draft law, no one was forced to rip a working system out of their home. If a heating system that cannot be repaired fails, generous funding rules should apply.

In general, according to the compromise found in the traffic light coalition on Friday, the wording remains that from 2024 only new systems may be installed that are operated with at least 65 percent renewable energies.

However, the SPD, Greens and FDP provide exceptions for homeowners who do not have the money to install a heat pump, for example. Seniors over the age of 80 are also exempt from having their old building renovated.

Longer transition periods of up to ten years apply if an old gas or oil heating system fails. So far, the draft of the “Building Energy Act” (GEG) provided for shorter deadlines, graded according to the age of the system and the CO₂ emitted by it.

Wood stove improves the CO₂ balance

There are also a large number of exceptions, according to the Federal Ministry of Finance. For example, if you have a stove in your house or a wood-burning stove, your heat output will be “counted” positively towards the CO₂ balance of your house. Also, a gas boiler that is more than 30 years old does not necessarily have to be replaced. Instead, it can continue to operate as part of a “hybrid” system. The other part of the heat should then come from a heat pump or from solar collectors on the roof to produce hot water.

This “technology openness” in the revised law allows for a variety of options for providing heat. The draft law already provided for consumers to be able to be connected to existing municipal heating networks instead of converting the gas heating system to their own heat pump. The transfer station for district heating is more expensive than a modern gas-powered system. Compared to the conversion to a heat pump, however, the additional investments in insulation and radiators that are often required here are no longer necessary.

In addition, the traffic light compromise now provides for “district concepts”. This could benefit housing companies in metropolitan areas that are developing a common heat supply system for their homes. Landlords who do not want to invest themselves can hire a commercial provider to supply the heat. It is not yet known how the CO₂ balance of this “contracting” is controlled.

biomass and hydrogen

A “heating system for the use of biomass or green or blue hydrogen” is mentioned as a further alternative to heat pumps in circles of the Ministry of Finance. Hydrogen is for the housing industry what “e-fuel” is for the car industry – more of a dream of the future. Hydrogen can be distributed via the existing gas networks and also mixed with the gas.

In this way, it reduces the CO₂ balance of the fossil fuel that is burned. The large manufacturers of thermal baths have developed systems that are running in field trials. These “H2ready” condensing boilers can be operated with natural gas or mixtures of natural gas and hydrogen, and can be converted to operate with pure hydrogen.

Experts had already warned of the relaxation of the ban and the extension of the deadlines, saying that the decision to phase out fossil fuels for heat supply had already been made. In addition, rising gas and oil prices are to be expected. The expensive supply could eat up the advantage of lower investments in dying heating technology.

In addition, the more industry ramps up production of the new heating technologies, the more the prices for hybrid heating systems, heat pumps, solar and biotechnologies will fall. The new regulations now make it possible to wait for the optimal time for this, it is said.

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