Heating law (Building Energy Act, GEG)

The Gebäudeenergiegesetz (GEG, Building Energy Act) – colloquially the "heating law" – sets out the energy requirements for buildings and heating systems in Germany.

The core rule (since 01.01.2024):

Every NEWLY installed heating system must run on at least 65% renewable energy.

What meets the 65% requirement?

• Heat pump (air, ground, water)
• District heating (where available)
• Hybrid heating: heat pump + gas/oil peak-load boiler
• Solar thermal (in combination)
• Biomass (wood pellets, wood chips)
• Direct electric heating (in well-insulated buildings)

Timetable:

• Immediately (since 2024): applies to new development areas
• Large cities (100,000 inhabitants): from 30.06.2026
• Smaller municipalities: from 30.06.2028
• Existing heating systems: may keep running until the end of their natural life. If faulty: repair is allowed
• By 2045 at the latest: no more fossil heating systems

Subsidies (BEG):

• Basic subsidy: 30% of costs
• Income bonus: +30% (household income €40,000/year)
• Climate speed bonus: +20% (until 2028, then decreasing)
• Maximum: 70% subsidy, max. €30,000 eligible costs (detached house)

Sample calculation heat pump:

Cost: €30,000. Subsidy 70% = €21,000 grant. Own contribution: €9,000