Germany to ramp up the decarbonisation of Buildings Heating from Jan 1st 2024. How?

(Energy Post, 11 Jul 2023) Decarbonising heating is a major challenge for any country. Germany’s Building Energy Act (GEG) means that from 2024 every newly installed heating system, in new or existing buildings, must operate with a minimum of 65% renewable energy.

Concerns over the costs to customers (installing new and expensive systems, or paying a penalty for fossil heating) has led to intense debates, hence the new law includes a range of subsidies, bonuses, discounted loans, tax deductions, and limited exemptions. And the binding deadline of January 1st 2024 has been relaxed and linked to the pace of the greening of municipal heat supply.

Sebastian Ligewie at Energy Brainpoolsummarises the new law and its provisions, and breaks down the heating sources of residential buildings. Of note is that about 80% of residential buildings in Germany use fossil fuels. Half of heating systems are already over ten years old, so many replacement decisions will happen in this crucial transition decade. And the share of new gas installations dropped between 2015 and 2022 from 52% to 28%, while heat pumps rose to 57%.

Will Germany put an end to oil and gas heating by 2024? Market participants have received the amendment to the Building Energy Act (GEG) with much criticism. It has been the subject of some fierce discussions. Some call it a “heating hammer” that will plunge us into economic ruin. For others, the resolutions do not go far enough. In other words, they demand a tougher stance on climate protection.

On 13 June 2023, after a long internal struggle, the government announced new guidelines for the GEG. These are now the final compromise and are to be adopted on 07.07.2023.

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Energy Post, 11 Jul 2023: Germany to ramp up the decarbonisation of Buildings Heating from Jan 1st 2024. How?