Heat Pump Mandate Scrapped: Germany Reverses Course
The 65% rule is gone. Gas boilers are back. What's changing – explained simply.
Dennis Christopher
Want more details? 📖 Read the full in-depth version.
End of the heating hammer: The Merz government scraps the controversial law.
🇬🇧🇺🇸 Quick Context
Germany's previous government mandated that all new heating systems use 65% renewables – basically forcing everyone to get heat pumps. This was hugely unpopular. The new government just scrapped it.
📌 What Happened
Germany's controversial heating law from the previous government is being abolished. The old law basically said: If you get a new heating system, it has to run mostly on renewable energy. For most people, that meant buying an expensive heat pump.
The new government is reversing this.
🔑 The Key Changes
- The old heating law (GEG) is being abolished
- The "65% renewables rule" no longer applies to existing buildings
- If your gas boiler breaks, you can install a new gas boiler
- Heat pumps are no longer mandatory
🤔 What Was the 65% Rule?
Under the previous government: Any new heating system had to run on at least 65% renewable energy. In practice, this usually meant you had to buy a heat pump.
Heat pumps are expensive (€15,000-30,000 / $16,000-32,000 / £13,000-26,000) and don't work well in every building. Millions of homeowners were furious.
🏠 What Happens Now
If you own a home:
- You don't have to buy a heat pump
- You can replace a broken gas boiler with a new gas boiler
- But: Gas might get more expensive in coming years due to carbon taxes
The choice is back with homeowners: Gas or heat pump?
🌍 What About Climate?
The government says: We won't force people. Instead, we'll make polluting heating more expensive through carbon pricing. Eventually, people will switch voluntarily.
Critics say: That won't work fast enough. Germany will miss its climate targets.
💰 Who Wins, Who Loses
Winners:
- Homeowners who want cheap gas boilers
- Gas boiler manufacturers
Losers:
- Heat pump manufacturers (billions invested for nothing)
- Climate goals
- Possibly: Anyone who installs gas now and pays high carbon taxes later
🔍 The Bottom Line
Germany's heating mandate is dead. Homeowners have choice again. But the real test comes in 10 years – when carbon taxes kick in and those new gas boilers might become very expensive to run.