The federal cabinet approved the controversial plans to replace the heating system on Wednesday. Economics and climate protection minister Robert Habeck (Greens) and building minister Klara Geywitz (SPD) assessed the relevant draft law as a big step. Chancellor Olaf Scholz (SPD) wrote on Twitter: “The entry into the future of heating is done.” A new subsidy system is also planned, which will provide a “climate bonus” under certain conditions. The FDP called for improvements on the day of the adoption. Sharp criticism came from the opposition and real estate associations.

From 2024 onwards, if possible, every newly installed heating system should be operated with 65 percent renewable energies. This is intended to herald the departure from gas and oil heating systems. “Without a quick change of course in the area of ​​building heating, Germany can neither achieve the climate goals nor quickly reduce the dependence on fossil raw materials,” says the draft law.

There is no immediate obligation to replace heating systems in existing buildings. If a device breaks down and can no longer be repaired, there are transitional periods. By 2045 at the latest, all heating systems should no longer be operated with fossil fuels but only with renewable energies.

In Berlin, Geywitz spoke of the “entry” into phasing out gas and oil heating. The law will not force people to sell their home because they can’t comply, she said. There are generous transition periods and exceptions.

Habeck spoke of a “thrust reversal”. “We need action.” The heating sector accounts for 30 percent of energy consumption, 80 percent of which comes from fossil fuels. Germany is starting to change course comparatively late, while other countries in Scandinavia, for example, are much further along.

With regard to a planned new subsidy system with “climate bonuses”, Habeck said that the coalition had not agreed on an income test for subsidies. “There is no difference between average earners and villa owners.”

For people who receive social transfers, however, the obligation that from 2024 onwards every newly installed heating system should be operated with 65 percent renewable energies should no longer apply. They should also have a greater right to state subsidies if they want to replace their heating system.

The financing of the new funding program via the federal climate and transformation fund is secured. The existing funding volume will be increased. In the fund, a special fund of the federal government, more than 9 billion euros per year have so far been budgeted for the promotion of energy efficiency measures in buildings.

In the past, Habeck had emphasized the importance of social differentiation in promoting heating exchange. He said in March that young families who have little money and pensioners who have a tight pension must be supported differently than the “millionaire who already has three villas”.

Habeck and Geywitz made it clear that, despite currently higher investment costs for more climate-friendly heating systems, a switch will be worthwhile in the long term. Due to the extension of the EU emissions trading system to the building sector, the operation of gas and oil heating will be much more expensive in the next few years. Geywitz also said that she assumes that the prices for heat pumps will fall significantly in the coming years given the subsidy.

The FDP, meanwhile, sees a considerable need for improvement in the draft law. In a protocol statement on the cabinet decision, Finance Minister and FDP leader Christian Lindner called for a “practicable and affordable” implementation of the principle of openness to technology. Lindner presented the protocol statement on behalf of the FDP ministers, as it was said.

The statement states that the Ministry of Finance agrees to the draft law “in the knowledge” that the parliamentary groups in the Bundestag will discuss the draft intensively in the parliamentary process and will also make “other necessary changes”. Concerns with regard to the financing and feasibility of the measures should be taken into account in order to burden the citizens as little as possible. Appropriate transitional periods must be observed, especially when expanding heating networks and with the future technology of hydrogen.

The Union accused the traffic light coalition of SPD, Greens and FDP of a heat transition with the “crowbar”. Group Vice-Chairman Jens Spahn (CDU) said that homeowners and tenants would face major costs. The exact financial support is unclear. In addition, no one can say where the craftsmen for the installation of climate-friendly heating systems should come from. The CDU energy expert Andreas Jung said that the draft law is open to technology. In truth, there is a bias in favor of the heat pump. Requirements for hydrogen-powered gas heaters are too high.

The President of the House Owners’ Association

In contrast, the Greens co-chairman Ricarda Lang spoke of a good day for the country and a good day for the climate. Heating will be renewable in the future. “We are also making ourselves independent of fossil fuels there. Greenpeace energy expert Andree Böhling said the law is a milestone for climate protection in Germany. “For 41 million households, most of which still heat with oil and gas, there is now one clear direction for a socially acceptable way to more climate-friendly heating.”