When Maike Biert was in the process of selecting a heating system for her house in western Germany, she was discouraged by the high cost associated with installing a heat pump. As a result, she decided to go for a gas boiler instead. However, future options may not be as straightforward due to an upcoming climate legislation proposed by the government. While environmentalists support the legislation, concerns have been raised about the potential financial burden on homeowners. Under the new rules, heating systems will be required to derive at least 65 percent of their energy from renewable sources, effectively prohibiting the installation of new oil and gas boilers. The plan faced controversy within the ruling coalition and was eventually introduced in parliament on Thursday, albeit in a diluted form. Nevertheless, the political turmoil surrounding the legislation and the lack of clear details have left homeowners feeling apprehensive.
” In principle, I am in favour of saving energy,” said Biert, a 46-year-old resident of Koenigswinter in the state of North Rhine-Westphalia.
She expressed concerns by saying, “The problem is simply that you cannot and should not overburden people with this.”
Last year, when Biert was considering a new heating system, she explored the option of installing a heat pump, which was promoted as being more environmentally friendly. However, this would have required significant renovations to her house. She also considered “hybrid solutions”, combining a heat pump with gas. The estimated cost for such alternatives ranged from 40,000 to 100,000 euros ($43,000 to $108,000).
For Biert and her family “It would have meant a loan for us, and we did not want that, which led them to opt for a traditional gas boiler instead.
The implementation of the new rules has caused a major crisis within the government, as the Green party supported the legislation while their business-oriented coalition partners, the FDP, strongly opposed it. The details of the legislation still remain unclear.
Detractors argue that the substantial costs associated with installing new heating systems will disproportionately affect middle- and low-income households, leading to media outlets dubbing it “the heating hammer.”
Supporters emphasize the availability of various forms of assistance, such as subsidies for heat pumps, and stress the urgency of taking action as the buildings sector accounted for approximately 15 percent of Germany’s carbon dioxide emissions last year. Concerns grew that the coalition and the entire deal could collapse, prompting Chancellor Olaf Scholz to intervene and facilitate emergency negotiations, resulting in a compromise. According to the agreement, which still requires parliamentary approval, the new regulations will only be applicable to existing buildings if there is a municipal heating plan in place for the area. Originally planned for implementation in 2024, the compromise effectively postpones the earliest possible start date for most buildings to 2028. The Green party is now pushing for the legislation to be passed before the parliamentary summer recess, but uncertainties remain. Verena Oerenbas, a political advisor from the Residential Property Association, welcomed the compromise but expressed concerns about the lack of concrete proposals and uncertainty surrounding the government support available to homeowners during the transition to renewable energy.
The protracted dispute has had a detrimental impact on the government and has inadvertently boosted the far-right Alternative for Germany (AfD), which has criticized the legislation. The Green party has suffered significant damage throughout the ordeal, experiencing a decline in popularity among both voters who oppose the law and environmentalists who are dissatisfied with the compromised agreement. Luisa Neubauer, the leader of the German chapter of Fridays for Future, described the diluted deal as “a bad joke” that essentially undermines the law. The Greens’ efforts to promote climate-friendly heating systems were further hindered when reports emerged that the party struggled to install a heat pump in its own Berlin headquarters. Heat pumps, which utilize technology similar to air conditioners or refrigerators, extract warmth from the ground, outside air, or water sources to generate heat. Demand for heat pumps has plummeted this year after a period of significant growth, as consumers awaited the law’s details, including potential increases in subsidies. Bjoern Schreinermacher from Germany’s Heat Pump Association stated “The public debate in recent weeks has caused a great deal of uncertainty among consumers.” Conversely, there has been a “very, very strong demand for oil and gas heating” as individuals rushed to install new systems before an anticipated ban.
