German Heating Law (GEG) 2026: New Rules and What Changes Now
Germany's parliament passed the Building Modernization Act on July 10, 2026. The 65% renewables rule is going. Until the new law is published, the old rules still apply - and a subsidy deadline is coming up on July 21.
Germany's heating law (Gebäudeenergiegesetz, GEG) is being rewritten. On July 10, 2026 the Bundestag passed the Building Modernization Act (Gebäudemodernisierungsgesetz, GModG), and the Bundesrat approved it the same day. The blanket rule that new heating systems must run on 65% renewable energy will disappear, along with the boiler replacement duty and the 2044 end date for fossil heating. One catch: the law has not been published in the Federal Law Gazette yet, so the old rules still apply for now. Here is what that means if you own or rent a home in Germany.
Key Takeaways
- 1.New law passed: the GModG cleared both chambers on July 10, 2026. Its heating rules take effect once the law is officially published - expected in August 2026.
- 2.65% rule scrapped: owners will be free to choose their heating technology. New fossil systems will need a rising share of climate-friendly fuels from 2029 (10%) to 2040 (60%).
- 3.No forced replacement: the duty to replace 30-year-old boilers goes, and so does the ban on running fossil heating after 2044.
- 4.Subsidies drop after July 21, 2026: until then, up to 70% of costs are covered (cap: 30,000 euros). Afterwards the speed bonus falls to 16%, the efficiency bonus is cut and the cap drops to 28,000 euros.
- 5.Until publication, the old GEG applies: 65% rule in new development areas, heat-planning deadlines for existing buildings, and 5-to-10-year transition periods if your heating dies.
What the new law changes
The coalition government promised to make the heating law "more technology-open, flexible and simpler". The GModG delivers three big cuts:
Free choice of heating technology
The 65% renewables requirement disappears. Heat pump, district heating, biomass, hybrid system - or a new gas or oil boiler: the choice is yours again.
Green-fuel quota instead
New fossil heating systems will have to burn a growing share of climate-friendly fuels such as biogas: 10% from 2029, 15% from 2030, 30% from 2035 and 60% from 2040.
No replacement duty, no 2044 cutoff
The obligation to replace constant-temperature boilers older than 30 years is deleted, and fossil heating systems may run beyond 2044.
The government has stressed that state support for heating replacement continues. The conditions change on July 21, 2026, though.
What applies until the new law takes effect
New development areas
New builds in designated new development areas still need heating that runs on at least 65% renewable energy - a rule in force since January 2024.
Existing buildings
Here the 65% rule only kicks in after municipal heat-planning milestones. Cities over 100,000 residents had to publish heat plans by June 30, 2026; smaller municipalities have until June 30, 2028.
Existing heating systems
Working systems may keep running and be repaired. Only constant-temperature boilers older than 30 years must currently be replaced; condensing boilers are exempt.
If you rent
The duties fall on the building owner, not you. German tenancy law caps how much modernization cost can be passed on to the rent, and the GModG adds tenant protections. Check any heating-related rent increase against those limits.
Subsidies: apply before July 21, 2026 for the better rates
Germany funds heating replacement through the KfW development bank (program 458). The conditions worsen for applications from July 21, 2026:
| Component | Until July 20, 2026 | From July 21, 2026 |
|---|---|---|
| Base subsidy | 30% | 30% |
| Speed bonus (replacing oil/gas/coal) | 20% | 16%, falling further in steps |
| Income bonus | 30% (taxable income up to 40,000 euros) | Tiered: 40% up to 30,000, 30% up to 40,000, 10% up to 50,000 euros |
| Efficiency bonus | 5% | Scrapped |
| Eligible costs (single-family home) | 30,000 euros | 28,000 euros |
The total subsidy is capped at 70% even if the components add up to more. As of July 12, 2026; application details on kfw.de.
You can combine the grant with a loan for the remaining share. Our guides on the heat pump loan and subsidy, KfW loans and funding programs and the renovation loan without a land-register entry walk you through the options in English.
Heating broke down? Take a breath first
A common misunderstanding: a broken boiler does not force you into a heat pump. Repairs are always allowed. If the system is beyond repair, the current GEG grants transition periods - usually 5 years for an interim solution, up to 10 years if you sign up for a district-heating connection. Once the GModG is in force, these special rules disappear together with the 65% requirement they belong to.
Use that time to compare total costs over 15 to 20 years: purchase price minus subsidy, plus energy costs and the rising CO2 price on gas and heating oil. Your municipality's heat plan tells you whether district heating will reach your street.
Frequently asked questions
Is Germany abolishing its heating law?
The law itself stays, but its core rules are being replaced. On July 10, 2026 the Bundestag and Bundesrat passed the Building Modernization Act (GModG). It removes the blanket 65% renewable-energy requirement, the replacement duty for boilers older than 30 years, and the 2044 end date for fossil heating. The new rules apply once the law is published in the Federal Law Gazette, expected in August 2026.
Do I have to replace my gas heating in 2026?
Almost certainly not. Working gas and oil heating systems may keep running and may be repaired. Under the current GEG, only constant-temperature boilers older than 30 years must be replaced, and low-temperature and condensing boilers are exempt. The GModG removes even that duty.
What happens if my heating breaks down beyond repair?
Repairs are always allowed. If the system cannot be fixed, the current GEG gives you transition periods: usually 5 years for an interim solution, and up to 10 years if you sign a contract for a district-heating connection. You are not forced to install a heat pump overnight.
How high are heating subsidies in Germany in 2026?
Until July 20, 2026 the KfW program 458 pays up to 70% of eligible costs: a 30% base subsidy, a 20% speed bonus for replacing oil, gas or coal heating, a 30% income bonus (taxable income up to 40,000 euros) and a 5% efficiency bonus. From July 21, 2026 the speed bonus drops to 16%, the efficiency bonus is scrapped and the cost cap falls from 30,000 to 28,000 euros.
I rent my apartment - does the heating law affect me?
Only indirectly. The obligations apply to building owners, not tenants. German law limits how much of a modernization cost a landlord may pass on to rent, and the GModG includes tenant-protection rules. If your landlord replaces the heating, check any rent increase carefully against those caps.
Is a heat pump still worth it in Germany in 2026?
The subsidy window is the key argument: up to 70% support until July 20, 2026, noticeably less afterwards. Rising CO2 prices keep pushing up gas and oil costs, so the economics of a heat pump improve every year even without the legal pressure the old law created.
Cut your energy costs
Whatever your heating runs on: switching electricity or gas provider often saves several hundred euros a year.
Financing a new heating system
Secure the subsidy, finance the rest smartly: our English-language guide explains how KfW grants and loans work together.
Read the financing guide