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Germany’s Heating Law – What it means for heating appliances

Introduced in February, the current German government’s proposal to recalibrate the heating law marks a significant shift in approach. Most notably, the strict renewable requirement is being relaxed, and the installation of oil and gas heating systems remains possible under certain conditions.

When the German government first introduced its revised GEG in 2023, it set out a clear and ambitious direction: newly installed heating systems should run on at least sixty-five percent renewable energy from 2024 onwards. This requirement, initially focused on new buildings and gradually extending to existing ones, was designed to accelerate the shift away from fossil fuels and align the building sector with Germany’s climate neutrality target.

However, the policy quickly became one of the most contentious reforms in recent German political history. Critics raised concerns over costs, technological feasibility, and the burden on homeowners, while supporters argued it was essential to decarbonise a sector that has consistently missed emissions targets.

Fast forward to today, and the narrative has shifted. The current German government has proposed a significant recalibration of the law. Most notably, the strict renewable requirement is being relaxed, and the installation of oil and gas heating systems remains possible under certain conditions.

The revised approach shifts responsibility towards fuel suppliers. A gradual “green fuel quota” is expected to require increasing shares of renewable or low-carbon fuels – such as biofuels, biomethane, or hydrogen – in heating energy in the coming years.

This marks a fundamental change in policy design: from a technology-driven mandate to a fuel-based decarbonisation pathway.

For the heating appliance sector, the consequences are profound.

First, technology neutrality is back on the table.  The revised approach reopens the market to a broader mix of systems, including liquid fuel-based boilers capable of running on renewable fuels.

Second, hybridisation gains relevance. The GEG already recognises hybrid systems – for example, combining a heat pump with a liquid or gaseous fuel boiler – as a pathway to meet renewable targets. With the policy shift, such systems could play a bridging role, balancing emissions reductions with affordability and system reliability.

Third, future-proofing becomes critical. Even where fossil-based appliances can still be installed, the long-term trajectory remains clear: the building sector is expected to be climate-neutral in the coming decades. This means that appliances entering the market today must be compatible with the increasing share of renewable fuels over their lifetimes.

For Eurofuel members, including En2x, the evolving German framework reinforces the strategic importance of renewable liquid fuels. The shift towards a fuel quota creates space for solutions such as HVO and other bio-based or synthetic fuels to contribute to decarbonisation without requiring a complete overhaul of existing heating systems.

Looking ahead, for Eurofuel and its members, the message is clear: Renewable liquid fuels, compatible appliances, and hybrid solutions will all play a role in delivering a realistic and socially acceptable transition.