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Germany's heating law reform shifts costs from tenants to landlords

Landlords now face higher heating costs under Germany's reform, while tenants gain financial relief. A controversial shift away from strict renewable energy rules sparks debate.

The image shows a graph depicting the electricity generation from wind and solar in Germany. The...
The image shows a graph depicting the electricity generation from wind and solar in Germany. The graph is accompanied by text that provides further information about the data.

Germany's heating law reform shifts costs from tenants to landlords

In the planned reform of Germany's heating law, the governing coalition has agreed on a cost cap to protect tenants. Landlords will now be required to contribute to ongoing heating expenses if they opt for a new fossil-fuel heating system, according to a draft of the Building Energy Modernization Act obtained by the Protestant Press Service (epd).

"Landlords have the freedom to choose when installing a new heating system, but this freedom must not come at the expense of tenants," Justice Minister Stefanie Hubig (SPD) stated on Thursday. She emphasized that heating costs must not become a financial trap for renters.

Under the draft legislation, landlords will be obligated to cover half of the grid fees, CO₂ pricing, and costs for biofuels. Hubig described the measure as a "fair solution" that sets the right incentives. "Whoever decides on the heating system must also bear the economic consequences," she said.

Earlier key points agreed upon by the center-left coalition for the reform include eliminating the requirement for at least 65 percent renewable energy in heating systems for new buildings. Instead, new oil and gas heaters will be mandated to use an increasing share of biogas or synthetic fuels.

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