The proposed reform of the Heating Law aims to introduce a “cost brake” measure for tenants, mandating that landlords must bear a portion of heating costs under certain circumstances. According to Justice Minister Stefanie Hubig (SPD), while landlords will retain a degree of choice when installing a new heating system, they will be required to contribute to the running heating costs if the new system utilizes energy sourced from fossil fuels.
In such scenarios, landlords would reportedly be responsible for sharing the costs of the grid fees, the CO2 price, and biogenic fuel costs. Hubig stated that “who ever decides on the heating system also bears the economic consequences”.
Furthermore, when oil or gas heating is replaced in existing residential buildings, a four-stage “bio-stepping” scheme is planned to take effect starting in 2029. This means that the degree of required admixture of biomethane, biooil, biogenic liquid gas, or hydrogen will increase gradually. For the first three stages, both tenants and landlords are expected to split the costs for these bio-fuels equally. This regulation will also apply to buildings occupied for the first time by the end of 2029.
To accurately determine the share of biogenic fuels, a reliable information obligation for utility providers regarding their customers is also planned. This measure is intended to prevent biogenic fuels from being “cross-subsidized” thereby ensuring that the portion to be borne by the landlord is not understated.
Costly factors such as carbon dioxide costs and gas grid fees are scheduled to be split equally between the tenant and the landlord starting in 2028.
For tenants residing in non-residential buildings, measures will be taken to ensure they are “protected at a comparable level”. During the parliamentary process, a practical regulation will be developed to account for the varying situations in non-residential properties and to maintain a clear boundary between fuel consumption for residential and commercial purposes.
Buildings constructed for residential use whose applications were submitted before the Cabinet meeting will retain existing protections. The new rules concerning their distribution effect are set to be evaluated in 2036.
Tenants who are self-sufficient, such as those living in single-family homes or using gas-powered floor heating, are also anticipated to receive reimbursement from the landlord equal to the extent of the landlord’s cost-bearing obligations. Additionally, a hardship clause for older buildings with low local rents is planned to be elaborated in the parliamentary process.
