Overview
- The Union–SPD government let its end‑January target slip without presenting principles for the planned Gebäudemodernisierungsgesetz, with only a rebranding of the existing law agreed so far.
- Environment Minister Carsten Schneider says the rule requiring new heating systems to use 65% renewable energy will remain and he plans subsidies geared more strongly to lower‑income households.
- Heating manufacturers report just 627,000 units sold last year, down 12% and the weakest since 2010, and the BDH warns ongoing uncertainty could force layoffs or short‑time work.
- Heat pumps continued to grow, with roughly 299,000 installations in 2025—up 55%—and, for the first time, outpacing gas boilers.
- The renovation rate fell to about 0.67% in 2025 versus roughly 2% seen as necessary, and pressure is rising as the 65% requirement becomes binding in many large cities after June 30, 2026 where heat plans are in place.