Overview
- An unpublished analysis from the Institut der Deutschen Wirtschaft that surfaced Friday warns annual heating costs for newly installed gas boilers could almost double by 2040, a result reported by multiple outlets.
- The IW study says heat pumps would keep heating costs largely stable and could save around €1,000 or more per year in partly renovated older apartments compared with gas systems.
- The new heating law, now in force, removes the prior 65% renewables installation rule, allows new gas and oil boilers to be fitted and requires providers to start using rising shares of CO₂‑neutral fuels from 1 January 2029 with a goal of 100% green fuels by 2045.
- The government redesigned subsidies that lower the eligible cost cap and cut some heat‑pump support rates, and the KfW has closed its portal for the old terms with a July 20 deadline for a 'Bestätigung zum Antrag' to retain those conditions, creating urgent choices for owners and landlords.
- IW researchers and other commentators warn the mix of law changes, weaker subsidies and uncertain availability of green gases could push households into short‑term permissible but long‑term uneconomic investments and has already prompted threats of legal challenges.