Germany, one of the most fossil fuel-dependent countries for heating, has passed a law to ban new fossil fuel heating installations starting in 2024.
The goal is to switch to cleaner heating systems that run on at least 65% renewable energy. This effectively bans gas and oil heaters, leaving only heat pumps, hybrid heat pumps, district heating, and biomass heating as viable alternatives. The government hopes to install 500,000 heat pumps yearly by 2024, up from 200,000 in 2022. However, there is concern that the high cost of heat pumps could put citizens off the switch. The government is offering support for those switching to clean heating, including baseline support of 30% and extra funds for those making the switch five years before their heating system’s lifetime ends.
Hydrogen remains a controversial option for heating, with experts citing its high cost as a major obstacle. Homeowners who want to bet on hydrogen may do so, but only if their gas provider submits a binding plan to supply the home with hydrogen starting in 2030. However, experts are questioning utility companies’ willingness to expose themselves to such legal risk at scale, especially since affordable hydrogen is not yet available. The law recognises fossil-made hydrogen, known as “blue” hydrogen, which is produced with fossil gas where the created carbon is captured and stored. Experts warn that blue hydrogen does more harm than good for the climate.
Germany, the fourth-largest economy in the world and home to leading heat pump producers is lagging behind in adopting the technology. Buildings Minister Klara Geywitz said hydrogen is unnecessary for household heat since other industries can only decarbonise with hydrogen, such as cement. However, for close-to-industrial consumers or large-scale hydrogen production facilities, using it for heat may be feasible.
While the government’s compromise on the law has been adopted, resistance from business-friendly FDP lawmakers looms. Christian Lindner, FDP chief and finance minister, expects necessary changes to be made to address concerns about affordability and implementability.
