Overview

• The government will eliminate the gas storage levy for end users, financing its €3.4 billion cost through the Climate and Transformation Fund starting January 1, 2026.
• Subsidies covering 30–70% of heat pump installation costs have helped drive 139,500 sales in the first half of 2025, surpassing the 132,500 gas boilers sold in the same period.
• Projected CO2 prices of €60–€300 per ton under the EU emissions trading system launching in 2027 could add roughly €400 per year to gas heating and around €900 per year to oil systems if prices hit €100 per ton.
• The German Mieterbund reports that district heating costs are set to rise by 27% for tenants compared to a 7% increase for gas customers and is demanding additional relief measures.
• Consumer advocates warn that forthcoming revisions to the building energy law and rising network and CO2 charges are creating a complex cost landscape that may require further tenant protections.