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Germany’s Coalition Splits Over Heating Law as Parties Clash on Subsidies and Scope

The dispute now points to a forthcoming GEG amendment as leaders stake out opposing positions on keeping core rules and cutting support.

Overview

  • Environment Minister Carsten Schneider said the building energy law would remain in principle and pledged socially graded grants, citing €12 billion in funding and up to 70% support for low-income households.
  • CSU leader Markus Söder insisted the heating law be abolished and labeled current heat‑pump incentives an over‑subsidization that should be massively reduced.
  • The coalition agreement uses the term abolish but is reported to mean a reform that makes requirements more technology‑open, flexible and simpler while continuing renovation and heating aid.
  • Schneider pointed to market data showing heat‑pump installations have recently exceeded gas boiler sales, arguing incentives are working.
  • No legislative change has been passed, leaving the issue to coalition negotiations and a planned amendment to the building energy law.