(de-news.net) – Although the reform process is unfolding under considerable time pressure, Germany’s Federal Ministry for Economic Affairs continues to pursue an accelerated revision of the Building Energy Act (GEG) and has reiterated its confidence that the process can nevertheless be completed within the prescribed timeframe. According to the ministry, the compressed schedule has been set deliberately and is intended to reflect both sustained political attention and the perceived urgency of addressing unresolved regulatory and implementation challenges within the existing framework. At the same time, the government has underscored its intention to advance the reform in close coordination with the Bundestag and the relevant parliamentary groups through the standard legislative procedure, while consciously avoiding public discussion of contingency arrangements should the timetable ultimately prove unattainable.
This sense of urgency is driven primarily by a binding legal deadline. If a revised legal framework does not enter into force by July 1, 2026, the current provision mandating that newly installed heating systems in cities with more than 100,000 inhabitants operate with a minimum share of 65 percent climate-neutral energy will apply automatically. Observers emphasize that this requirement, introduced under the previous governing coalition, remains politically sensitive and continues to divide opinion. Within the current coalition, the Social Democratic Party is reportedly resisting its abolition, while the length and complexity of the parliamentary process itself are widely viewed as posing a substantial obstacle. As a result, experts increasingly question whether the legislative process can realistically be concluded by the statutory deadline.
Against this backdrop, the Green Party has warned against sweeping revisions to the existing heating regulations. From its perspective, eliminating the 65-percent threshold would deepen reliance on fossil fuels and expose homeowners to escalating long-term costs, particularly in the context of rising gas network fees. Proponents of this view argue that the heating sector is already structurally prepared for a broad-based modernization effort, noting that both manufacturers and skilled trades have aligned their planning and investment decisions with the current legal framework and the broader policy objective of reducing dependence on imported energy sources.
Heat pump boom highlights urgency for clarity
Industry associations have echoed these concerns by calling on the federal government to deliver regulatory clarity without further delay. Representatives of the heat pump industry have highlighted that heat pumps emerged as the most widely sold heating technology in 2025, interpreting this trend as evidence that consumers, companies, and craft businesses have largely adapted to the requirements of the existing legislation. From their perspective, the building sector offers substantial potential for domestic value creation and sustained economic growth, provided that the regulatory environment remains stable, predictable, and functionally coherent.
Under the coalition agreement between the Christian Democrats and the Social Democrats, the GEG is slated to be repealed and replaced by a new Building Modernization Act. Central to the ongoing dispute is whether the successor legislation should retain the requirement that 65 percent of heating energy be sourced from renewable energy. Negotiations between the parliamentary leaderships of the coalition partners are reported to have stalled, and a policy outline that had initially been expected earlier has now been postponed until early February, further heightening uncertainty about the legislative timetable.
In light of these delays, municipal and housing associations have cautioned that failure to resolve the impasse could result in a form of regulatory default. Property owner representatives stress that the legislative process would need to be completed well in advance of July 2026 to minimize the risk of legal challenges and to ensure compliance with constitutional standards, a schedule they increasingly regard as unrealistic. They warn that, if the deadline is missed, many households would effectively be compelled to install heat pumps or costly hybrid heating systems, a scenario they associate with adverse social and economic consequences. Municipal utilities, by contrast, have focused on the broader implications for implementation, arguing that repeated and substantial shifts in policy frameworks undermine planning and execution. They have therefore called for a swift political compromise to restore planning certainty for households, businesses, and local governments alike.
