Reduced Subsidies: Further Changes to Heating Regulations 07.07.2026

The SPD-Green-FDP coalition plans a fundamental redesign of heating subsidies to save approximately 2.1 billion euros by 2030. The new Building Modernization Act proposes to gradually reduce current subsidies for heat pumps, while making subsidies more income-dependent. Families with children are to be relieved through special supplements, while the previous climate speed bonus is set to expire. A central aspect is the loosening of the controversial heating law: in the future, gas and oil heating systems are to remain permitted, provided that the share of climate-neutral fuels, such as biomethane, steadily increases. While the Union (CDU/CSU) welcomes this new openness to technology, the Greens criticize the lack of information regarding costs and climate effects. Die Linke has already filed a lawsuit with the Federal Constitutional Court, which is why the coalition wishes to await a court decision before the law is finally passed in the Bundestag.














