Heating Law 2026: Decide now which technology will make your home future-proof
2026 will be a pivotal year: with the introduction of local heating plans, the 65% rule will apply to new heating systems in many towns and cities. Property owners who carry out modernisation work in the coming years will therefore be determining not only their energy costs, but also the future Property value and marketability. As estate agents, we see daily how well-founded technical decisions pay off in property listings, energy performance certificates and buyer negotiations. This guide categorises the options – clearly, factually and practically.
What 2026 means specifically
The Building Energy Act (GEG) generally requires new heating systems to derive at least 65% of their energy from renewable sources. This already applies to new builds in development areas. For existing buildings, the requirement comes into force as soon as your local authority submits its heating plan (in larger cities, this is expected by mid-2026; smaller local authorities will follow by 2028). Please note: timetables and subsidy rates are subject to change – always check the latest decisions.
Technology at a Glance: Which Solution Fits Which Home?
- Air/water heat pumpUniversally applicable, particularly effective in renovated older buildings and new builds with low flow temperatures (ideally ≤ 50–55 °C). Advantage: quick installation, good performance. Pay attention to sound insulation and installation location.
- Ground source heat pump (geothermal energy)Highest efficiency year-round, quiet, stable. Requires a borehole or ground collector; permits may be required depending on location. Ideal if plot conditions are suitable and low long-term running costs are desired.
- District heatingFuture-proof if a grid exists or is planned. Check: connection costs, basic charges, contractual commitment, primary energy factor and decarbonisation roadmap of the supplier.
- EE-Hybrid (e.g. heat pump plus peak-load boiler): Can meet the 65% requirement if the annual renewable contribution is demonstrated. Technically sensible for existing buildings with peak load on very cold days. Important: Clarify accounting and documentation early on.
- Biomass/PelletsComplies with EE requirements, sensible in regions with secure fuel logistics. Note: Space requirements for storage, particulate matter, price volatility.
- Electric direct heatingOnly makes sense in very well-insulated buildings (passive house standard) or as a temporary/peak load solution, as otherwise high operating costs are to be expected.
Three quick checks before choosing technology
- Determine flow temperature: Can your heating surfaces achieve a room temperature of 20–22 °C with a flow temperature of ≤ 50–55 °C on a cold day? If not: enlarge radiators or plan for underfloor heating. This is the efficiency lever for heat pumps.
- Understand heating load: Let the heating load be calculated according to DIN EN 12831. This determines the equipment size and prevents short-cycling and incorrect sizing.
- Hot water and sound: Clarify storage requirements (showering behaviour, bath, circulation). For air source heat pumps, consider soundproofing of the installation location (limits on neighbouring property).
Brief calculation example (assumption, for guidance):
Detached house (EFH), 140 m², heating demand 16,000 kWh/year. Electricity price €0.35/kWh, gas price €0.12/kWh. An air source heat pump with a Coefficient of Performance (COP) of 3.0 generates 1 kWh of heat for approx. €0.12. Gas delivers 1 kWh of heat for approx. €0.12 plus standing charges/CO₂ costs. Even with a COP of 3.2 and prospectively rising CO₂ costs, the calculation favours the heat pump. Initial investments are put into perspective by subsidies and lower maintenance costs. Please check your figures individually.
Make clever use of funding
The state support for heating modernisation and efficiency measures is attractive, but dynamic. Typical: Grants for heating replacement (e.g. heat pump) and bonuses for efficiency/speed of heating replacement, in addition to low-interest loans for renovation packages (BEG/KfW). Important:
- Application for funding before commissioning otherwise the subsidy will be forfeited.
- Heating technology with Remediation plan Combine (insulation, windows, hydraulic balancing). Lower flow temperatures increase the seasonal performance factor and thus the cost-effectiveness.
- Offers with Full cost Compare: Appliance, installation, ancillary works, electricity/gas standing charges, maintenance, insurance.
Typical mistakes - and how to avoid them
- Only look at the device price: Solution: Calculate life cycle costs (10–15 years), including energy prices and CO₂ costs.
- No heating load calculation Solution: Commission a standards-compliant calculation; suitable dimension prevents intermittent operation and noise.
- Ignore flow temperature Solution: Optimise heating surfaces; small measures (larger radiator, hydraulic balancing) achieve a lot.
- Noiseproofing forgotten: Solution: Plan installation location, soundproofing hoods, maintain distances to neighbours.
- Disconnecting district heating remotely: Solution: Check contract duration, price escalation clauses, decarbonisation plan and primary energy factor.
Value and Marketing: What buyers can expect in 2026+
Potential buyers are specifically asking about Energy efficiency, running costs and the risk of retrofitting obligations. A heating system that reliably meets the 2026 Heating Act requirements (e.g., heat pump or reliable district heating) strengthens your position in sales negotiations, improves the energy performance certificate, and shortens marketing times. Conversely, unclear technical pathways or „temporary solutions“ without proof of the renewable energy share lead to price reductions or longer checks by buyer banks.
For property owners, the rental perspective is also important: low ancillary costs strengthen rental potential, while uncertain heating solutions and rising CO₂ costs limit negotiation margins in favour of tenants. Those who modernise with a plan now control the timeline – not the other way around.
This is how you approach it pragmatically
- Check location Is there district heating today, or is it foreseeable according to the heat plan? If so: compare cost-effectiveness against a heat pump.
- Making buildings fit for purpose: Insulation, windows, hydraulic balancing – small steps lower the required flow temperature.
- Compare offers At least three, each with binding heating load, sound forecast, full costs and funding advice.
- Secure documentation: For 65% certification, energy performance certificate, bank documents and subsequent sale.
Conclusion and next step: Those looking to 2026 will gain planning certainty, lower operating costs and stronger sales prospects. We will examine buildings, technical pathways and marketing impact with you – impartially and with a focus on your goals. Arrange an initial consultation now and determine the appropriate heating strategy for your property.
