THE NEW HEATING ACT: WHAT IT MEANS FOR THE GERMAN HEATING INDUSTRY

THE NEW HEATING ACT: WHAT IT MEANS FOR THE GERMAN HEATING INDUSTRY

According to a report by www.tagesschau.de,

Real estate market expert:

The new heating law, which comes into force in January 2024, has resulted in many homeowners installing gas heating systems before the law comes into force. According to the association, more than 1.1 million devices had been installed by the end of October 2023, which corresponds to an increase of 43 percent compared to the same period last year. The debate surrounding the Building Energy Act (GEG) has caused anticipatory effects, as from January 2024 every newly installed heating system must be powered by 65 percent renewable energy.

The protracted public debate and the resulting guidelines have led to record demand on the market. By the end of October 2023, the heating industry recorded sales of around 1.16 million devices, with sales of gas heaters increasing by 38 percent and sales of oil heating systems increasing by 107 percent. Sales of heating heat pumps rose by 75 percent.

However, the member companies of the federal association expect the market to decline sharply in the first quarter of 2024. This is probably due to the fact that the Building Energy Act is not expected to stimulate the market. In addition, companies have noted that interest in heat pumps has decreased as a result of the GEG debate.

Overall, the new legislation has resulted in a record year for the heating industry, but companies expect the market to decline next year.