New requirements from 2026: This is how you deal with oil heating now

From 2026 there will be strict specifications for the installation of oil heating. For many German households, this already means rethinking. These alternatives exist.

Overview

From 2026 there will be new specifications for oil heating. New condensing boilers may then no longer be installed alone, but only in connection with use. Questions and answers on how best to deal with it.

What will change from 2026?

"Some are talking about a ban on oil heating from 2026, but there can be no question of that," says Alexis Gula from the Federal Association of Chimney Sweeps in Sankt Augustin. By the end of 2025, homeowners can easily install a new oil heating system. From 2026, this will still be allowed if you opt for a hybrid heating system that works with oil and a renewable energy. For example, solar energy that is used in the home via solar thermal or photovoltaic systems.

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But there are exceptions for some households. "If no gas or district heating network is available as an alternative or if, for technical reasons, no renewable energy can be integrated proportionately, a pure oil heating system can be installed after 2025," explains Adrian Willig from the Institute for Heat and Mobility (IWO), one Establishment of the German mineral oil industry.

Is a new oil heater still recommended?

"The new, highly efficient condensing boilers no longer have much in common with the old oil-fired boilers in the basement," says Gula. The efficiency of a heating system with an old constant temperature boiler is up to 70 percent, that of an oil condensing boiler up to 100 percent. "Technically and economically there is nothing wrong with these devices."

But he adds: "But when making a decision, you should also consider what is best for the climate. And that's where technology that uses renewable energies is ahead."

Adrian Willig, who speaks for the mineral oil industry, also says: "By modernizing an older heating system with an oil condensing boiler, energy can definitely be saved and heating is more environmentally friendly." However, the IWO recommends that when buying an oil heating system, "if possible, couple it with a component from renewable energies and not wait until 2026. That makes economic and environmental sense," says Willig.

The government funding shows where the journey is headed: "Pure oil heating systems are currently no longer funded," says Stefan Materne from the energy advice service of the consumer centers. Only the renewable components of oil hybrid heating systems are eligible for subsidies, i.e. a coupled solar system or heat pump.

"And with carbon pricing, oil and gas prices will go up every year." He therefore advises owners of oil heating systems to switch to regenerative heating technologies. "No CO2 tax has to be paid for this and there are very attractive funding opportunities."

Should I wait until the changeover or react now?

This is definitely a question of the money available. One consideration, however, could be the state funding opportunities - currently there are only for the foresight. Alexis Gula explains: "It's important to start before the heating breaks down. Because there is no funding for the new technology if the old heating no longer works."

What are the alternatives to oil heating?

These are often other hybrid heating systems, for example a heat pump or a solar thermal system combined with a gas condensing boiler, explains energy consultant Stefan Materne. Heating with stoves for pellets, wood chips or logs is also a possible combination.

The choice of heating is an individual decision that must suit the building: the size and condition of the house, the number of residents, roof orientation, radiators or underfloor heating and many other things play a role in determining which heating system can be the best.

How much does it cost to convert a heating system?

According to surveys by the consumer advice center, homeowners have to invest 17,000 to 32,000 euros to install a heat pump. The installation of a fuel cell costs 35,000 to 40,000 euros, a pellet heating system 25,000 to 28,000 euros and a split log gasification boiler 13,000 to 15,000 euros.

"It's significantly more expensive than installing an oil condensing boiler, but makes much more sense in terms of air conditioning," says Stefan Materne. And thanks to the current state subsidies, the financial effort can be significantly reduced. "Then the prices for the new heating with renewable fuels are almost comparable to the purchase and installation of a modern oil condensing boiler."

What funding opportunities are there?

Alternatives to the existing oil heating system are currently being generously funded. A rough overview: gas condensing boilers (called "renewable ready") at 30 percent, gas hybrid heating systems at 40 percent, solar thermal systems at 40 percent, heat pumps at 45 percent, biomass systems at 45 percent (in the case of particularly low-emission biomass systems, the subsidy increases by 5 percentage points) and renewable energy hybrid heating systems (EE hybrids) at 45 percent.