A clear vision for the energy transition
With its commitment to technological openness, the German government is creating clear and reliable framework conditions for the heating market. The established subsidy program is set to continue until at least 2029. Viessmann Climate Solutions welcomes this step and sees it as important planning security for owners and installers.
The German government is committed to technological openness, providing clarity regarding the framework conditions for the heating market. With its commitment to continue the proven subsidy landscape unchanged until at least 2029, planning security is returning for homeowners and installers.
Allendorf (Eder), February 26, 2026 – The political agreement on the new key points of the Buildings Energy Act (GEG) marks an important milestone for the German heating market. By moving away from the rigid 65 percent requirement, the German government is consistently focusing on technological openness. At the same time, with its clear commitment to securing long-term subsidies for low-carbon heating, the German government is ending the period of uncertainty. For Viessmann Climate Solutions, this is the needed signal to resolve the existing investment backlog.
Viessmann Climate Solutions is part of Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions..
Market dynamics: Trend toward key technology continues
Market data from the BDH (German Heating Industry Association) impressively demonstrates that the heating transition has really taken off. In 2025, heat pump sales in Germany exceeded those of oil and gas appliances for the first time, with 299,000 units sold. While the heat pump market recorded a significant increase of 55 percent, sales in the gas sector fell by almost 33 percent to 276,500 units, while the oil market even suffered a decline of 74 percent to 22,500 units.
“This trend sends a clear message: there is no need for regulation when the economic arguments and government support are right,” emphasizes Thomas Heim, President Climate Solutions Europe. “The German government’s commitment to ensure funding for BEG subsidies until at least 2029 is the foundation on which homeowners can now plan for the long term. There is now a guarantee: those who plan today can count on the familiar, highly attractive conditions, as CDU/CSU parliamentary group leader Jens Spahn confirmed the continuation of the current subsidy to ARD Morgenmagazin."
Heat pump system: carbon-neutral heating
Heat pumps are already a solution for CO₂-neutral heating and are therefore absolutely future-proof. The new freedom of choice for fossil fuel systems created by the reform goes hand in hand with a clear responsibility for future operating costs: from 2029, new fossil fuel heating systems must gradually be operated with increasing shares of green fuels.
The Viessmann product and solution portfolio already enables the implementation of the GEG reform; the required 10 percent share of biogenic fuels for existing systems can also already be technically achieved with the existing portfolio.
The most attractive climate solution for the vast majority of consumers is already available today and will remain so in the future: the heat pump. Owners of heat pumps are completely unaffected by price and availability uncertainties. In combination with long-term secure and currently highly attractive subsidies, heat pumps already offer maximum security and independence today.
Industrial sovereignty through “Made in Europe”
In order to leverage the positive effects of planning security for the location, Viessmann Climate Solutions is renewing its demand for a “Made in Europe” approach. Public funds generated through taxes and CO₂ pricing in Europe should be invested specifically in European technology. This not only secures climate targets, but also specifically strengthens domestic jobs and the industrial sovereignty of the continent. “The energy transition will be a success if it generates growth and secures jobs. The details of the promised funding should specifically reward ‘Made in Europe’ in its implementation in the future,” explains Thomas Heim.
Positive outlook for the renovation year 2026
Viessmann Climate Solutions is looking ahead to the coming months with great optimism. The combination of technological openness, political stability, and the explicit guarantee that subsidy levels will remain unchanged is clearing the investment backlog. As a fully integrated supplier, Viessmann Climate Solutions offers the best possible portfolio for all applications. The heat pump remains the logical choice for everyone looking for a long-term, stable, and cost-efficient solution.
About Viessmann Climate Solutions
Founded in 1917 as a heating technology manufacturer, today Viessmann Climate Solutions is a leading global provider of sustainable climate (heating, cooling, water and air quality) and renewable energy solutions. The integrated Viessmann Climate Solutions portfolio seamlessly connects products and systems via digital platforms and services, creating an individualized feel-good climate for users. Viessmann Climate Solutions is part of Carrier Global Corporation, global leader in intelligent climate and energy solutions. For more information, visit www.viessmann-climatesolutions.com
