CSU Moves To End Heat-Pump Subsidies and Repeal Germany’s Green Heating Law

CSU Proposes Scrapping Subsidies and Repealing Heating Law

Conservative leaders in Bavaria’s Christian Social Union (CSU) are pressing to end generous subsidies for heat pumps and to dismantle elements of the federal government’s green heating law, framing the push as a response to public concern over costs and regulatory rigidity.

A draft motion leaked to the German edition of Politico calls for the repeal of parts of the heating legislation introduced by the previous Ampel (traffic-light) coalition. The motion criticises the current support for heat pumps as "excessive" and urges greater technological openness.

"The excessive subsidies for heat pumps must also be stopped," the CSU motion reads, according to the Politico report.

The CSU is led by Bavarian premier Markus Söder and is the sister party of Chancellor Friedrich Merz’s Christian Democrats (CDU). Any change to federal law would require the backing of Merz’s CDU and their coalition partners in the Social Democratic Party (SPD), making reform a matter for complex intra-coalition negotiations.

Why Heat Pumps Are Controversial

Heat pumps extract heat from outdoor air, ground or water and transfer it indoors. They are promoted as a low-carbon alternative to oil and gas boilers because they do not burn fossil fuels on site and can be more efficient than conventional boilers. Supporters emphasise their environmental benefits and long-term efficiency gains.

However, critics point to high upfront costs and installation challenges. Reports suggest that installing a heat pump in Germany can cost upward of €20,000 (£17,000) in many cases, even after subsidies, fuelling public frustration and political backlash. The controversy has also been linked by some commentators to increased support for the far-right Alternative for Germany (AfD), which has opposed parts of the green agenda.

UK Comparison And Political Anecdotes

The debate is not unique to Germany. In the UK a recent study found heat pumps remain unaffordable for roughly one-third of homeowners who want one. Only about 30,000 heat pumps were installed in the first half of 2025 — far below the UK government’s annual target of 600,000 installations. Industry sales data from the UK’s leading boiler makers suggest consumer demand is well below target levels.

The coverage also noted a political detail in the UK: in September it emerged that Labour MP Ed Miliband had a gas boiler in his constituency home despite publicly backing a transition toward heat pumps.

What Comes Next

The CSU motion signals a potential rolling-back of components of Germany’s green heating policy, but any legal repeal or major policy shift would require negotiation and compromise within the governing coalition. The debate highlights the wider challenge governments face in balancing decarbonisation goals with affordability, public acceptance and practical rollout hurdles.