The proposal has been heavily criticized since it was presented last spring by the government party The Greens, led by Minister of Agriculture and Climate Change Robert Habeck.
The other governing party, the liberal FDP, has been among the main critics. The party has equated the measure to a “nuclear bomb” for Germany and has painted it as an unreasonable burden that will hit poor households.
Habeck, in turn, claims that it is necessary for Germany to achieve its climate goals and become carbon neutral by 2045.
About half of Germany’s 41 million households currently use natural gas heating and almost a quarter use heating oil.
The Bundestag in Berlin passed the law with 399 MPs voting in favor, while 275 voted against and five abstained.
The notice means that newly installed heating systems must be able to be operated with at least 65 percent renewable energy from 1 January 2024. There are no requirements that existing heating systems need to be replaced immediately. Wood heaters are still allowed.
The state must be able to cover 30 to 70 percent of the costs through financing, according to the law.