diff --git a/config/config.default.yaml b/config/config.default.yaml
index 633bed70..b24f2ceb 100644
--- a/config/config.default.yaml
+++ b/config/config.default.yaml
@@ -483,6 +483,7 @@ sector:
   resistive_heaters: true
   oil_boilers: false
   biomass_boiler: true
+  overdimension_individual_heating: 1.1  #to cover demand peaks bigger than data
   chp: true
   micro_chp: false
   solar_thermal: true
diff --git a/scripts/add_existing_baseyear.py b/scripts/add_existing_baseyear.py
index 13527fad..c0d37a5b 100644
--- a/scripts/add_existing_baseyear.py
+++ b/scripts/add_existing_baseyear.py
@@ -592,7 +592,9 @@ if __name__ == "__main__":
             .to_pandas()
             .reindex(index=n.snapshots)
         )
-        default_lifetime = snakemake.params.existing_capacities["default_heating_lifetime"]
+        default_lifetime = snakemake.params.existing_capacities[
+            "default_heating_lifetime"
+        ]
         add_heating_capacities_installed_before_baseyear(
             n,
             baseyear,
diff --git a/scripts/prepare_sector_network.py b/scripts/prepare_sector_network.py
index 394a67f8..eb24d9cf 100755
--- a/scripts/prepare_sector_network.py
+++ b/scripts/prepare_sector_network.py
@@ -1680,6 +1680,8 @@ def add_heat(n, costs):
 
     heat_demand = build_heat_demand(n)
 
+    overdim_factor = options["overdimension_individual_heating"]
+
     district_heat_info = pd.read_csv(snakemake.input.district_heat_share, index_col=0)
     dist_fraction = district_heat_info["district fraction of node"]
     urban_fraction = district_heat_info["urban fraction"]
@@ -1814,7 +1816,8 @@ def add_heat(n, costs):
                 carrier=f"{name} {heat_pump_type} heat pump",
                 efficiency=efficiency,
                 capital_cost=costs.at[costs_name, "efficiency"]
-                * costs.at[costs_name, "fixed"],
+                * costs.at[costs_name, "fixed"]
+                * overdim_factor,
                 p_nom_extendable=True,
                 lifetime=costs.at[costs_name, "lifetime"],
             )
@@ -1883,7 +1886,9 @@ def add_heat(n, costs):
                 bus1=nodes + f" {name} heat",
                 carrier=name + " resistive heater",
                 efficiency=costs.at[key, "efficiency"],
-                capital_cost=costs.at[key, "efficiency"] * costs.at[key, "fixed"],
+                capital_cost=costs.at[key, "efficiency"]
+                * costs.at[key, "fixed"]
+                * overdim_factor,
                 p_nom_extendable=True,
                 lifetime=costs.at[key, "lifetime"],
             )
@@ -1901,7 +1906,9 @@ def add_heat(n, costs):
                 carrier=name + " gas boiler",
                 efficiency=costs.at[key, "efficiency"],
                 efficiency2=costs.at["gas", "CO2 intensity"],
-                capital_cost=costs.at[key, "efficiency"] * costs.at[key, "fixed"],
+                capital_cost=costs.at[key, "efficiency"]
+                * costs.at[key, "fixed"]
+                * overdim_factor,
                 lifetime=costs.at[key, "lifetime"],
             )
 
@@ -1915,7 +1922,8 @@ def add_heat(n, costs):
                 bus=nodes + f" {name} heat",
                 carrier=name + " solar thermal",
                 p_nom_extendable=True,
-                capital_cost=costs.at[name_type + " solar thermal", "fixed"],
+                capital_cost=costs.at[name_type + " solar thermal", "fixed"]
+                * overdim_factor,
                 p_max_pu=solar_thermal[nodes],
                 lifetime=costs.at[name_type + " solar thermal", "lifetime"],
             )
@@ -2348,7 +2356,8 @@ def add_biomass(n, costs):
                 carrier=name + " biomass boiler",
                 efficiency=costs.at["biomass boiler", "efficiency"],
                 capital_cost=costs.at["biomass boiler", "efficiency"]
-                * costs.at["biomass boiler", "fixed"],
+                * costs.at["biomass boiler", "fixed"]
+                * options["overdimension_individual_heating"],
                 marginal_cost=costs.at["biomass boiler", "pelletizing cost"],
                 lifetime=costs.at["biomass boiler", "lifetime"],
             )
@@ -2806,7 +2815,8 @@ def add_industry(n, costs):
                 efficiency=costs.at["decentral oil boiler", "efficiency"],
                 efficiency2=costs.at["oil", "CO2 intensity"],
                 capital_cost=costs.at["decentral oil boiler", "efficiency"]
-                * costs.at["decentral oil boiler", "fixed"],
+                * costs.at["decentral oil boiler", "fixed"]
+                * options["overdimension_individual_heating"],
                 lifetime=costs.at["decentral oil boiler", "lifetime"],
             )