The new building energy law will apply from November 1st.

No higher requirements

The Building Energy Act (GEG), passed by the Bundestag in June, will come into force on November 1st. It aims to simplify and reform energy conservation law for buildings and repeals the previously existing parallel regulations: the Energy Conservation Act (EnEG), the Energy Conservation Ordinance (EnEV), and the Renewable Energy Heat Act (EEWärmeG).

The new law aims to reduce energy consumption in homes and promote renewable energy. However, the GEG (Building Energy Act) does not include stricter energy efficiency requirements for existing buildings. For new buildings, a maximum energy demand of 60 kWh/m² still applies. This corresponds to the nearly zero-energy building standard that the EU mandates for new buildings from 2021 onwards. (This standard has already applied to public buildings since 2019.) Anyone building a house today should bear in mind that the current GEG regulations will be reviewed in 2023. It is therefore possible that the house will no longer comply with the legal regulations at that time, which would result in a loss of value, as the German Association for the Protection of Homeowners (BSB) has pointed out.

A special feature of the GEG (German Building Energy Act) is the innovation clause, which provides for a relaxation of the energy requirements for existing buildings: Until the end of 2025, not every single house in a neighborhood has to meet the requirements, as long as these are met overall in the respective residential area. Older houses can therefore remain unrenovated if other buildings are very energy-efficient.

Changes to the energy performance certificate

The law stipulates "stricter due diligence requirements" for energy performance certificates; for example, the building's carbon dioxide emissions must now also be recorded. For new buildings, the share of renewable energy used for heating and cooling must be specified. From November, the certificate can also be issued by a tradesperson. It must be presented by the seller or the appointed real estate agent. Furthermore, energy consultations will be mandatory when purchasing a single-family or two-family house or before a comprehensive energy-efficient renovation of an existing building.

Phasing out oil heating systems

From 2026, oil heating systems may only be installed if the use of renewable energies, natural gas, or district heating is not technically feasible. Hybrid heating systems, which combine, for example, an oil heating system with solar thermal energy, will still be permitted. Boilers installed before January 1, 1991, must be decommissioned. An incentive to replace old oil heating systems is the replacement bonus: it covers 40 percent of the investment, and the heating system replacement can also be claimed as a tax deduction.

New solar power plants will continue to be subsidized via the renewable energy surcharge; the funding cap of 52 gigawatts of installed capacity has therefore been lifted.

Criticism of the new law comes from the German Association for the Protection of Homeowners, the Association of Consulting Engineers (VBI), and the Federation of German Consumer Protection Centers: They argue that the GEG (Building Energy Act) is too lenient to achieve the climate target. The goal of a climate-neutral building stock by 2050 is thus pushed further into the future.

Sources: bundestag.de, enev-online.eu, bmwi.de, haufe.de, haus.de, weka.de, energie-experten.org

About the author

Harry Mohr

Real estate agent (Chamber of Industry and Commerce)

Harry Mohr, author of this article

Harry Mohr

Real estate agent (Chamber of Industry and Commerce)

Harry Mohr holds a degree in real estate economics (EIA) and is the owner of Immobilien Kontor Saarlouis. As a DEKRA-certified real estate appraiser, he supports his colleagues and clients in all areas of real estate marketing.