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The new Building Energy Act | Focus on the heating transition

Climate-friendly heating systems and the role of the GEG until 2045

Climate-friendly heating systems in the focus of the Building Energy Act

The switch to climate-friendly heating technologies and the role of the Building Energy Act (GEG) up to 2045 are at the centre of the heating transition. The introduction of the GEG from 1 January 2024 marks a step by the federal government towards sustainable heating technologies. From the new year, heating systems based on at least 65 per cent renewable energy must be installed in most new buildings. The aim of this measure is to increase the use of environmentally friendly heating technologies and thus make a sustainable contribution to climate protection. Below you can find out more about the importance of the GEG for the promotion of climate-friendly heating technologies and the targets for accelerating the heating transition by 2045.

Objective of the GEG: Accelerating the heating transition by 2045

The overarching goal of the GEG is to achieve complete climate neutrality by 2045 and accelerate the heating transition in Germany. The focus here is on phasing out fossil fuels such as gas and oil in favour of more sustainable alternatives.

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Requirements for new buildings from January 2024

From January 2024, stricter regulations will apply to new buildings, particularly in new-build areas. Only heating systems based on at least 65 per cent renewable energy will be permitted. Existing buildings and new buildings erected in gaps between buildings will be given longer transition periods in order to better align investment decisions with local heating planning.

Municipal heat planning and its importance until mid-2028

Municipal heat planning plays a key role in informing citizens and businesses about the heat supply options available locally. By mid-2028, municipalities are required to determine where the expansion of heating networks or climate-neutral gas networks is necessary. Pragmatic transitional solutions and generous transitional periods in the event of heating failures will be taken into account.

State funding for the switch to 65 per cent renewable energy

A key measure to promote climate-friendly heating systems is government support for converting to at least 65 per cent renewable energy. The new subsidy guidelines, part of the federal subsidy for energy-efficient buildings (BEG), are currently being finalised in the parliamentary voting process. Various technological options are available:

  • Connection to a heating network

  • Electric heat pump

  • Direct electricity heating

  • Hybrid heating (combination of renewable heating and gas or oil boiler)

  • Heating on the basis of solar thermal energy.

  • Under certain conditions: so-called "H2-ready" gas heating systems (heating systems that can be converted to 100 per cent hydrogen)

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Further options are planned for existing buildings: Biomass heating, gas heating that demonstrably uses renewable gases - at least 65 per cent biomethane, biogenic liquid gas or hydrogen. As part of the BEG's finalised funding guidelines, investors and homeowners can benefit from financial incentives to facilitate the conversion to climate-friendly heating systems and thus make a contribution to environmental protection.

Technology openness and choice of heating technologies

The technology openness of the GEG enables a wide range of options, including heating grid connections, heat pumps, hybrid heating systems and more. Energy advisors are on hand to provide support in selecting the right heating technology to meet individual needs and local conditions.

Tenant protection against rent increases and modernisation costs

Tenant protection plays a crucial role in ensuring a balanced social compatibility of the switch to climate-friendly heating systems and protecting tenants from unreasonable financial burdens.

In summary, the GEG marks a step by the federal government towards climate neutrality by 2045. By setting clear targets, it promotes the use of climate-friendly heating technologies, especially those that are based on at least 65 per cent renewable energy. Government support as part of the federal subsidy for energy-efficient buildings (BEG) incentivises the switch, while the openness of the technology enables a wide range of options. The focus is on tenant protection in order to ensure a socially acceptable switch to climate-friendly heating systems. The GEG thus plays a decisive role in accelerating the heating transition and helps to achieve Germany's climate targets.

Source: Federal Ministry for Economic Affairs and Climate Protection

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Engel & Völkers Brandenburg

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